CoTec raises US$8.8M in convertible debentures to fund magnet recycling
What's the deal? CoTec HoldingsDealroom has a profile for this one. Try Dealroom → has completed the initial closing of a non-brokered private placement of unsecured convertible debentures totalling US$8.84M (roughly $8.6 million). The Vancouver-based company, listed on the TSX Venture Exchange, plans a further closing subject to exchange approval.
The terms: The debentures carry 12.5% annual interest, paid semi-annually in cash, with the first payment due February 28, 2027. They mature September 10, 2031 and convert into common shares at the holder's option.
Who's backing it? Kings Chapel International Ltd.Dealroom has a profile for this one. Try Dealroom → has agreed to purchase up to $5 million of debentures at the additional closing, backstopping subscriptions the company fails to secure from third-party investors. Kings Chapel is an existing insider and control person; chief executive officer Julian Treger is a beneficiary of a family trust tied to it.
What's the money for? CoTec intends to fund equipment purchases for its HyProMag USADealroom has a profile for this one. Try Dealroom → permanent magnet recycling joint venture, plus working capital and general corporate purposes.
Why now? Rare-earth magnets are a growing supply chain concern, and recycling ventures like HyProMag USA aim to reclaim material domestically. The debenture structure lets CoTec raise capital without immediate share dilution while it builds out that operation.
The signal: At roughly $8.6 million, the raise sits in the lower band of comparable rounds — modest capital for a company betting on the strategic pull toward domestic critical-materials recycling.
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