acceleration of warrants MONTREAL, March 15, 2021 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (https://pyrogenesis.com) (TSX: PYR) (NASDAQ: PYR) (FRA: 8PY), (the “Company” or “PyroGenesis”), a Company that designs, develops, manufactures and commercializes plasma atomized metal powder, environmentally friendly plasma waste-to-energy systems and clean plasma torch products, today announced that it has elected to exercise its right under the common share purchase warrant indenture (the “Warrant Indenture”) dated November 10, 2020, between the Company and AST Trust Company (Canada) (the “Warrant Agent”), to accelerate the expiry date of the common share purchase warrants of the Company (the “Warrants”) issued under the Warrant Indenture. The Warrants were issued on November 10, 2020, in connection with the bought-deal short form prospectus offering of units of the Company, of which each unit was comprised of one common share of the Company and one-half of one Warrant.
Under the Warrant Indenture, the Company has the right to accelerate the expiry date of the Warrants to the date that is 30 days after delivery of a notice (the “Acceleration Notice”) to the holders of Warrants and the Warrant Agent confirming that the volume weighted average trading price of the Company’s common shares on the Toronto Stock Exchange is greater than $6.75 for 20 consecutive trading days (the “VWAP Requirement”). The VWAP Requirement was met as of close of business March 10, 2021. The Warrants will now expire at 5:00 p.m. (Toronto time) on April 14, 2021 (the “New Expiry Date”). Warrants that have not been exercised prior to the New Expiry Date will expire unexercised and will automatically be void and of no effect whatsoever. The Company has delivered the Acceleration Notice as required by the Warrant Indenture.
Each Warrant entitles the holder thereof to purchase one additional common share of the Company at an exercise price of $4.50 prior to the New Expiry Date. If all the Warrants were exercised as of the date hereof, the gross proceeds to the Company would be approximately $5.2 million. As of the date hereof, assuming all the Warrants were exercised, the Company’s cash on hand would be approximately $33.5 million.