Hillcrest Energy Technologies Ltd. announced that it has entered into a purchase agreement with a third-party investor for private placement of units for gross proceeds of up to CAD 5,000,000 on January 17, 2024. The company will raise funding through equity line. Each unit consisting of one common share and one-half of one common share purchase warrant.

All drawdown warrants issued as part of the units will be exercisable at an exercise price equal to the greater of 125% of the issue price, and the minimum exercise price permitted by policies of the CSE and will be exercisable for a period of three years from the date of issuance. The company shall pay the investor a commitment fee equal to 2.5% of the total capital of the company committed, payable in cash or common shares in the capital of the company at a deemed price of CAD 0.30 per share, at the election of the company. The parties to the equity facility expect to close the first drawdown by the end of the month.

All securities issued pursuant to the equity facility will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.