Hybrid Power closes $500,000 debenture financing

Executive Summary

• Hybrid Power Solutions Inc. completed a non-brokered private placement of secured convertible debentures, raising gross proceeds of $500,000.
• The financing was previously announced on August 13, 2025, and the funds are designated to support production for an existing order of two "Terra" units for a major construction client.
• Proceeds will also fund the relocation of manufacturing to North America, the rollout of connected technology features in Q4 2025, and expansion of sales and marketing efforts in Canada and the U.S.

Key Details

• Transaction Type: Non-brokered private placement of secured convertible debentures.
• Gross Proceeds: $500,000.
• Use of Proceeds:
  • Support production needs for an existing order for two "Terra" units from a major construction company.
  • Relocate Terra manufacturing to North America to enhance supply chain efficiency, quality control, and production timelines.
  • Advance development and rollout of connected technology features, set for release across all units in Q4 2025.
  • Adopt advanced production and quality control processes to boost efficiency, ensure product consistency, meet regulatory standards, lower costs, and improve margins.
  • Expand presence at key industry trade shows, live demonstrations, and client roadshow events across Canada and the United States in Q4 2025.
  • Hire two additional sales representatives dedicated to key market verticals in Canada and the U.S.
  • General working capital.
• Previous Announcement: The offering was previously announced on August 13, 2025.
• Investor Quote: Aaron Eisenberg, partner at Plaza Capital, stated, "We're pleased to continue our partnership with Hybrid Power Solutions and support this next stage of growth. We look forward to their continued success in delivering clean, reliable energy solutions."

Notable Quotes

• "We're pleased to continue our partnership with Hybrid Power Solutions and support this next stage of growth. We look forward to their continued success in delivering clean, reliable energy solutions," — Aaron Eisenberg, Partner at Plaza Capital.