PyroGenesis Cancels Previously Disclosed Non-Military Land-Based Waste Treatment System Sale
MONTREAL, Oct. 17, 2019 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (https://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the "Company", the “Corporation” or "PyroGenesis") that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, today announced that further to its press release dated June 20th, 2019, with respect to the $3.64M sale of a Non-Military Land-Based Waste Treatment System, the Client has not complied with the terms of the Sale, thus the Company has decided, after numerous extensions, to terminate the Contract.
According to the terms of the Sale, the Client was obligated to pay a total of 40% in down payments (approx. $1.46M) before July 31st, 2019. After many deadline extensions provided by PyroGenesis to cure this default, and numerous failures by the Client, the most significant of which was to not pay on time, the Sale (including the limited territorial exclusivity agreement) is now terminated. To date, the Client has paid approx. $839,370 and these payments have been retained by PyroGenesis pursuant to the General Terms and Conditions of the Sale.
“Regretfully in the course of doing business, this type of event happens at times. However, PyroGenesis secures itself from these risks by having payments managed in such a way that our projects remain cash flow positive throughout their completion. The amounts received to date will be accounted for in Q3-2019,” said Mr. P. Peter Pascali, President and CEO of PyroGenesis. “Furthermore, PyroGenesis is actively reviewing the judicial and extra-judicial rights and recourses available to it, so that it may protect and safeguard its rights and interests with respect to the Client’s failure to fulfill its contractual obligations. On a brighter note, we will be re-engaging with other potential clients who were interested in this product line, but with whom we could not continue discussions due the Terms and Conditions under the Contract which we have just terminated.”
Of note, PyroGenesis’ land-based waste system transforms waste to syngas, a gaseous fuel which can then be used to make electricity, heat, or fuels, as required by the end-user. Using PyroGenesis’ system, the inorganic fraction of the waste is converted into a glassy slag which is inert, non-toxic, and has been demonstrated to be suitable as a building material, and even jewelry.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.