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This news release is not for distribution to the United States Newswire Services or for dissemination in the United States.
Second purchase signals growing confidence in HPS platform as fleet electrification gains momentum
Toronto, Ontario – TheNewswire - August 13, 2025 – Hybrid Power Solutions Inc. (CSE: HPSS) (OTC: HPSIF) (FSE: E092) ("Hybrid" or the "Company") is pleased to announce a repeat order of two (2) Spark power systems from a major Canadian public transit agency, following the successful evaluation of an initial test unit.
The repeat purchase demonstrates growing confidence in Hybrid’s platform and highlights the client’s continued interest in electrifying site operations and reducing emissions through clean, battery powered alternatives. The Spark system is being used to support operations that would otherwise rely on gas or diesel generators, offering a quiet, low maintenance, and zero-emission solution for both urban and maintenance environments.
“When a major transit operator comes back with a follow up order, it shows we’re delivering performance where it matters,” said Francois Byrne, CEO of Hybrid Power Solutions. “This is a clear signal that clean energy is not only viable but also being validated in the field by some of the most demanding infrastructure clients in the country.”
Hybrid currently has additional Spark units under active quotation with the same agency, positioning the Company for further opportunities within the public transportation and infrastructure sectors.
Bring Terra Production Home to Canada
Hybrid also announces that the design, engineering, and assembly of its flagship Terra battery energy storage system (“BESS”) will now be completed inhouse at its facility, ending reliance on overseas manufacturing partners. This strategic move reflects the management team’s commitment to investing in the long-term knowledge base required to deliver market leading energy storage solutions. By reshoring production, Hybrid gains direct control over quality, performance, and customization, allowing the Company to respond faster to customer needs and technological advances.
“Bringing Terra’s production home is more than a manufacturing decision it’s an investment in our future capabilities,” said Francois Byrne, CEO of Hybrid Power Solutions. “It means higher quality, faster innovation, and the ability to build bigger, more powerful systems on the same design foundation.”
The Terra’s architecture will now serve as the design basis for larger scale BESS platforms, giving Hybrid Power Solutions the flexibility to scale into multi-megawatt-hour systems with ease. This shift also enables rapid adaptation to emerging battery chemistries and next generation power components, ensuring the Terra remains at the forefront of energy storage innovation.
By consolidating expertise under one roof, Hybrid is positioning itself to deliver better service for end clients, shorten delivery timelines, and maintain full oversight from concept to completion, critical advantages in a rapidly evolving clean energy market.
Debenture
Hybrid also announces that the Company intends to complete a non-brokered private placement (the “Offering”) of senior secured convertible debenture units of the Company (each, a “Convertible Debenture Unit”) for aggregate gross proceeds of up to $500,000, led by Plaza Capital (the “Lead Investor”) at a price of $1,000 per Convertible Debenture Unit.
Each Convertible Debenture Unit will consist of: (i) a $1,000 principal senior secured convertible debenture (each, a “Convertible Debenture”); and (ii) 20,000 common share purchase warrants (each, a “Warrant”) exercisable for 20,000 common shares in the Company (each, a “Common Share”). The Convertible Debentures will mature on the date that is 12 months from the date of issuance (the “Maturity Date”) and shall bear interest at a rate of 12.0% per annum, beginning on the date of issuance and payable in cash on the last business day of each calendar month.
The principal sum of the Convertible Debentures, or any portion thereof, and any accrued but unpaid interest, may be converted into Common Shares at a conversion price of $0.05 per Common Share (the “Conversion Price”), subject to adjustment in the event the Company issues additional stock or convertible instruments at a price lower than the Conversion Price, as per the policies of the Canadian Securities Exchange (the “CSE”). Each Warrant shall entitle the holder to acquire one additional Common Share at a price of $0.06 per Common Share (the “Exercise Price”), subject to adjustment in the event the Company issues additional warrants at a price lower than the Exercise Price, for a period of 24 months from the date of issuance.
The obligations under the Convertible Debentures will be collaterally secured by a General Security Agreement granting a security interest in all the Company’s property and assets. The Company may not issue any securities that rank senior or pari-passu to the Convertible Debentures.
All Convertible Debentures and Warrants issued pursuant to the Offering (including any securities into which they may be converted or exercised) will be subject to a statutory hold period of four months and one day from the date of issuance.
The Offering is expected to close on or about August 18, 2025, subject to satisfactory completion of due diligence, negotiation of definitive documentation, and compliance with applicable securities laws and CSE policies.
The Company will pay the Lead Investor a closing fee in connection with the Offering comprised 4.0% of the gross proceeds arising from orders received from the Lead Investor group in the Offering. The Company has also agreed to reimburse the Lead Investor for reasonable and documented out-of-pocket expenses incurred in connection with the Offering in the amount of up to $25,000 plus applicable taxes and disbursements.
Funds from this debenture will support production needs for an existing order for two Terras from a major construction company and the following objectives:
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Relocate Hybrid’s Terra manufacturing to North America to enhance supply chain efficiency, quality control, and production timelines.
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Advance the development and rollout of connected technology features, set for release across all units in Q4 2025.
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Adopt advanced production and quality control processes to boost efficiency, ensure product consistency, meet regulatory standards, lower costs, and improve margins.
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Expand presence at key industry tradeshows, live demonstrations, and client roadshow events across Canada and the U.S. in Q4 2025.
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Hire two additional sales reps dedicated to key market verticals in Canada and the USA.
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General Working Capital.
About Hybrid Power Solutions
Hybrid Power Solutions Inc. is a Canadian clean energy innovator listed on the Canadian Securities Exchange under the symbol "HPSS." The Company specializes in developing portable power systems that eliminate the need for fossil fuels in off-grid and remote applications. With a focus on environmental responsibility and technological innovation, Hybrid Power Solutions is committed to leading the clean energy transition.
On Behalf of the Company,
Francois Byrne, CEO and Director
For further information, inquiries, or media opportunities, please contact:
Hybrid Power Solutions
E: invest@hybridps.ca
T: 866-549-2743
www.investhps.com
Investor Relations
Dean Stuart
E: dean@boardmarker.net
T: 403-617-7609
Forward-Looking Statements
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by terminology such as "will," "expects," "anticipates," or variations of such words and phrases, or by statements that certain actions, events, or results "will" occur. Forward-looking statements are based on management’s estimates as of the date such statements are made and are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such statements.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
This news release is not for distribution to the United States Newswire Services or for dissemination in the United States.
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