PyroGenesis Inc T.PYR

RE:RE:RE:RE:Does anyone here even know what it means?

[BCONTVentures]

And some great points on HPQ Silicon's/PyroGenesis' Fumed Silica Reactor (FSR):

@SabbathAs per the updated HPQ POLVERE TECHNICAL AND ECONOMIC STUDY

- Capex around the US$ 10[2] per Kg of annual capacity versus the US$ 146 per Kg of annual capacity for traditional producer, reducing the capital cost to enter the Fumed Silica market by about 93% [3].

- Potential European Carbon advantage between 630€ to 1,350€ per tonne sold [8].

“The Fumed Silica Reactor technology has the potential to change Fumed Silica manufacturing for the better and HPQ Silica is uniquely positioned to be the sole provider capable of supplying the materials required to meet the increasing demand for low carbon Fumed Silica products,” added Mr. Tourillon. “This demand is anticipated to necessitate the deployment of numerous 1,000 TPY Fumed Silica Reactors in the future." $PYR

@SabbathBriefly, couple things people ain't understanding...

1) Fumed Silica top players are also Metallurgical Silicon manufacturers. Fumed silica is an end product / by product from metallurgical silicon/ high purity silicon.
2) FSR uses quartz to produce fumed silica, devauling & eliminating the use of Silicon Tetrachloride. This will greatly affect, increasing the costs of all silicon products before fumed silica production.
3) Once HPQ FSR affects these markets it will create a bigger demand for QRR All of this will have huge pressure on Silicon manufacturers and thier clients. The success of the FSR pilot plant will be the turning point for them... $PYR

@Sabbath@standingonbusiness the ONLY logical explanation is what @JetsFanYEG said.... From the Agoracom video(May30th interview, 17min mark)............... there is one thing I picked up that is probably important. Since there will be negotiations and NDAs with big companies involved, under the old structure (PYR royalty only) $HPQ as the sole owner of Polvere wouldn’t have been able to discuss potential deals as easily with $PYR. Now with PYR as a 50% owner of Polvere any discussions on JVs or licensing or spin-off sales or anything like that will involve both HPQ and PYR. PYR knows this will be a massive catalyst very soon with crazy margins so they want to be at the bargaining table for any major deals that are to be had. Better to convert ownership now and be heavily involved. This is great and exciting news!

BCONTVentures wrote:


Well said Melida and skier59.  And this debt to equity conversion has PyroGenesis once again becoming a near 10% equity stakeholder in HPQ Silicon.  And these shares/warrants have a 4 month hold, and both PYR/HPQ are very close to the Fumed Silica Reactor (FSR) pilot plant becoming fully operational and with the first offtake agreement in sight.

PyroGenesis has a vested interest in HPQ Silicon's success (both with the FSR and QRR).  And, PYR chose shares (instead of cash payment) from HPQ, indicating significant increases in HPQ's value.

And from the news release:

“Clearing these outstanding liabilities, under some highly supportive terms, will not only strengthen our fiscal 2024 balance sheet but also resolve points of contention raised by potential financial partners or future offtake agreement counterparts,” said Bernard Tourillon, President & CEO of HPQ. “This agreement highlights how HPQ and PyroGenesis collaboratively develop solutions as we work to disrupt the fumed silica market by delivering a cost-effective, high-efficiency solution that redefines industry standards.”

And from @ordos (from the recent Agoracom HPQ Silicon interview):

Shares for debt

================================

- This debt has been on Pyrogenesis's books since 2022

- End of the fiscal year. A lot of financing decisions are made based on audited financial statements. If we waited to settle the debt after new year when we have fumed silica news, etc, possibly higher share price, we would still have shown negative working capital, negative equity on our financials. That's a negative when you talk to investors. New investors interested in investing money because they really like what you are doing, do not want to put their money to pay off your old debt. It wasn't making sense having this debt on the books for another 12 months

- Pyrogenesis also wanted to clear out their 3 year old account receivable which has had zero value all this time

- It was also a contention point that was already brought up by entities interested in financing HPQ Silicon, it's not something that HPQ Silicon was anticipating ahead of time and went ahead to resolve it

- Peter never wanted to sell the previous HPQ shares Pyrogenesis was holding, but they had to do it. Now with this settlement they are once again a large shareholder of HPQ Silicon, which is very good from strategic point of view

 

Fumed silica

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- Bernard had a tour of the pilot plant and it's ready to go starting January, 2025. Bernard hoped it would be earlier, but those are the R&D timelines

Melida wrote:

Skier is right. Especially in relation to HPQ.

I figure that owing 5 million bucks to Pyr was making HPQ customers hesitant to put cash up front to facilitate HPQ product development as part of a possible off take.  

And to address a poster's comment, I agree, off takes are "just" contracts. In this instance the contract effectively would be a financing/purchase agreement.  It's the finance angle that made it a priority for the HPQ debt to be paid off by the issuance of equity to Pyrogenesis. No way I would advise a client to off take if supplier (HPQ) owed 5 million to a third party.  So, the debt to equity is a big deal, over and above being a cool investment for Pyr. 

Time will tell but as I've already said, the rocket is  cleared for take off. I'm looking forward to 2025