RE:Precarious financial position ... Payments for Outstanding Major Receivables: The Company remains in continuous discussions with Radian Oil and Gas Services Company regarding the outstanding receivable of approximately US$8.0 million under the Company’s existing $25 million+ Drosrite™ contract. As previously announced, PyroGenesis agreed to a strategic extension of the payment plan, by the customer and its end-customer, geared to better align the pressures on the end-user’s operating cash flows created by increased business opportunities.
These discussions are very positive, both in regards to the ongoing payment plan, and in regards to a potential substantial new order of additional Drosrite™ systems, as the client’s cash flow pressures and their new business opportunities move closer to resolution.
OTHER NEWS: HPQ NEW INTELLECTUAL PROPERTY ACQUIRED FROM PYROGENESIS
As disclosed in our June 27, 2023, release and in our most recent Management Discussion and Analysis reports, HPQ has acquired a new Intellectual Property (IP) from PyroGenesis for $3,600,000, pertaining to a "Low Carbon Emission Process for the production of Silicon."
PyroGenesis and HPQ are still negotiating a complementary agreement focusing on the research and development phases necessary for implementing this IP. As a result, the parties have signed on July 11, 2023, an Addendum to the original agreement pushing back the in-cash payment of $3,600,000 date from no later than by June 30th, 2023, to no later than by December 31st, 2023. The effective date of the Addendum is June 30, 2023