Hillcrest Energy Technologies Ltd (CSE:HEAT, OTCQB:HLRTF) has announced the closing of the book for its previously announced non-brokered private placement of units of the company with gross proceeds of the offering expected to total $1.518 million.
The company anticipates distributing 12,650,000 units at a price of C$0.12 each, resulting in the expected issuance of 14,700,000 shares.
The original terms of the offering consisted of up to 20,000,000 units of the company at a price of C$0.12 per unit. Each unit contains 1.2 common shares in the capital of the company.
Hillcrest previously announced, on October 26, 2022, the closing of the first tranche of the offering as a result of receipt of firm commitments by subscribers. The company has corrected the disclosure to indicate that the book was closed on the first tranche, but securities are being distributed upon final closing, which is anticipated to occur on or about January 6, 2023. The company said it has now received all commitments it is expecting to close on in connection with the offering.
READ: Hillcrest Energy Technologies highlights 2022 technology and commercialization milestones
All securities issued in connection with the offering will be subject to a four-month and one-day hold period from the closing date, in accordance with applicable securities laws.
Other financial updates
On October 26,2022, Hillcrest announced the closing of a temporary warrant exercise program. This closing announcement was based on expected commitments being $450,000. As of October 26, 2022, the company had received proceeds from program totaling $360,000 as a result of 3,000,000 common share purchase warrants being exercised for units consisting of 1.2 shares, at a price of C$0.12 per unit. The remaining $90,000 of committed warrant exercises were not delivered to the company, and as such the company closed on a total of $360,000.
Hillcrest also announced the extension of 11,781,500 common share purchase warrants exercisable for 11,781,500 shares at an exercise price of C$0.25 to January 5, 2024. The warrants would originally have expired on January 5, 2023.
The company also said it has granted incentive stock options to a consultant of the company to purchase up to 150,000 shares under its share option plan dated July 29, 2021. The options are exercisable on or before November 30, 2027, at an exercise price of C$0.15 per share provided that the consultant achieves all performance milestones outlined in an independent contractor agreement on or before February 3, 2023.
Hillcrest also granted restricted stock units (RSUs) to a consultant of the company for up to 500,000 shares, at a grant price of C$0.15 per share, under its RSU Plan dated July 28, 2021 - 250,000 of the RSU's vest on November 30, 2023; with the remaining 250,000 RSU's vesting on February 28, 2023.
All the securities mentioned have not been and will not be registered under the United States Securities Act of 1933, as amended 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 US Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the US Securities Act and applicable state securities laws.
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.
Contact the author at jon.hopkins@proactiveinvestors.com