Hybrid Power Solutions Amends Outstanding Secured Convertible Debentures

Rhea-AI Summary

Hybrid Power Solutions (CSE: HPSS) (OTCQB: HPSIF) has amended the terms of its outstanding secured convertible debentures, totaling approximately $161,100. The key changes include:

1. Extension of maturity date by 60 days, from August 18, 2024 to October 17, 2024.

2. Reduction of conversion price from $0.32 per share to $0.14 per share.

These debentures, held by a single arm's length party, were originally purchased in August 2023. All other terms of the debentures remain unchanged. This amendment provides Hybrid with additional time to meet its financial obligations while potentially making the conversion option more attractive to the debentureholder.

Positive

• Extension of maturity date by 60 days, providing more time for the company to meet its financial obligations
• Reduction of conversion price from $0.32 to $0.14 per share, potentially making the conversion option more attractive to the debentureholder

Negative

• Reduction in conversion price may lead to increased dilution if the debentures are converted to shares
• The need to amend debenture terms may indicate financial challenges or cash flow issues

News Market Reaction – HPSIF

-47.13%

1 alert

-47.13% News Effect

On the day this news was published, HPSIF declined 47.13%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - August 19, 2024) - Hybrid Power Solutions Inc. (CSE: HPSS) (OTCQB: HPSIF) (FSE: E092) ("Hybrid" or the "Company") announces that it has amended the terms of its outstanding secured convertible debentures representing a principal amount of approximately $161,100 (the "Debentures"). The Debentures are held by one arm's length party (the "Debentureholder") and were originally purchased in August, 2023 (see the Company's news release dated August 29, 2023 for more information). The Debentures were initially set to mature on August 18, 2024 and the Debentureholder agreed to extend this maturity date by 60 days to October 17, 2024. In addition, the conversion price of the Debentures has been decreased from $0.32 per share to $0.14 per share. Other than the amendments disclosed above, the original terms of the Debentures remain in full force and effect.

For further information, inquiries, or media opportunities, please contact:

On behalf of the Company:

Francois Byrne
CEO and Director

invest@hybridps.ca
1 (866) 549-2743
www.investhps.com

About Hybrid Power Solutions Inc.

Hybrid Power Solutions Inc. is a Canadian clean energy innovator listed on the Canadian Securities Exchange under the symbol "HPSS". The company specializes in developing sustainable energy solutions that redefine power access and storage across industries. With a focus on innovation and environmental responsibility, Hybrid continues to lead the charge in providing scalable, cost-effective power solutions for a greener future.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220365

FAQ

What changes did Hybrid Power Solutions (HPSIF) make to its convertible debentures on August 19, 2024?

Hybrid Power Solutions extended the maturity date of its $161,100 convertible debentures by 60 days to October 17, 2024, and reduced the conversion price from $0.32 to $0.14 per share.

How much is the total principal amount of the amended debentures for Hybrid Power Solutions (HPSIF)?

The total principal amount of the amended debentures is approximately $161,100.

When were the original debentures purchased by Hybrid Power Solutions (HPSIF)?

The original debentures were purchased in August 2023.

What is the new conversion price for Hybrid Power Solutions' (HPSIF) amended debentures?

The new conversion price for the amended debentures is $0.14 per share, reduced from the original $0.32 per share.