When an emerging technology company quietly secures a larger slice of the engine driving its future, it can mark a seismic shift in long-term value creation.

In this case, HPQ Silicon Inc. is lifting its stake in its French partner Novacium SAS by another 8.4 percentage points, taking ownership from 28.4% to 36.8% through an all-share deal valued at:

• C$4,033,425 / EUR 2.5 million

For a portfolio spanning silicon anode batteries, autonomous hydrogen, and waste-to-value technologies, this higher stake deepens HPQ’s claim on a multi-platform energy-transition business built in Europe.

The valuation is unchanged from HPQ’s 2025 step-up, but the underlying technology set and commercialization visibility are not. And that’s where the leverage lies.

WHAT YOU NEED TO KNOW

• Stake Jump: HPQ is acquiring 84 additional Novacium shares, raising ownership from 28.4% to 36.8% for C$4,033,425 (EUR 2.5M), at the same implied ~EUR 30M valuation used in February 2025.

• Share Currency: Consideration is 22,407,916 HPQ common shares at C$0.18, representing roughly 5.2% dilution in exchange for an 8.4% incremental equity stake. All shares are locked up for four months and one day.

• Platform Power: Novacium’s portfolio spans:
  • Silicon-based anode materials
  • Non-electrolyser autonomous hydrogen generation
  • Circular black-dross-to-value processes
• 2025 saw patents filed, GEN3 batteries surpass 1,000 cycles, and strategic collaborations initiated.

• Global Upside: Beyond HPQ’s exclusive North American licenses, the larger equity position increases HPQ’s participation in international revenues and royalty streams tied to Novacium’s technologies.

• Capital Discipline: The deal is arm’s length, subject to TSX Venture Exchange and regulatory approvals, and preserves HPQ’s cash while maintaining its renewed option framework to further increase ownership over the next four years.

STRATEGIC IMPLICATIONS

For decades, IP-heavy energy-transition platforms have created most of their value in private structures or offshore vehicles, leaving public-market investors with indirect or limited exposure.

Legacy models often:

• Fragment licensing across regions
• Misalign founders and partners
• Force public partners to fund R&D without proportionate ownership

That structure can work when technologies are speculative, but becomes a liability once platforms start to de-risk and commercialization paths come into focus.

Novacium Is Built Differently

Novacium is an IP and execution engine advancing three interlocking pillars:

1. Silicon anode materials
2. Autonomous hydrogen systems
3. Circular waste-to-value processes

All rooted in silicon and battery know-how.

In 2025:

• GEN3 18650 cells using Novacium’s silicon-based anodes retained 80%+ capacity after 900–1,000 cycles
• Delivered roughly 30% more cumulative energy versus graphite
• New patents were filed on:
  • Black-dross processing
  • Advanced cathode materials

HPQ’s move to increase its equity stake at the same ~EUR 30M valuation effectively buys more of that de-risked portfolio at last year’s price.

TIMING MATTERS

As Novacium ramps its brand presence in Europe, pursues non-dilutive EU funding, and engages strategic partners under NDA, the risk grows that outside capital could dilute HPQ’s participation if its stake remained static.

By moving now, and paying in shares instead of cash, HPQ:

• Secures a stronger economic and governance position
• Preserves balance-sheet flexibility
• Maintains momentum across its other pillars, from fumed silica to high-purity silicon

In markets where batteries, hydrogen, and circular processes are converging into multi-billion-dollar verticals, HPQ is tightening its grip on the European engine underpinning much of its future pipeline.

CEO BERNARD TOURILLON

“This isn’t a tactical tweak; it’s a disciplined capital allocation decision. We’re using shares to buy a bigger piece of a platform that’s already de-risking and starting to blossom, without touching our cash. It moves us from just licensing North America to having a much larger claim on value creation across every geography as Novacium’s technologies go to work.”

INVESTOR TAKEAWAY

HPQ is effectively trading 5.2% dilution today for a meaningfully larger stake in an asset whose IP, patents, and early battery and hydrogen results suggest far greater optionality than its unchanged ~EUR 30M valuation implies.

This transaction:

• Consolidates HPQ’s economic participation in Novacium’s global commercialization
• Reduces the risk of fragmented IP decisions
• Preserves cash for core project execution across all pillars

For investors, this looks less like a one-off corporate reshuffle and more like HPQ’s Google-buys-YouTube moment, a deliberate move to own more of the platform that could power its long-term energy-transition growth.