CoTec Holdings closes $20M convertible debenture offering

CoTec Holdings Corp. (TSXV: CTH)(OTCQX: CTHCF) has completed the final closing of a non-brokered private placement of unsecured convertible debentures, bringing the total raise to $20 million, according to a press release dated October 15, 2026.

The final closing generated $7,941,000 in principal, following an initial closing of approximately $12,059,000 on September 17, 2026. The debentures carry an interest rate of 12.5% per annum, paid semi-annually in cash, with the first payment due February 28, 2027. The debentures mature September 10, 2031 and are convertible into common shares at the holder's option.

CoTec said it intends to use the proceeds to fund equipment purchases for its HyProMag USA permanent magnet recycling joint venture and for general working capital purposes.

Kings Chapel International Ltd., an existing insider and Control Person of the company, purchased $5 million of the debentures at the final closing. Julian Treger, the company's chief executive officer and a director, is a beneficiary of a family trust associated with Kings Chapel. The participation of Kings Chapel and other insiders classifies the offering as a related party transaction under Multilateral Instrument 61-101.

Following the final closing, Kings Chapel owns or controls 48,842,922 common shares, 1,127,819 share purchase warrants, and $6.75 million in convertible debentures, representing approximately 40.51% of issued and outstanding common shares on a non-diluted basis and approximately 42.88% on a partially diluted basis.

In connection with the final closing, the company paid $95,510 in cash fees and issued 54,577 compensation warrants to finders, each exercisable at $1.75 per common share for 18 months. Across both closings, total cash fees paid to finders were $623,400, with 356,228 compensation warrants issued in aggregate.

All securities issued at the final closing are subject to a four-month-plus-one-day statutory hold period under Canadian securities law.

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