Hertz Energy Announces Close of Non-Brokered Private Placement

Rhea-AI Summary

Hertz Energy (OTCQB: HZLIF) closed a non-brokered private placement on January 16, 2026, issuing 4,200,000 units at $0.10 per unit for gross proceeds of $420,000. Each unit includes one common share and one warrant exercisable at $0.125 until 36 months from closing. Proceeds will fund general and administrative costs and advancement of the Lake George Antimony Project. Issued securities carry a Canadian statutory hold period of four months plus one day and were not registered under the U.S. Securities Act, limiting U.S. sales.

Positive

• Raised $420,000 via issuance of 4,200,000 units
• Warrants exercisable at $0.125 for 36 months provide potential future funding
• Proceeds earmarked to advance the Lake George Antimony Project

Negative

• Immediate issuance of 4,200,000 common shares plus potential 4,200,000 warrant shares increases dilution
• Securities not registered in the U.S., restricting access to U.S. investors
• Use of proceeds described as general and administrative, not a specific project budget

News Market Reaction

+37.45%

1 alert

+37.45% News Effect

On the day this news was published, HZLIF gained 37.45%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - January 16, 2026) - Hertz Energy Inc. (CSE: HZ) (OTCQB: HZLIF) (FSE: A340) ("Hertz" or the "Company") is pleased to announce that further to its news release dated December 12, 2025, it has closed a non-brokered private placement for a total of 4,200,000 units of the Company (the "Units") at a price of $0.10 per Unit, for gross proceeds of $420,000 (the "Offering"). Each Unit issued consists of one (1) common share in the capital of the Company (each a "Common Share") and one (1) Common Share purchase warrant (a "Warrant") granting the holder the right to purchase one (1) additional Common Share of the Company (a "Warrant Share") at a price of $0.125 at any time on or before 36 months from the Closing Date. The securities offered under the Offering will be subject to a statutory hold period in Canada expiring four (4) months and one day from the closing of the Offering, in accordance with applicable Canadian securities laws.

The gross proceeds from the Offering will be used for general and administrative matters and to advance the Company's current Lake George Antimony Project, a strategically positioned claims package surrounding the past-producing Lake George Antimony Mine, once the largest primary antimony producer in North America, operating intermittently from 1876 to 1996 (Government of New Brunswick, Mineral Commodity Profile No. 12, 2018).

The securities issued pursuant to the Private Placement have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

About the Company

Hertz Energy is a British Columbia-based junior exploration company focused on the acquisition and exploration of mineral properties in Eastern Canada. With a strategic portfolio of four assets, the Company is well-positioned with district-scale critical minerals projects targeting lithium, antimony and tungsten mineralization in the mining-friendly jurisdictions of Québec and New Brunswick, centered on commodities with strong demand from clean energy, defense and EV supply chains. It's diversified portfolio and well-located claims packages could enhance future resource development and strategic initiatives as the Company pursues growth opportunities.

For further information, please contact Mr. Kal Malhi or view the Company's filings at www.sedarplus.ca.

On Behalf of the Board of Directors

Kal Malhi
Chief Executive Officer and Director
Phone: 604-805-4602
Email: kal@bullruncapital.ca

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/280688

FAQ

What did Hertz Energy (HZLIF) raise in the January 16, 2026 private placement?

Hertz Energy raised $420,000 by issuing 4,200,000 units at $0.10 per unit.

What does each unit include in the HZLIF private placement closed January 16, 2026?

Each unit includes one common share and one warrant to buy one additional share at $0.125 exercisable for 36 months.

How will Hertz Energy (HZLIF) use the proceeds from the $420,000 financing?

Proceeds will be used for general and administrative purposes and to advance the Lake George Antimony Project.

How much potential dilution results from the HZLIF private placement?

The offering issued 4,200,000 new shares immediately, with up to 4,200,000 additional shares issuable if all warrants are exercised.

Are the securities from the HZLIF private placement available to U.S. investors?

No; the securities were not registered under the U.S. Securities Act and may not be offered or sold in the United States or to U.S. persons without registration or an exemption.