Hillcrest Energy Technologies Ltd (CSE:HEAT, OTCQB:HLRTF) has announced the closing of its previously announced temporary warrant exercise program and the closing of the first tranche of its previously announced non-brokered private placement.
Under the warrant program, which was intended to encourage the early exercise of up to 14,100,000 outstanding common share purchase warrants, the company said it received written commitments to exercise 3,750,000 of the eligible warrants, resulting in 4,500,000 common shares being issued with gross proceeds of $450,000.
The company also submitted for closing the first tranche of its offering which consists 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 of the company.
Gross proceeds from the first tranche are expected to total $1,460,000 from subscriptions of 12,166,667 units at a price of C$0.12 each, resulting in the expected issuance of 14,600,000 common shares of the company.
READ: Hillcrest partners with Tier 1 automotive supplier; says its inverter technology to underpin future product
A second and final tranche is expected to occur on or before November 14, 2022.
A portion of the offering constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (MI 61-101) as 1,506,667 units were issued to certain insiders of the company under the offering.
All securities issued in connection with the offering will be subject to a four-month hold period from the closing date, in accordance with applicable securities laws.
The securities 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 under an exemption from the registration requirements of the US Securities Act and applicable state securities laws.
The Vancouver, British Columbia-based clean technology company develops power conversion technologies and control system solutions for electric vehicles and electrical systems.
Contact the author at jon.hopkins@proactiveinvestors.com