Placement and Proposed Rights Issue to Raise up to $3.6m

• Placement of $680k at $0.022 per share to new strategic investors
• Non-renounceable rights issue to raise up to $2.92m at $0.022 per share
• Rights issue partially underwritten to $1.2m, with directors participating

HITIQ Ltd (ASX: HIQ) is pleased to announce a capital raising of up to approximately $3.6 million (before costs) through a placement to sophisticated professional investors and a non-renounceable rights issue to eligible shareholders. The company has completed a $680,000 placement at $0.022 per share, representing a 12% discount to the closing price and 28.1% discount to the 30-day VWAP. The placement also includes one attaching option for every two shares issued, exercisable at $0.022 and expiring on 30 December 2028. HITIQ is also undertaking a non-renounceable rights issue on the same terms as the placement to raise up to $2.92 million. The rights issue is partially underwritten to $1.2 million, with all directors intending to participate and the majority also participating as sub-underwriters to a total of $67,000. The funds raised will be used to expand manufacturing capacity globally, drive expansion in the USA, enhance product lines, invest in business development and marketing, and support continued R&D.