CoTec Posts C$4.2 Million Q3 Loss as U.S. Magnet Project Advances

CoTec Holdings Corp. recorded a C$4.2 million third-quarter loss as its U.S. magnet venture delivered initial samples to potential customers and moved equipment into a Texas facility.

The loss covered the three months ended Sept. 30. General and administrative expenses and professional fees accounted for C$1.2 million. Most of the remaining loss came from noncash accounting items, including losses from associates and joint ventures, finance expenses and share-based compensation.

For the first nine months of 2026, CoTec recorded a net loss of C$14.5 million. Cash used in operating activities before changes in noncash working capital was C$4 million.

HyProMag USA LLC supplied its first magnet samples to potential U.S. customers during the quarter. After Sept. 30, major process equipment was delivered to the venture’s facility in Northlake, Texas. CoTec continues to target commissioning of magnet cutting and finishing operations there in the first half of 2027.

At the end of September, CoTec had C$9.9 million in cash and equivalents, C$500,000 in restricted cash and C$5.7 million in working capital. Those figures preceded the final closing of its C$20 million convertible debenture financing. CoTec completed the final C$7.9 million closing on Oct. 15, bringing the financing total to C$20 million.