PyroGenesis Inc T.PYR

Clarification

[WealthBuilder99]

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.

[developbc]

From Q3 Financials PYR owns: Shares in HPQ Silicon:  25,074,200 Warrants in HPQ:  27,344,600  

[TITANIUMJOE]

Oh Midtown guy? would you mind adding to this and confirming this sounds right. He's likely the only other person on here that can confirm to this depth of mathematics and knowledge besides you. You two are the big brains on here  But Uncleron is always right and I'm always right here listening  

[developbc]

Hi titaniumjoe not sure which numbers you like to confirm but mine was from page 10 from the Q3 2020 Financials...good to double check as facts are what's of the highest importance.  The other posters numbers seem right off the top of my head  :)  https://www.sedar.com/CheckCode.do

[TITANIUMJOE]

Not suggesting your numbers are wrong, more looking for further breakdown or explanation on the percentages. Are you saying if I had one share of each company that that PYRO share earns more than the HPQ share based on HPQ Nano business?

[developbc]

Hello again actually I kind of know what you were getting at. Because Pyro has a significant ownership stake and will enjoy the economic benefits of hpq plus the 10% royalty from QRR will remain even after the 10% royalty from the NiSR is  converted to 50% ownership stake.  Until we see the actual margins on QRR no one can really answer that question. But it's a safe bet to invest in

[JetsFanYEG]

this is the way I interpret it, royalties are usually paid off the top, based on the sell price not profit. So if PYR doesn't exercise the ownership in Nano they would get 10 cents for every dollar of Nano sales Plus and extra 10 cents from HPQ (not Nano) for the HPQ royalty (not sure on this one if they have an agreement that Nano sales don't count as HPQ sales as well. Then if Nano is

[TITANIUMJOE]

No worries. I have shares in both companies. It was more out of curiosity. I really enjoy reading your posts. Please do continue to share your knowledge. Uncleron is always right and I'm always right here watching  

[developbc]

That's great titaniumjoe.   Btw with your name handle..you must be very excited about Pyrogenesis 3D POWDERS NexGen. With recent accreditation from a major aerospace company this division is going to do spectacular.  It's really mind boggling that there is like 5-6 divisions that can and will easily morph Pyrogenesis into stratosphere each on it's own.    Long and

[TITANIUMJOE]

Yes developbc I'm super stoked about Pyro and all their lines of business. My name comes from my own business. Pyro first came onto my radar when I read the NR years ago that they had successfully manufactured 6AL4V Titanium 3D printing powder. My business supplies titanium tubes, sheets, bars etc to machine shops and manufacturers. I saw Pyro as a threat to my own business thinking soon my

[developbc]

Awesome Joe.  I'm super excited about 3D POWDERS as well..NexGen is going to be incredible.  In meantime DROSITE and TORCHES divisions are equally exciting that can really scale up fast in the next 12-24 months.    PUREVAP NANO  NSiR is going to be also spectacular.  Can you imagine as all the Pyrogenesis divisions lift off....oh wait that's exactly what Pete

[WealthBuilder99]

Yes. Both companies own 50% of HPQ Nano. So assuming all options and warrants are exercised for both companies: PyroGenesis has about 174.8 million shares outstanding, while HPQ has 344.9 million. So 1 Pyro share is roughly equivalent to 2 shares of HPQ (1.97 to be precise, as far as exposure to HPQ Nano is concerned). In other words, HPQ has roughly twice the total amount of shares outstanding

[beachbuminMexic]

And that comprehensive income just went up $11 million today....Beachbum

[TITANIUMJOE]

Thanks wealthbuilder. I sure do appreciate all you guys taking your time to educate us other shareholders. It's valuable information and I enjoy reading posts like this! when you aren't sure which company to buy, buy into both. That's what I did. Uncleron is always right and I'm always right here watching, reading, listening, learning  

[bcsc]

For those whose eyes glaze over when there are that many numbers on the page, does it not come down to a question of margins; which is preferable, 10% of gross or 50% of net HPQ Nano sales? 

[TITANIUMJOE]

Yeah I guess I'm looking for confirmation on wealthbuilders math.