CoTec Holdings Corp. intends to raise gross proceeds of up to $20 million through a non-brokered private placement of unsecured convertible debentures.

The debentures will carry an annual interest rate of 12.5%, payable semi-annually in arrears, with the first interest payment scheduled for February 28, 2027. The instruments will mature five years from the date of issue. Holders may convert the principal amount into common shares at any time at a price of CAD$1.75 per share.

CoTec plans to use the net proceeds to fund equipment purchases for its HyProMag USA permanent magnet recycling joint venture, with the remainder allocated to working capital. HyProMag USA targets commercial production at its Texas facility in the second half of 2027.

The company holds the right to redeem the debentures at any time. If redemption occurs before the third anniversary of issuance, the payout will equal the principal plus accrued interest alongside the aggregate interest payments that would have otherwise accrued up to the three-year mark. At CoTec's election, principal and interest obligations may be satisfied in cash or, subject to approval by the TSX Venture Exchange, in common shares.

The offering remains conditional on customary regulatory approvals, including acceptance from the TSX Venture Exchange. All securities issued under the placement will carry a statutory hold period of four months and one day. Certain company insiders are expected to participate in the financing.

CoTec expects to close the financing in August 2026.

Read the full announcement: CoTec Holdings Corp. Announces $20m Private Placement Of Unsecured Convertible Debentures