Hillcrest Energy Technologies Ltd (CSE:HEAT) (OTCMKTS:HLRTF) (FRA:7HIA) announced it has secured a product development laboratory and testing facility in Vancouver for its electric vehicle (EV) initiatives.
The Canadian clean technology company is working on two innovations in the EV space through a collaboration with Germany’s Systematec GmbH, a specialist engineering developer and component designer to major EV and electrical equipment manufacturers.
Hillcrest told shareholders that the team was “quickly advancing” towards proof-of-concept status.
READ: Hillcrest Energy Technologies appoints Panasonic North America chief Michael Moskowitz as a strategic advisor
“Joint efforts between Hillcrest and Systematec are progressing more quickly than originally estimated, in part due to the combined strengths of our control system capabilities and our partner’s extensive experience in the automotive/EV industry,” Hillcrest CTO Ari Berger said in a statement.
The success of the partnership has fast-tracked efforts and moved execution timelines ahead of schedule, according to Berger, who leads the technical team.
“Our engineering and development lab will replicate the technical set up found in Systematec’s lab, allowing team members on both continents to simultaneously conduct engineering testing as well as communicate and co-create in real-time. Setting up the Vancouver-based lab space is a positive and well-timed milestone event in our technology development strategy.”
Warrant incentive program
Separately, Hillcrest announced an early warrant exercise incentive program for up to 34.7 million eligible warrants with an exercise price of C$0.10 per warrant.
To encourage the early exercise of eligible warrants, the terms of the firm’s incentive program enable the holders to receive half of one new warrant for each eligible warrant exercised prior to June 30, 2021, with each whole new warrant having an exercise price of $0.25 per share for an 18-month term.
“The company appreciates the tremendous support from shareholders, who previously invested through private placements and had received warrants for participating,” said Don Currie, Hillcrest’s CEO.
“With our technology development and commercialization plans, including having a high-functioning lab in place to test and optimize future prototypes, being ahead of schedule, financial needs also have to keep pace … the incentive program is our financing direction of choice as it provides potential capital to the company at 75% less dilution than a traditional private placement that includes a share and a warrant.”
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas