Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

PyroGenesis Inc T.PYR

Alternate Symbol(s):  PYRGF

PyroGenesis Inc., formerly PyroGenesis Canada Inc., is a Canada-based high-tech company. The Company is engaged in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG). The Company has created proprietary, patented and advanced plasma technologies that are used in four markets: iron ore palletization, aluminum, waste management, and additive manufacturing. It provides engineering and manufacturing expertise, contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, additive manufacturing (including 3D printing), oil and gas, and environmental industries. Its products and services include plasma atomized metal powders, aluminum and zinc dross recovery, waste management, plasma torches, and innovation/custom process development. It offers PUREVAP, which is a high purity metallurgical grade silicon and solar grade silicon from quartz.


TSX:PYR - Post by User

Bullboard Posts
Post by MidtownGuyon Nov 12, 2020 11:53pm
950 Views
Post# 31892942

Length of Negotiations

Length of Negotiations On another board, we were discussing the negotiations, now that we know it's potentially about leasing, and it all started to make so much more sense why the process has been drawn out.

Consider the things they had to discuss and negotiate:

Price of product
Discount on price (for volume / # of units)
Term of lease (5 years, 10, 10?)
Currency hedging (long leases over years allow for adjustments to overall cost, as currency fluctuates during that time)
APR
Payment schedule
Downpayment
Early payment terms and penalties
Etc etc.

During all that, both sides are trying to eke out more margin, going back and forth on tiny or large percentages and combinations.

They also likely brought in equipment lease specialists and lawyers, as it's so complex.

They also negotiated delivery timelines, install, maintenance, etc.

Insurance, actual ownership (whether PYR still owns the product during leasing, etc).

A service agreement.

A buyout, if any.

Whether it's a pure lease and return, or a lease to own.

A roll-over clause, after lease term 1 has ended, replacing old tech with new tech and new terms.

Most importantly, they had to do all of this WITH TWO COMPANIES:
1/ the client
2/ the equipment leasing / vendor financing company (there's no way PYR will finance this; a third party will do it, like ENC, Meridian OneCap, BDC, RBC, etc.).

The variations are almost infinite. It's a hell of a process and helps to understand why this has taken as long as it has.

The good news is, future contracts will take less time, having gone through the process once.

Patience my friends, it's very close.
Bullboard Posts