- CoTec Holdings Corp. (CTH) reported a comprehensive loss of $1.7 million in Q1 2025.
- The HyProMag USA project, a joint venture, made significant progress with reduced CO2 footprint verification.
- CoTec secured additional funding of $2 million and amended a loan agreement to increase available funds by $2.5 million.
CoTec Holdings Corp. revealed its financial performance for the first quarter of 2025, reporting a comprehensive loss of $1.7 million. This deficit was largely attributed to general and administrative (G&A) expenses totaling $709,000, along with non-cash foreign exchange losses on equity investments and share-based compensation amounting to $200,000 and $269,000 respectively.
Significant strides were made in the joint venture HyProMag USA project, which is focused on rare earth magnet recycling and manufacturing. The project successfully expanded its scope to include three hydrogen processing of magnet scrap (HPMS) vessels. This expansion was fortified by an ISO-compliant study that confirmed a remarkably low carbon footprint of 2.35 kg CO2 equivalent per kg of NdFeB.
During the quarter, CoTec Holdings (CTHCF, Financial) announced the acquisition of new technologies, including Multi-Gravity Technology aimed at recovering ultra-fine iron and manganese. In collaboration with McGill University, CoTec initiated the WaveCracker™ project to explore the use of microwave technologies to enhance metal recovery processes.
CoTec also secured additional financial support by drawing down $2 million from the Kings Chapel Convertible Loan Agreement. Furthermore, an amendment to this agreement increased the available funding by an additional $2.5 million. These efforts reflect CoTec's strategic maneuvers to strengthen its financial position and support ongoing projects.
Despite these advancements, CoTec acknowledged a disconnect between its share price and the intrinsic value of its assets. The company is actively engaging in investor outreach programs to bridge this gap and enhance market valuation.
