WealthBuilder99 wrote: For everyone's understanding (including my own, and to make sure I have this straight) note: please correct me if I am wrong on my interpretation.
PyroGenesis owns approx 15% of HPQ Silicon (assuming exercise of warrants) + a 10% royalty stream on gross sales, and separately a 10% royalty stream of HPQ Nano which can be converted into a 50% of equity stake of HPQ Nano whenever Pyro sees fit. Note: HPQ Nano is a subsidiary of HPQ Silicon.
I believe as far as accounting goes, upon conversion, 50% of profits/loss associated with HPQ Nano will be reflected on Pyro's income statement, while only changes in market value of HPQ Silicon will show up in Pyro's statement of 'Comprehensive Income'
So the Purevap QRR would fall under HPQ Silicon(?) and provide feedstock (metallurgical grade silicon) to the Purevap SiNR, which falls under HPQ Nano.
The Purevap QRR is the Gen3 machine spoke of coming online a few months back, and the Purevap SiNR is the new gen1 machine being commissioned this month, correct?
So if I have this straight Pyro will control about 15% of HPQ Silicon, plus receive a 10% royalty on gross sales, and separately own 50% of HPQ Nano and all associated profits (which would come from only product derived from the Purevap Si Nano reactor)
Assuming the above is correct, one effectively gets more exposure to HPQ Nano through owning Pyro (because it is also a large shareholder of HPQ Silicon, and receives royalties), and in addition, for roughly 3x the price, gets exposure to all of Pyros business lines as well.
Note: 1 share of Pyro = 2 shares of HPQ Silicon on a % ownership basis (HPQ has roughly 2x the total number of shares outstanding fully diluted)
I welcome people to point out any errors in interpretation or analysis. Thanks in advance.