SRTX, the Montréal-based textile manufacturing company known for its Sheertex rip-resistant tights, has secured US$40 million in new equity financing. The round is led by existing investors H&M Group, Export Development Canada (EDC), Business Development Bank of Canada (BDC), and Investissement Québec (IQ). As part of the deal, founder and CEO Katherine Homuth will step down, and the company’s valuation is set to decrease from US$325 million to US$135 million post-money. The financing includes a “pay-to-play” structure, incentivizing existing investors to maintain their pro rata shares or face significant dilution. The funds will support SRTX’s efforts to achieve profitability by late 2025 amid challenges such as impending U.S. tariffs and a shift from direct-to-consumer to wholesale operations.