CoTec closes $20M debenture raise to fund US magnet recycling
What's the deal? CoTec HoldingsDealroom has a profile for this one. Try Dealroom → (TSXV:CTH) has completed the final closing of a $20 million private placement of unsecured convertible debentures. The final tranche added $7,941,000 on October 15, 2026, building on an initial closing of September 17, 2026.
The terms: The debentures carry 12.5% annual interest, payable semi-annually in cash, and mature September 10, 2031. Holders can convert them into CoTec common shares.
What's the money for? CoTec plans to use the net proceeds 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 needs.
Who's in? Kings Chapel International Ltd.Dealroom has a profile for this one. Try Dealroom → bought $5 million of the debentures at the final closing. Kings Chapel is an existing insider and control person of CoTec; chief executive officer Julian Treger, also a director, is a beneficiary of a family trust tied to the firm.
Why it's a related-party deal: Because Kings Chapel and other insiders participated, the offering qualifies as a related-party transaction under MI 61-101. CoTec is relying on exemptions from the formal valuation and minority shareholder approval requirements.
The signal: The $20 million raise ranks among the largest in its class — above the 95th percentile for non-VC private placements in Canadian energy over the trailing 48 months. The structure, heavy on insider backing and earmarked for magnet recycling equipment, reflects momentum behind domestic supply chains for critical materials.
Read more: pr-inside.com
Image credit: Oeko-Institut e.V.
