Hydreight Announces $10 Million Bought Deal Private Placement

Executive Summary

• Hydreight Technologies Inc. announced a bought‑deal private placement of 2,470,000 units at C$4.05 per unit for total gross proceeds of C$10,003,500.
• Each unit consists of one common share and half of a warrant; warrants allow purchase of additional shares at C$5.27 within 24 months.
• The underwriters have an option to purchase up to an additional 50 % of the units (up to C$5,001,750) prior to closing, and will receive a 6 % cash commission plus warrants equal to 6 % of the units sold.

Key Details

• Units Offered: 2,470,000 units @ C$4.05 each → C$10,003,500 gross proceeds.
• Unit Composition: 1 common share + ½ warrant (each whole warrant = right to buy one common share at C$5.27).
• Warrant Terms: Exercise price C$5.27; exercisable any time up to 24 months after the closing date.
• Underwriters’ Option: Up to 48 hours before closing, underwriters may purchase additional units equal to 50 % of the original issuance at the same issue price, providing potential extra gross proceeds of C$5,001,750.
• Commission & Additional Warrants: Underwriters receive a cash commission of 6 % of aggregate gross proceeds and warrants covering 6 % of the units sold (exercise price equal to Issue Price).
• Use of Proceeds: Support sales growth, create/expand pharmacy production lines, fund working capital and general corporate purposes.
• Closing Date: Expected on or about January 27, 2026, subject to regulatory approvals (including TSX Venture Exchange).
• Regulatory Exemptions: Offering relies on Canadian “listed issuer financing” exemption and U.S. securities law exemptions; not registered in the United States.

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

Materiality Assessment: Material – Positive (significant financing that will fund growth initiatives).