HITIQ Raises $1.4 Million to Boost Expansion and Commercialisation

Placement Details and Structure

HITIQ Limited (ASX:HIQ) is embarking on a $1.4 million capital raise via a two-tranche private placement, issuing 200 million new shares priced at 0.7 cents each. The first tranche will deliver 180 million shares raising $1.26 million under existing placement capacity, while the second tranche proposes an additional 20 million shares contingent on shareholder approval. This structure allows HITIQ to immediately shore up its balance sheet while seeking investor endorsement for the remaining shares.

Each new share issued under the placement will come with an unlisted free attaching option exercisable at the same 0.7 cent price, expiring on 30 June 2027. Upon exercising these options, holders receive one fully paid share and a further piggyback option exercisable at 0.7 cents until 30 June 2029. The piggyback options add a layered incentive for investors, potentially extending their exposure to HITIQ’s share price upside over the coming years.

Use of Funds and Strategic Implications

The fresh capital is earmarked to bolster HITIQ’s working capital and balance sheet resilience, underpinning its FY27 operating plan. The company intends to channel funds towards expansion, commercialisation, and ongoing development activities, which aligns with its broader strategy to scale its concussion management and athlete safety technology offerings globally.

HITIQ’s flagship product, PROTEQT™, an instrumented mouthguard co-developed with Shock Doctor, remains central to its commercial ambitions. The technology delivers real-time head impact data, a critical tool in concussion management across sports and clinical settings. This placement supports the company’s momentum following a significant sales surge earlier in the year, positioning it to capitalise on growing demand for athlete safety solutions.

Placement Facilitation and Shareholder Approval

SP Corporate Advisory and Erity Capital are acting as Joint Lead Managers for the placement. In partial payment for their services, they will receive options equal to 30% of the New Options issued to investors. This arrangement aligns the managers’ interests with HITIQ’s capital raising success and future share price performance.

While the first tranche proceeds are expected to settle and be quoted on the ASX in early July, the second tranche awaits shareholder approval at a general meeting to be convened as soon as practicable. The outcome of this vote will be critical in determining the full extent of the capital raise and subsequent dilution.