PyroGenesis Announces $4.6 MM Increase in Funding to Transform Quartz into Fumed Silica; Signs $4MM Contract with HPQ Polvere...
July 06 2021 - 7:55AM
PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR)
(NASDAQ: PYR) (FRA: 8PY), a high-tech company (hereinafter referred
to as the “Company” or “PyroGenesis”), that designs, develops,
manufactures and commercializes plasma atomized metal powders,
environmentally friendly plasma waste-to-energy systems and clean
plasma torch products, is pleased to announce today that, further
to its press release dated May 27th, 2021, wherein it had announced
a $700,000 grant from Sustainable Development Technology Canada to
develop a novel production process to transform quartz into fumed
silica, PyroGenesis has now signed a contract for approx. $4MM (the
“Contract”) with HPQ Silica Polvere Inc. (“HPQ Polvere” or the
“Client”), a wholly owned subsidiary of HPQ Silicon Resources Inc
(“HPQ”). This Contract is part of a project, valued for a total of
approx. $5.3 MM. The difference is expected to be funded by an
additional government agency for $630,000 as well as a contribution
by PyroGenesis of $175,000. It is expected that all these amounts
will be paid directly to PyroGenesis.
PyroGenesis has been tasked, over the next 24
months, to design, develop and manufacture downstream business
opportunities by converting quartz to fumed silica, using a novel
one-step plasma-based reactor (the “Reactor”). Fumed Silica is a
thickening agent used in a wide range of applications, such as
paints, cosmetics, coatings, inks and resins. If successful,
PyroGenesis’ innovative green solution would not only be economical
in and of itself, but would also (i) eliminate the toxic
by-products of conventional processes, and (ii) reduce greenhouse
gas (“GHG”) emissions by approximately 90%1. This would be a
significant improvement over the current environmentally damaging
fumed silica production processes, and could become a game changing
process for the industry.
Fumed silica is a white microscopic powder with
high surface area and low bulk density. Its commercial applications
encompass various industries including personal care,
pharmaceuticals, agriculture (food & feed), adhesives,
sealants, construction, batteries and automotive to name a few.
Research2 indicates that the demand for fumed silica is growing at
6% CAGR, with a global addressable market of US$ 1.5 billion in
2016 which is expected to grow to US$ 2.2 billion in 2022. (Please
refer to HPQ press release dated May 4th, 2021 for further
details).The Contract with HPQ Polvere includes the sale of a
provisional patent application (hereafter the “IP”) relating to the
Reactor, for 3.3MM$ and the exclusive use, by HPQ Polvere, of the
IP in the field of fumed silica manufacturing (the “Field”),
together with a 10% royalty on the Client’s future sales
(“Royalty”) (with set minimums never to exceed 100% of revenues).
PyroGenesis retains a royalty-free, exclusive, irrevocable,
worldwide license to use the IP for all activities outside of the
Field. This royalty stream can, at any time, be converted by
PyroGenesis into a 50% ownership in HPQ Polvere.
“This Contract represents another significant
milestone in our relationship with HPQ and, once again, underscores
the many hidden opportunities within this partnership,” said M. P
Peter Pascali, President and CEO of PyroGenesis. “This Contract is
another testament to PyroGenesis’ solid position as an emerging
leader in GHG emissions reduction. In fact, this opportunity is a
natural extension of what is being targeted by the Company, and is
well aligned with environmental initiatives currently taking place
worldwide.”
About PyroGenesis Canada
Inc.
PyroGenesis Canada Inc., a high-tech company, is
a leader in the design, development, manufacture and
commercialization of advanced plasma processes and products. The
Company provides its engineering and manufacturing expertise and
its turnkey process equipment packages to customers in the defense,
metallurgical, mining, advanced materials (including 3D printing),
and environmental industries. 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 Company’s core
competencies allow PyroGenesis to provide innovative plasma
torches, plasma waste processes, high-temperature metallurgical
processes, and engineering services to the global marketplace.
PyroGenesis’ operations are ISO 9001:2015 and AS9100D certified.
For more information, please visit www.pyrogenesis.com.
This press release contains certain
forward-looking statements, including, without limitation,
statements containing the words "may", "plan", "will", "estimate",
"continue", "anticipate", "intend", "expect", "in the process" and
other similar expressions which constitute "forward-looking
information" within the meaning of applicable securities laws.
Forward-looking statements reflect the Corporation's current
expectation and assumptions and are subject to a number of risks
and uncertainties that could cause actual results to differ
materially from those anticipated. These forward-looking statements
involve risks and uncertainties including, but not limited to, our
expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to
research and development, the impact of competitive products and
pricing, new product development, and uncertainties related to the
regulatory approval process. Such statements reflect the current
views of the Corporation with respect to future events and are
subject to certain risks and uncertainties and other risks detailed
from time-to-time in the Corporation's ongoing filings with the
securities regulatory authorities, which filings can be found at
www.sedar.com, or at www.sec.gov. Actual results, events, and
performance may differ materially. Readers are cautioned not to
place undue reliance on these forward-looking statements. The
Corporation undertakes no obligation to publicly update or revise
any forward-looking statements either as a result of new
information, future events or otherwise, 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 NASDAQ Stock
Market, LLC accepts responsibility for the adequacy or accuracy of
this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact:Rodayna
Kafal, Vice President Investors Relations and Strategic Business
DevelopmentPhone: (514) 937-0002, E-mail: ir@pyrogenesis.comRELATED
LINK: http://www.pyrogenesis.com/
___________________1 Based on Internal Calculations (Reviewed by
Government Agency)2 Source Marketandmakerts.com
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