Hybrid Power Solutions Receives Follow Up Order for Battery Systems from Major Transit Operator, Reshoring of Terra Production and Debenture Financing

Core Viewpoint - Hybrid Power Solutions Inc. is experiencing growing confidence in its electrification platform, as evidenced by a repeat order from a major Canadian public transit agency for two Spark power systems, indicating a shift towards clean, battery-powered alternatives in public transportation [1][2][3] Group 1: Product Development and Market Position - The repeat purchase of the Spark system highlights the client's commitment to reducing emissions and reliance on gas or diesel generators, showcasing the system's advantages in urban and maintenance environments [2] - Hybrid Power Solutions is actively quoting additional Spark units to the same agency, positioning the company for further opportunities in the public transportation and infrastructure sectors [3] - The company has decided to bring the design, engineering, and assembly of its Terra battery energy storage system in-house, enhancing quality control and production timelines while reducing reliance on overseas manufacturing [4][5] Group 2: Strategic Initiatives - The in-house production of the Terra system is expected to lead to higher quality, faster innovation, and the ability to scale into larger multi-megawatt-hour systems, ensuring the company remains competitive in energy storage innovation [5][6] - Hybrid Power Solutions aims to consolidate expertise under one roof to improve service delivery, shorten timelines, and maintain oversight from concept to completion, which is crucial in the evolving clean energy market [6] Group 3: Financial Activities - The company plans to complete a non-brokered private placement of senior secured convertible debenture units for gross proceeds of up to $500,000, with a maturity of 12 months and an interest rate of 12.0% per annum [7][8] - Each convertible debenture unit will consist of a $1,000 principal debenture and 20,000 common share purchase warrants, with a conversion price of $0.05 per common share [9][10] - The funds raised will support production needs for existing orders and various strategic objectives, including enhancing supply chain efficiency and expanding market presence [13][14]