Hertz Energy Insider Coloured Ties Subscribes for $500,000 of Private Placement Units

Hertz Energy Inc. said Coloured Ties Capital Inc. has agreed to subscribe for up to 2,777,777 HD Units at $0.18 per HD Unit, for gross proceeds of up to $500,000, as part of the company's previously announced non-brokered private placement of up to $1.6 million. TradingView published the announcement on October 15, 2026.

Coloured Ties Joins the Hertz Energy Offering

Coloured Ties currently holds 1,176,300 common shares of Hertz Energy, about 6.21% of the issued and outstanding common shares. Assuming the offering completes as announced, Coloured Ties is expected to hold 3,954,077 common shares, roughly 14.96% on a non-diluted basis and about 23.05% on a partially diluted basis assuming exercise of the Warrants in the HD Units it subscribed for and no other issuances. The offering will not result in a change of control.

Kal Malhi, chief executive officer and a director of Hertz Energy, is also chief executive officer and a director of Coloured Ties Capital and beneficially owns, directly and indirectly, about 25.6% of Coloured Ties' outstanding common shares. Malhi declared his interest and abstained from voting on the approval of Coloured Ties' participation. Coloured Ties is a related party under MI 61-101 because Malhi and his spouse together beneficially own, or exercise control or direction over, more than 50% of its outstanding common shares. Hertz Energy is relying on the exemption from the formal valuation requirement in section 5.5(a) and the exemption from the minority shareholder approval requirement in section 5.7(1)(a), on the basis that neither the fair market value of the securities nor the consideration exceeds 25% of the company's market capitalization. Coloured Ties said on August 25, 2026 that it will rely on Coordinated Blanket Order 51-933 to move to semi-annual financial reporting, according to Stock Titan.

Hertz Energy's Funding Record

According to akta.pro company records, Hertz Energy has six funding rounds on record and total funding of $3.9 million. The records list a post-IPO equity round of $2.2 million in September 2026, a post-IPO equity round of $1.5 million in February 2026, a post-IPO equity round of $304,845 in December 2025 and a private equity round with one investor in January 2024. The same records show a fully diluted market capitalization of $5.2 million based on the capital structure as of March 30, 2026, following the closing of a $1 million financing.

Work at Lake George Before the Raise

Hertz Energy announced on July 16, 2026 the completion of a high-resolution airborne magnetic and VLF-EM survey over its 100%-owned Lake George Antimony-Tungsten-Gold Project in New Brunswick, covering 1,194 line-kilometers across 56.66 km² between June 21 and June 25, 2026, according to Stock Titan. The same outlet reported that Hertz Energy advanced the Lake George Antimony-Tungsten Project and summarized its lithium project on July 16, 2026.

Closing Conditions for the Placement

Completion of the offering remains subject to conditions including receipt of all necessary regulatory approvals, including final approval of the Canadian Securities Exchange. All securities issued under the offering, and any Warrant Shares issued on exercise of the Warrants, will be subject to a statutory hold period expiring four months and one day from the date of issuance.