WPRT: Announces Registered Direct Offering of Common Stock and Concurrent Issuance of Warrants

Research evidence excerpt

WPRT: Announces Registered Direct Offering of Common Stock and Concurrent Issuance of Warrants

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Christopher Dendrinos, CFA (Analyst)

Laura Deng (Senior Associate)

June 22, 2026

Westport Fuel Systems Inc.

Announces Registered Direct Offering of Common Stock and Concurrent Issuance of

Warrants

NASDAQ: WPRT | USD 2.26 | Sector Perform | Speculative Risk | Price Target USD 1.75

Sentiment: Neutral

Our view. Proceeds from the transaction put the company in a stronger financial position and provides additional visibility as

WPRT continues to pursue growth opportunities within the Cespira JV. The issuance of ~4.85mm shares represents ~28% of current

shares outstanding and the concurrent warrant issuance gives holders the option to purchase up to an additional ~4.85mm shares

at $2.06 (additional potential gross proceeds of $10mm). At 1Q26 WPRT had a cash balance of ~$24.5mm. On June 18, WPRT

announced that its JV and Volvo signed a development agreement to finalize the integration and commercialization of Cespira’s

HPDI fuel system technology to enable Volvo's 13-litre engine to run on hydrogen. Volvo is currently in on-road testing.

WPRT announces $10mm registered direct offering and concurrent private placement. This morning WPRT announced the sale

of 4,854,369 common shares (or pre-funded warrants as an alternative) at $2.06 per share and in a concurrent private placement,

warrants to buy another 4,854,369 shares, priced at the market at $2.06 per share as well. Gross proceeds from the offering are

$10mm and if the warrants are exercised, the company would receive additional gross proceeds of ~$10mm. The warrants are

immediately exercisable and will expire two years following the date of issuance.