VANCOUVER, BC, July 22, 2024 – Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF) (FRA: 7HI) (“Hillcrest” or the “Company”) is pleased to announce it has submitted a drawdown notice (the “Notice”) to a third-party investor (the “Investor”) pursuant to the $5 million equity drawdown facility (the “Equity Facility”) initially announced on December 19, 2023. The Notice provides that the Company will drawdown $540,000 from the Equity Facility (the “July Drawdown”). Pursuant to the terms of the Equity Facility, the Investor has confirmed that it will fund the full amount of the July Drawdown.
In connection with the July Drawdown, the Company will issue the Investor such number of units of the Company (the “Units”) equal to $540,000 divided by the Issue Price (defined below). Each Unit will consist of one common share in the capital of the Company (a “Share”) and one-half of one Share purchase warrant (each whole warrant, a “Warrant”).
The Units will be issued at a price (the “Issue Price”) equal to the greater of (a) the discounted market price permitted under the policies of the Canadian Securities Exchange (the “CSE), and (b) 90% of the average closing bid price of the Shares on the CSE for the ten (10) consecutive trading days immediately prior to, but ending on the day before, the proposed closing date for the July Drawdown. All Warrants issued as part of the Units will be exercisable for a period of three years from the date of issuance at an exercise price equal to the greater of (a) 125% of the Issue Price, and (b) the minimum exercise price permitted by policies of the CSE. Additionally, the Company will pay the Investor a 12% drawdown fee on the July Drawdown, which is payable in Shares or by deduction from the funded advance, at the option of the Company.
The completion of the July Drawdown is anticipated on or about August 2, 2024. The issuance of the above noted securities to the Investor is subject to customary closing conditions including, but not limited to, the Company’s receipt of proceeds from the July Drawdown.
The Company intends to use the proceeds from the July Drawdown for technology and product development, commercialization, investor relations and general working capital.
All securities issued pursuant to the Equity Facility, including the July Drawdown, 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.
CONTACT INFORMATION
Investor Relations Don Currie dcurrie@hillcrestenergy.tech +1-604-609-0006 Toll-free: 1-855-609-0006 Or Walter Frank/Jennifer Belodeau IMS Investor Relations hillcrest@imsinvestorrelations.com +1 203-972-9200 Public Relations Jamie Hogue jhogue@hillcrestenergy.tech +1 602-793-9481
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.
The securities of the Company referred to in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws. Accordingly, the securities of the Company may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Cautionary Statement Regarding “Forward-Looking” Information