CoTec Receives $19.9 Million From Warrant Acceleration

• Event: CoTec Holdings Corp. announced the receipt of approximately $19.9 million in gross proceeds from the exercise of 16.6 million warrants.
• Context: This concludes a warrant acceleration program triggered on March 4, 2026, when the share price exceeded C$1.35 for 15 consecutive days.
• Dilution: The exercise resulted in the issuance of 16.6 million common shares, increasing total outstanding shares to 115,136,805.
• Expiration: All remaining unexercised warrants (approx. 7% of the accelerated pool) expired on April 10, 2026.
• Use of Proceeds: Not explicitly disclosed but implied for ongoing operations and strategic initiatives.

• Cash Flow Impact: The $19.9 million inflow is significant relative to the company's market capitalization (~$163M), representing over 10% of current equity value in immediate liquidity. This extends the runway significantly given the Q3 2025 cash balance was only $5.8 million.
• Dilution Impact: The share count increased from approximately 98.5 million (pre-exercise implied) to 115.1 million, a ~17% increase in float from this specific tranche alone. However, the exercise price of C$1.20 was below the trading range during the acceleration period ($1.35–$2.38), making it accretive compared to a potential private placement at lower prices.
• Expectation vs. Reality: The market was aware of the acceleration trigger (March 4 announcement) and the interim progress (April 8 update showing $17.4M raised). This final release confirms the completion but offers no new surprises regarding valuation or project economics.
• Strategic Alignment: The capital supports the advancement of HyProMag USA and Lac Jeannine projects, which require substantial CAPEX ($142M+ for Texas hub alone), meaning this cash is a bridge rather than a full funding solution.

• Overview: CoTec Holdings Corp. is a critical materials company focused on technology-enabled mineral recovery from waste streams (tailings) and recycling rare earth magnets. It operates through subsidiaries and joint ventures rather than direct mining operations.
• Flagship Project 1: HyProMag USA (JV): A 50/50 JV with HyProMag Ltd (owned by Mkango Resources). Focuses on recycling NdFeB magnets from HDDs and motors using HPMS technology. Texas hub lease finalized; commissioning targeted mid-2027.
• Flagship Project 2: MagIron LLC: CoTec holds ~16.5%. Restarting Plant 4 (MN) and Reynolds Pellet Plant (IN). DFS completed Jan 2026 with $1.6B NPV.
• Flagship Project 3: Lac Jeannine: Iron tailings recovery project in Quebec. Feasibility study initiated Oct 2025 by BBA Inc.