PyroGenesis Announces Debt-to-Equity Conversion of Client Receivable
PyroGenesis has reached an agreement with HPQ Silicon to convert an outstanding liability of $4,941,440 into equity. The conversion will result in PyroGenesis receiving 17,968,873 units at $0.275 per unit, with each unit comprising one common share and one warrant. The warrants allow PyroGenesis to acquire additional HPQ shares at $0.285 within two years.
The companies are collaborating on the Fumed Silica Reactor (FSR) project, where PyroGenesis is developing technology to convert quartz into fumed silica in an eco-friendly single step. The first process material tests are scheduled to begin in January 2025. This initiative aims to repatriate fumed silica production to North America while eliminating harmful chemicals used in conventional methods.
PyroGenesis ha raggiunto un accordo con HPQ Silicon per convertire una passività di 4.941.440 dollari in capitale. La conversione comporterà la ricezione da parte di PyroGenesis di 17.968.873 unità a 0,275 dollari ciascuna, con ogni unità composta da un'azione ordinaria e un'opzione. Le opzioni consentono a PyroGenesis di acquisire ulteriori azioni HPQ a 0,285 dollari entro due anni.
Le aziende stanno collaborando al progetto Fumed Silica Reactor (FSR), dove PyroGenesis sta sviluppando una tecnologia per convertire il quarzo in silice fumed in un singolo passo ecologico. I primi test dei materiali del processo sono previsti per gennaio 2025. Questa iniziativa mira a ripatriare la produzione di silice fumed in Nord America, eliminando allo stesso tempo sostanze chimiche nocive utilizzate nei metodi convenzionali.
PyroGenesis ha llegado a un acuerdo con HPQ Silicon para convertir una obligación pendiente de 4.941.440 dólares en capital. La conversión resultará en que PyroGenesis reciba 17.968.873 unidades a 0,275 dólares por unidad, donde cada unidad consiste en una acción ordinaria y una opción. Las opciones permiten a PyroGenesis adquirir acciones adicionales de HPQ a 0,285 dólares dentro de dos años.
Las empresas están colaborando en el proyecto Fumed Silica Reactor (FSR), donde PyroGenesis está desarrollando tecnología para convertir cuarzo en sílice fumed en un único paso ecológico. Las primeras pruebas de materiales del proceso están programadas para comenzar en enero de 2025. Esta iniciativa busca repatriar la producción de sílice fumed a América del Norte, eliminando al mismo tiempo productos químicos nocivos utilizados en los métodos convencionales.
PyroGenesis는 HPQ Silicon과 4,941,440 달러의 미지급 채무를 자본으로 전환하기 위한 계약을 체결했습니다. 이번 전환으로 PyroGenesis는 각 0.275 달러에 17,968,873 유닛을 받게 되며, 각 유닛은 보통주 1주와 워런트 1개로 구성됩니다. 이 워런트는 PyroGenesis가 2년 이내에 0.285 달러에 추가的인 HPQ 주식을 사도록 허용합니다.
두 회사는 Fumed Silica Reactor (FSR) 프로젝트에 협력하고 있으며, PyroGenesis는 생태 친화적인 단일 단계에서 석영을 연기 실리카로 전환하는 기술을 개발하고 있습니다. 첫 번째 공정 자재 테스트는 2025년 1월에 시작될 예정입니다. 이 이니셔티브는 유해 화학물질 없이 북미로 연기 실리카 생산을 다시 가져오는 것을 목표로 하고 있습니다.
PyroGenesis a conclu un accord avec HPQ Silicon pour convertir une dette de 4.941.440 dollars en capital. Cette conversion entraînera la réception par PyroGenesis de 17.968.873 unités à 0,275 dollars chacune, chaque unité comprenant une action ordinaire et un bon de souscription. Les bons de souscription permettent à PyroGenesis d'acquérir des actions supplémentaires d'HPQ à 0,285 dollars dans les deux ans.
Les entreprises collaborent sur le projet Fumed Silica Reactor (FSR), où PyroGenesis développe une technologie pour convertir le quartz en silice fumée de manière écologique en une seule étape. Les premiers tests de matériaux du processus sont prévus pour janvier 2025. Cette initiative vise à rapatrier la production de silice fumée en Amérique du Nord tout en éliminant les produits chimiques nocifs utilisés dans les méthodes conventionnelles.
PyroGenesis hat eine Vereinbarung mit HPQ Silicon getroffen, um eine ausstehende Verbindlichkeit von 4.941.440 Dollar in Eigenkapital umzuwandeln. Die Umwandlung wird dazu führen, dass PyroGenesis 17.968.873 Einheiten zu 0,275 Dollar pro Einheit erhält, wobei jede Einheit aus einer Stammaktie und einem Warrant besteht. Die Warrants ermöglichen es PyroGenesis, innerhalb von zwei Jahren zusätzliche HPQ-Aktien zu 0,285 Dollar zu erwerben.
Die Unternehmen arbeiten am Fumed Silica Reactor (FSR)-Projekt zusammen, bei dem PyroGenesis eine Technologie entwickelt, um Quarz in rauchige Silica in einem umweltfreundlichen Schritt umzuwandeln. Die ersten Materialtests des Prozesses sind für Januar 2025 geplant. Diese Initiative zielt darauf ab, die Produktion von rauchiger Silica nach Nordamerika zurückzubringen und gleichzeitig schädliche Chemikalien, die in herkömmlichen Verfahren verwendet werden, zu eliminieren.
