HITIQ Boosts Balance Sheet with $1.4M Capital Raise and Victorian Grant

Capital Raise and Government Grant Strengthen HITIQ’s Financial Platform

HITIQ Limited (ASX:HIQ) has significantly bolstered its balance sheet, completing a $1.4 million two-tranche placement targeting professional and sophisticated investors. This capital injection arrives alongside a milestone-based Victorian Government grant agreement, providing non-dilutive funding to underpin the expansion of HITIQ's Victorian headquarters, manufacturing capacity, engineering resources, and R&D initiatives.

The capital raise, combined with the government grant, equips HITIQ with the working capital necessary to accelerate commercialisation efforts and manufacturing scale-up ahead of FY27. The company also completed the full drawdown of a $1.0 million working capital facility during the quarter, further improving liquidity.

Commercial Momentum Builds Across Multiple Sectors

HITIQ continues to broaden its commercial footprint across retail, direct-to-consumer, universities, community and elite sport, and is actively developing strategic opportunities in defence and institutional markets. The company’s instrumented mouthguard technology, central to its PROTEQT™ platform, has been deployed in several research collaborations, including trials with the South Australian Health and Medical Research Institute and the University of Adelaide, supporting concussion threshold development for youth athletes.

Further supply agreements, such as a 12-month deal with Griffith University for research at the Queensland Academy of Sport, reinforce HITIQ’s growing presence in academic and research environments. The company has also intensified engagement with Australian Defence and overseas military organisations, positioning itself to capitalise on long-term opportunities in concussion management and brain health technologies.

Victorian Manufacturing and Product Innovation Accelerate

Investment in Victorian manufacturing capabilities remains a priority, with HITIQ expanding engineering resources, refining production processes, and enhancing supply chain infrastructure. These efforts aim to support increased production volumes, product innovation, and future global demand. The milestone-based government grant validates the company’s commitment to establishing Victoria as its advanced manufacturing and research hub.

Management continues to focus on improving manufacturing efficiency and gross margins through supply chain optimisation, while maintaining disciplined capital management to support product innovation and sales capability development.

Financial Position and Capital Management

Alongside the capital raise, HITIQ has converted $3.39 million of convertible notes to equity during the financial year, reducing debt exposure. The company manages a $3.4 million loan facility comprising convertible notes and working capital loans, with interest rates around 12.5%. Cash flow from operations remains negative at $1.086 million for the quarter, reflecting ongoing investment in commercial expansion and manufacturing infrastructure.

Despite operating cash outflows, HITIQ’s liquidity position improved, with cash and equivalents rising slightly to $169,000 at quarter-end. The company anticipates that increasing sales and capital management initiatives will sustain its cash flow going forward.

Positioned for Growth in FY27

Entering FY27, HITIQ is focused on accelerating revenue growth across domestic and international markets. Key priorities include expanding defence sector opportunities, deepening university collaborations, scaling manufacturing capability in Victoria, and enhancing gross margins. The company’s integrated hardware and software concussion management platform aligns with rising regulatory attention on player welfare and growing global demand for brain health technologies.

While the capital raise and government grant provide a solid foundation, the timing and scale of commercial opportunities in defence and insurance sectors remain uncertain. Shareholder approval for the second tranche of the placement is pending, representing a near-term catalyst to watch.