PyroGenesis Inc T.PYR

Nasdaq qualification is met

[MidtownGuy]

PYR does indeed qualify right now for NASDAQ uplisting based on the formal rules. Explanation below.

By the way, the official rules and criteria are not that hard to find, so it's exasperating that anyone would ask that on here rather than merely look it up. It takes less than 5 minutes to look it up and read it all. Here are the formal rules:

https://listingcenter.nasdaq.com/assets/initialguide.pdf

To explain how they qualify:

There are three tiers via which you can apply and eventually be listed:
The Nasdaq Global Select Market
The Nasdaq Global Market
The Nasdaq Capital Market.

For each, applicants must satisfy certain financial, liquidity and corporate governance requirements.

At the current point in time, due to their size/earnings/assets/etc, PYR seemingly best meets the third tier, "Nasdaq Capital Markets".

ALL TIERS initially require a USD$4 share price to qualify.

BUT the "Nasdaq Capital Market" tier allows the ability to meet "alternative criteria" if the company does not have the USD$4 share price.

Those alternative criteria are:
(i) average annual revenues of $6 million for three years, or
(ii) net tangible assets of $5 million, or
(iii) net tangible assets of $2 million and a 3 year operating history

1) PYR cannot meet the average annual revenues of $6MM for three years (they surpassed it in 2020, but 2019 was $4.8MM and 2018 was $5.0MM)

2) PYR CAN meet the net tangible asset criteria.

Net tangible assets (NTA) is calculated as totals assets minus intangible assets minus liabilities.
Historically, PYR's net tangible assets (NTA) have been slightly in the negative.

But thanks to their strategic investment in everyone's favourite little quebec silicon company HPQ, PYR's NTA has swung into positive territory, big time

From the Q3 balance sheet:

Total assets: 39,738,377
(thanks to the strategic investment increase of 23,539,814 from owning HPQ shares)

minus Intangible assets: 910,034

minus Liabilities: 16,231,974

= 22,596,369 net tangible assets.

So PYR does indeed already qualify for NASDAQ listing without having to reach the $4 threshold.

Finally, PYR could also very easily still reach the USD$4 threshhold ANYWAY, rendering this alternative criteria not required.

[pjecan]

Thanks MidTown. I think you explained all this sometime ago but there is non so deaf as those that won't hear.

[MidtownGuy]

Actually, someone had mentioned on here or another board that PYR's net tangible assets were in the negative and I took it that face value rather than investigating myself (which I shouldn't have done -- lesson learned), so I also assumed PYR needed the USD$4 SP. I'm glad I checked.

[fdfd12]

Wouldn't it be better if they needed $4? Then they would have pushed up the price.

[MidtownGuy]

Both can be true. They can still sign a contract and meet the USD$4 minimum as well, and not have to worry about alternative criteria. Still time. Gives additional options, and less chance of a uplist delay, is the good news.

[Thinkbigsti69]

Thanks MidtownGuy, you are the best!