- Conversion of $4.94M receivable into equity units strengthens balance sheet
- Additional upside potential through warrants at $0.285 per share
- Process material tests for FSR project starting January 2025
- Option to acquire 50% stake in HPQ Silica Polvere
- Conversion of debt to equity at $0.275 per unit may represent a discount to market value
- Four-month hold period restricts immediate liquidity of received shares
- Success of FSR technology remains unproven pending test results
PyroGenesis to receive 17,968,873 units comprised of one common share plus one common share purchase warrant from HPQ Silicon Inc.
MONTREAL, Dec. 19, 2024 (GLOBE NEWSWIRE) -- PyroGenesis Inc. (“PyroGenesis”) (http://pyrogenesis.com) (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY), a high-tech company that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions, which are geared to reduce greenhouse gases (GHG) and address environmental pollutants, announced today an agreement with HPQ Silicon Inc. (“HPQ”) to resolve an outstanding liability of
Under the agreement, the outstanding liability will be converted into 17,968,873 units at a price of
Upon issuance of the units to PyroGenesis, the outstanding liability shall be deemed fully satisfied.
The shares and warrants are subject to a hold period of four (4) months and one (1) day from the date of the issuance, as required under National Instrument 45-102 – Resales of Securities and applicable TSX Venture Exchange policies.
This agreement is subject to standard regulatory approvals including the approval of the TSX Venture Exchange.
PyroGenesis engages with HPQ on a variety of initiatives, and previously announced an intent to exercise its option to purchase
“PyroGenesis and HPQ continue to work together on important projects including the fumed silica reactor initiative,” said P. Peter Pascali, President and CEO of PyroGenesis. “With the first series of process material tests commencing in January 2025, we are excited by what the future holds for the FSR technology and for what we believe will transform fumed silica manufacturing for the better.”
PyroGenesis’ involvement in developing fumed silica from quartz is part of its three-tiered solution ecosystem that aligns with economic drivers that are key to global heavy industry. Fumed silica production is part of PyroGenesis’ Commodity Security & Optimization tier, where the recovery of viable metals and the optimization of production to increase output helps to maximize raw materials and improve the availability of critical minerals. The other tiers are Energy Transition and Emission Reduction, and Waste Remediation.
About PyroGenesis Inc.
PyroGenesis, a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG) and are economically attractive alternatives to conventional “dirty” processes. PyroGenesis has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management, and additive manufacturing. With a team of experienced engineers, scientists and technicians working out of its Montreal office, and its 3,800 m2 and 2,940 m2 manufacturing facilities, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The operations are ISO 9001:2015 and AS9100D certified, having been ISO certified since 1997. PyroGenesis’ shares are publicly traded on the TSX in Canada (TSX: PYR), the OTCQX in the US (OTCQX: PYRGF), and the Frankfurt Stock Exchange in Germany (FRA: 8PY).
About HPQ Silicon
HPQ Silicon Inc. (TSX-V: HPQ) is a Quebec-based TSX Venture Exchange Tier 1 Industrial Issuer.
HPQ is developing, with the support of world-class technology partners PyroGenesis Inc. and NOVACIUM SAS, new green processes crucial to make the critical materials needed to reach net zero emissions.
HPQ activities are centred around the following four (4) pillars:
- Becoming a green low-cost (Capex and Opex) manufacturer of Fumed Silica using the FUMED SILICA REACTOR, a proprietary technology owned by HPQ being developed for HPQ by PyroGenesis.
- Becoming a zero CO2 low-cost (Capex and Opex) producer of High Purity Silicon (2N+ to 4N) using our PUREVAPTM “Quartz Reduction Reactors” (QRR), a proprietary technology owned by HPQ being developed for HPQ by PyroGenesis.
- Becoming a producer of silicon-based anode materials for battery applications with the assistance of NOVACIUM SAS.
- HPQ SILICON affiliate NOVACIUM SAS is developing a low carbon, chemical base on demand and high-pressure autonomous hydrogen production system.
For more information, please visit HPQ Silicon web site.
Cautionary and Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management’s current beliefs, expectations, estimates and projections regarding future events and operating performance.
Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by PyroGenesis as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under “Risk Factors” in PyroGenesis’ latest annual information form, and in other periodic filings that it has made and may make in the future with the securities commissions or similar regulatory authorities, all of which are available under PyroGenesis’ profile on SEDAR+ at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect PyroGenesis. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. PyroGenesis undertakes no obligation to publicly update or revise any forward-looking statement, except as required by applicable securities laws.
Neither the Toronto Stock Exchange, its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) nor the OTCQX Best Market accepts responsibility for the adequacy or accuracy of this press release.
For further information, please contact:
Rodayna Kafal, Vice President, IR/Comms. and Strategic BD
E-mail: ir@pyrogenesis.com
http://www.pyrogenesis.com
FAQ
What is the value of PyroGenesis's debt-to-equity conversion with HPQ Silicon?
What are the terms of the warrants received by PyroGenesis (PYRGF) in the HPQ deal?
When will PyroGenesis begin testing the Fumed Silica Reactor (FSR) project?
What is the hold period for the shares and warrants received by PyroGenesis (PYRGF)?