HS GovTech Solutions Inc. announced a private placement of 1,352,000 units at a price of CAD 0.37 per unit for the gross proceeds of CAD 4,500,310 on February 15, 2023. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of CAD 0.50 for 36 months from the date of issuance.

The common shares and warrants underlying the units issued under the transaction will be subject to a hold period of four months and one day from the closing date. The transaction is subject to customary closing conditions, including the approval of the securities regulatory authorities and the Canadian Securities Exchange. The transaction is expected to close on or about February 28, 2023, or such other date as the Company and Echelon may mutually agree.