The Globe and Mail reports in its Tuesday edition that SRTX is seeking $40-million in financing and is offering existing investors a choice: invest more funds or face dilution of their interests (all figures U.S.). The Globe's Sean Silcoff writes that this proposal was outlined in a term sheet sent to investors of the textile company, known for its rip-resistant Sheertex tights made from bulletproof vest material. Last week, existing investors H&M Hennes & Mauritz and three Crown corporations -- Export Development Canada, Business Development Bank of Canada and Investissement Quebec -- agreed to co-lead a $40-million equity financing for SRTX. This deal would reduce SRTX's value to up to $135-million from $350-million in 2022. The term sheet, obtained by The Globe, reveals that H&M, EDC and IQ have committed to invest $6-million each, while BDC has pledged $3.5-million. A condition, however, for the financing is that SRTX must receive a full $40-million of contractually committed equity for the deal by next week, meaning that existing or new investors must agree to invest another $18.5-million between them. SRTX products are stocked by H&M, Costco, Walmart, Holt Renfrew, Macy's and Kim Kardashian's SKIMS banner.