Hillcrest Announces Closing of First Tranche of Unit Offering

Executive Summary

• Hillcrest Energy Technologies closed the first tranche of its previously announced unit offering, raising $2.66 M in gross proceeds at $0.09 per unit.
• The financing consisted of a cash component ($764,650) from a private placement and a debt‑settlement component ($1.89 M) used to retire debt owed to arm’s‑length creditors.
• The offering issued 29,519,536 common shares and an equal number of warrants (exercise price $0.12, 24‑month term), strengthening the company’s balance sheet and providing capital for ZVS technology development and general working capital.

Key Details

• Units sold: 8,496,112 units (cash private placement) + 21,023,424 units (debt settlement) = 29,519,536 units total.
• Gross proceeds: $2,656,758 at $0.09 per unit.
• Cash component: $764,650 raised via private placement of 8,496,112 units.
• Debt‑settlement component: $1,892,108 used to retire debt to arm’s‑length creditors through issuance of 21,023,424 units.
• Equity issued: 29,519,536 common shares and 29,519,536 warrants.
• Warrant terms: One warrant per unit; exercise price $0.12 per share; exercisable for 24 months from issuance; accelerated expiry possible after 30 business‑day notice if the share trades ≥ $0.36 VWAP for ten consecutive days (post‑four‑month lock‑up).
• Use of proceeds: Further development and commercialization of ZVS technology, marketing, investor relations, retirement of accounts payable, and general working capital.
• Future financing: Potential second tranche may include up to $3 M investment from Pasqua First Nation (PFN) and additional units/debt settlements; will rely on CSE Policy 4 exemption to avoid shareholder approval.
• Regulatory notes: Securities subject to a statutory four‑month‑plus‑one‑day hold period; offering not registered under U.S. securities laws.

Notable Quotes

“This financing strengthens Hillcrest's financial health by retiring debt and providing fresh capital for the Company's continued technology development and general operations,” – Don Currie, CEO

All boilerplate, forward‑looking statements, and disclaimer text have been omitted for brevity.