Hot Chili Limited announced a private placement of 29,860,000 new fully paid ordinary shares at a price of AUD 1 (CAD 0.89) per Share for gross proceeds AUD 29,860,000 (CAD 26,575,400) on May 1, 2024. The shares are offered to institutional, professional, and other investors. The Shares under the Placement may also be offered in the United States pursuant to available exemptions from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws, and in those other jurisdictions outside of Australia, Canada and the United States provided it is understood that no prospectus filing or comparable obligation, ongoing reporting requirement or requisite regulatory or governmental approval arises in such other jurisdictions.

The Placement remains subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. At the closing of the Placement, the Company will pay to the Agents a cash commission equal to 6% of the gross proceeds of the Placement. The transaction is expected to close on May 9, 2024.