Hydreight arranges $10-million bought deal offering

Executive Summary

• Hydreight Technologies Inc. has launched a $10 million bought deal private placement of 2.47 million units at $4.05 per unit, led by Canaccord Genuity Corp.
• The offering includes a 48-hour option for the underwriters to purchase an additional 50% of the units, potentially raising up to $5 million more.
• Net proceeds will be used to support sales growth, expand pharmacy production lines, and fund working capital and general corporate purposes.

Key Details

• Transaction Structure: Bought deal private placement of 2.47 million units.
• Price: $4.05 per unit.
• Gross Proceeds: $10,003,500 (base); up to $15,005,250 if the underwriters' option is fully exercised.
• Underwriter: Canaccord Genuity Corp. as lead underwriter and sole bookrunner.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one common share at an exercise price of $5.27. Warrants are exercisable for 24 months from the closing date.
• Underwriter Option: The underwriters have an option, exercisable up to 48 hours prior to closing, to purchase up to an additional 50% of the units at the issue price.
• Use of Proceeds: Support sales growth, create/expand pharmacy production lines, working capital, and general corporate purposes.
• Underwriter Compensation:
  • Cash commission of 6.0% of aggregate gross proceeds.
  • Warrants to acquire common shares equal to 6.0% of the number of units sold, exercisable at the issue price for 24 months from closing.
• Regulatory Basis: Relies on the Listed Issuer Financing Exemption (NI 45-106) in Canada and exemptions from U.S. Securities Act registration requirements.
• Closing Date: Expected on or about January 27, 2026, subject to TSX Venture Exchange approval and other regulatory approvals.

Notable Quotes

• "Q4 demonstrated the continued and accelerating strength of our model -- expanding proven pharmacy product lines and launching high-demand products drives real, scalable growth. This financing will allow us to further accelerate that momentum and expedite customer growth on all three verticals by expanding our technology and platform offerings, expanding production capacity, accelerating new product rollouts, and strengthening the infrastructure needed to support growing demand across our nationwide platform." — Shane Madden, CEO