Hillcrest Announces Shares for Debt Settlement

Rhea-AI Summary

Hillcrest Energy Technologies (OTCQB:HLRTF, CSE:HEAT, FRA:7HI) plans to enter debt settlement agreements with arm's length creditors, issuing 611,111 units at $0.18 per unit to settle an aggregate of $110,000 in debt. Each unit comprises one common share and one warrant exercisable at $0.20 for 24 months.

All securities issued will be subject to a four‑month‑and‑one‑day hold period under Canadian law and are not registered under the U.S. Securities Act. Hillcrest also granted a consultant 1,000,000 stock options, vesting immediately, exercisable at $0.18 per share until July 20, 2030.

Positive

• Retires $110,000 of debt via equity units at $0.18
• Adds potential future capital via warrants at $0.20 over 24 months
• Consultant options align incentives with share price at $0.18 strike

Negative

• Equity dilution from issuance of 611,111 new units (shares plus warrants)
• Further potential dilution from 1,000,000 new stock options at $0.18
• Additional future dilution possible if all new warrants are exercised at $0.20

News Explained

If completed, the proposed settlement would satisfy $110,000 of debt by issuing 611,111 shares to creditors, increasing the share count and reducing existing holders’ percentage ownership rather than using a stated cash payment.

News Market Reaction – HLRTF

+12.02%

+12.02% Session close to close

In the Jul 21 session, HLRTF gained 12.02%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESS Newswire / July 21, 2026 / Hillcrest Energy Technologies Ltd. (OTCQB:HLRTF)(CSE:HEAT)(FRA:7HI) is pleased to announce that the Company proposes to enter into debt settlement agreements with certain arm's length creditors (the "Creditors"), pursuant to which the Company will issue 611,111 units of the Company (each, a"Unit") at a price of $0.18 per Unit in full satisfaction and final settlement of an aggregate of $110,000 in debt owed to the Creditors (the "Debt Settlement").

Each Unit will consist of one common share in the capital of the Company (each, a "Share") and one Share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase an additional Share (a "Warrant Share") at a price of $0.20 per Warrant Share for a period of 24 months following the date of issuance of the Warrant.

All securities issued in connection with the Offering are subject to a statutory hold period of four months and one day following the date of issuance in accordance with applicable Canadian securities laws.

The securities of the Company referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), 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 U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Company further announces that it has granted stock options ("Options") to a consultant of the Company to purchase up to 1,000,000 Common Shares pursuant to the Company's share option plan. The Options vest immediately and are exercisable on or before July 20, 2030, at a price of $0.18 per Common Share.

About Hillcrest Energy Technologies Ltd.
Hillcrest Energy Technologies is an energy technology company focused on providing advanced 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 on the Frankfurt Exchange as "7HI". For more information, please visit: https://hillcrestenergy.tech/.

CONTACT INFORMATION

Investor Relations
Don Currie
info@hillcrestenergy.tech
O: +1 604-609-0006
Toll-free: 1 855-609-0006

Public Relations
Jamie L. Hogue
jhogue@hillcrestenergy.tech
O: +1 602-793-9481

Cautionary Statement Regarding "Forward-Looking" Information

Some of the statements contained in this news release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects," "intends," "is expected," "potential," "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may," "could," "should," "would," "might" or "will" be taken, occur or be achieved. This forward-looking information is provided as of the date of this news release. The forward-looking information reflects our current expectations and assumptions and is subject to a number of known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to be materially different from any anticipated future results, performance or expectations expressed or implied by the forward-looking information. No assurance can be given that these assumptions will prove correct. Forward looking statements in this news release include statements related to the completion of the Debt Settlement, which remain subject to the ordinary conditions of completion, and additionally requires the entry into debt settlement agreements with each of the Creditors, as well as non-objection of the placement by regulatory authorities including the Canadian Securities Exchange. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Investors are advised to consider the risk factors under the heading "Risks and Uncertainties" in the Company's MD&A for the year ended Dec. 31, 2025, available at https://www.sedarplus.ca/ for a discussion of the factors that could cause the Company's actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward- looking information. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.

SOURCE: Hillcrest Energy Technologies Ltd.

View the original press release on ACCESS Newswire

FAQ

What is Hillcrest (OTCQB:HLRTF) announcing in its July 21, 2026 debt settlement?

Hillcrest plans to settle $110,000 of debt by issuing 611,111 units at $0.18 per unit to certain arm's length creditors. According to Hillcrest, each unit includes one common share and one warrant exercisable at $0.20 for 24 months.

How many shares and warrants will Hillcrest issue for the HLRTF debt settlement?

Hillcrest will issue 611,111 units, each with one share and one warrant, to settle debt. According to Hillcrest, each warrant allows purchase of an additional share at $0.20 for 24 months after issuance, subject to a four‑month‑and‑one‑day hold period.

At what prices are Hillcrest's HLRTF debt settlement units and warrants being issued?

The units are priced at $0.18 each, and the attached warrants have an exercise price of $0.20 per share. According to Hillcrest, 611,111 units will be issued to settle $110,000 of debt with arm's length creditors.

What stock options did Hillcrest grant alongside the July 21, 2026 HLRTF announcement?

Hillcrest granted a consultant 1,000,000 stock options exercisable at $0.18 per share until July 20, 2030. According to Hillcrest, these options vest immediately and are issued under the company's share option plan, potentially increasing future share count.

Are the new Hillcrest (HLRTF) securities in the debt settlement tradable immediately?

No, the new securities are subject to a four‑month‑and‑one‑day statutory hold period under Canadian securities laws. According to Hillcrest, the securities are also not registered under the U.S. Securities Act and cannot be sold in the United States without registration or exemption.

Does the Hillcrest HLRTF debt settlement involve any U.S. securities registration?

No, the securities issued in connection with the debt settlement will not be registered under the U.S. Securities Act. According to Hillcrest, these securities may not be offered or sold within the United States without registration or an applicable exemption from U.S. federal and state securities laws.