Hydreight closes $11.5-million debenture offering

Executive Summary

• Hydreight Technologies Inc. has closed its oversubscribed private placement of unsecured convertible debentures, raising aggregate gross proceeds of $11.5 million.
• The offering included the full exercise of the agent's 1,500-unit overallotment option, bringing the total issuance to 11,500 debentures at $1,000 per unit.
• The net proceeds are designated for general corporate and working capital purposes, with the CEO citing recent profitability and a focus on disciplined growth.

Key Details

• Gross Proceeds: $11.5 million.
• Instrument: Unsecured convertible debentures.
• Quantity: 11,500 debentures issued (10,000 base + 1,500 from overallotment).
• Issue Price: $1,000 per debenture.
• Maturity Date: September 4, 2028.
• Interest Rate: 9.0% per annum, payable semi-annually in arrears on June 30 and December 31.
• First Interest Payment Date: December 31, 2025.
• Conversion Price: $4.06 per common share.
• Forced Conversion Trigger: The company may force conversion with 10 days' notice if the volume-weighted average trading price on the TSX Venture Exchange exceeds $5.08 for 20 consecutive trading days.
• Agent Compensation:
  • Cash Commission: $685,800.
  • Advisory Fee: $4,200.
  • Total Cash Compensation: $690,000.
  • Broker Warrants: 168,916 warrants exercisable at $3.74 per share for 24 months.
  • Advisory Fee Warrants: 1,034 warrants.
• Statutory Hold Period: 4 months and 1 day following issuance for all securities (debentures, debenture shares, broker warrants, and compensation shares).
• Use of Proceeds: General corporate and working capital purposes.
• Regulatory Status: Subject to final approval of the TSX Venture Exchange.

Notable Quotes

• "As reflected in our Q2 financials, our company has now reached profitability, and we remain focused on growing the business with discipline and efficiency. This raise provides additional fuel to accelerate that growth and support our long-term strategy." — Shane Madden, CEO