Hillcrest Announces Drawdown of Previously Announced Equity Drawdown Facility

VANCOUVER, BC, August 26, 2024 – Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF) (FRA: 7HI) (“Hillcrest” or the “Company”) is pleased to announce that, further to its news release on July 22, 2024, it has closed the most recent drawdown of the previously announced $5 million equity drawdown facility (the “Equity Facility”).

The Company has provided the third-party investor (the “Investor”) with a drawdown notice and on August 26, 2024, the Investor funded the Company with a drawdown amount of $540,000 (the “August Drawdown”). Pursuant to the terms of the Equity Facility, in connection with the August Drawdown the Company:

• issued the Investor 2,076,923 units of the Company (“Units”) at a deemed price of $0.26 per Unit. Each Unit is comprised 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”), each of which is excisable to acquire one additional Share at a price of $33 for a period of three years from the date of distribution; and

 

• issued the Investor 249,230 Shares at a deemed price of $0.26 per Share in satisfaction of the drawdown fee payable in connection with the July Drawdown.

 

The Company intends to use the proceeds from the Equity Facility, including the August Drawdown, for technology and product development, commercialization, and general working capital.

To date and in connection with past drawdowns, the Company has received a total of $1,465,673 in proceeds from the Equity Facility and issued 6,915,493 Shares and 3,225,336 Warrants. Of the 3,225,336 Warrants, all of which are exercisable for a period of three years from the date of distribution, 741,541 Warrants are exercisable at a price of $0.31, 547,044 are exercisable at a price of $0.30, 536,171 are exercisable at a price of $0.25, 362,119 are exercisable at a price of $0.28, and 1,038,461 are exercisable at a price $0.33. Additionally, the Company previously issued 1,022,830 Shares to the Investor in satisfaction of a Commitment Fee related to the Equity Facility.

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.

About Hillcrest Energy Technologies Hillcrest Energy Technologies is a clean technology company developing high value, high performance power conversion technologies and digital control systems for next-generation powertrains and grid-connected renewable energy systems. From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future. Hillcrest is publicly traded on the CSE under the symbol “HEAT,” on the OTCQB Venture Market as “HLRTF” and the Frankfurt Stock Exchange as “7HI.” For more information, please visit: https://hillcrestenergy.tech/.