Further to the Press Release dated April 29th, 2019, the company has been awarded a contract of approximately $20M (first year revenues), plus a net present value (using a 5% discount rate) of all subsequent year’s revenues of $35M, giving the Contract a total value of over $55M.
Peter Pascali, President and CEO of PyroGenesis joins us to discuss the contract and exactly what it means for the company.
Sit back and relax, grab a coffee, let us know what you think.
MONTREAL, June 04, 2019 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation†or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, today announced, further to the Press Release dated April 29th, 2019, that it has been awarded a contract (“Contractâ€) of approximately $20M (first year revenues), plus a net present value (using a 5% discount rate) of all subsequent year’s revenues of $35M, giving the Contract a total value of over $55M. For competitive reasons, the client and the business line cannot be disclosed at this time, other than to say it is not military-related. However, we except that both will be announced once the Contract is signed.
What now remains is a site visit under normal due diligence, which the Company has passed on numerous occasions with other very discerning clients. Management expects this to be completed shortly.
“This is indeed a watershed moment in PyroGenesis’ history. It is the single largest contract that the Company has been awarded,†commented Mr. P. Peter Pascali, President and CEO of PyroGenesis. “With the revenues from this Contract, we do not foresee raising capital for working capital purposes in the foreseeable future as the Company, with this Contract, which is cash flow positive from the start, will be profitable.â€
As previously disclosed, the Company does not need additional infrastructure or personnel to complete this Contract.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in
the design, development, manufacture and commercialization of advanced
plasma processes and products. We provide engineering and manufacturing
expertise, cutting-edge contract research, as well as turnkey process
equipment packages to the defense, metallurgical, mining, advanced
materials (including 3D printing), oil & gas, and environmental
industries. With a team of experienced engineers, scientists and
technicians working out of our Montreal office and our 3,800 m2
manufacturing facility, PyroGenesis maintains its competitive advantage
by remaining at the forefront of technology development and
commercialization. Our core competencies allow PyroGenesis to lead the
way in providing innovative plasma torches, plasma waste processes,
high-temperature metallurgical processes, and engineering services to
the global marketplace. Our operations are ISO 9001:2015 and AS9100D
certified, and have been since 1997. PyroGenesis is a publicly-traded
Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR)
and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com
This
press release contains certain forward-looking statements, including,
without limitation, statements containing the words “may”, “plan”,
“will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in
the process” and other similar expressions which constitute “forward-
looking information” within the meaning of applicable securities laws.
Forward-looking statements reflect the Corporation’s current expectation
and assumptions and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from those
anticipated. These forward-looking statements involve risks and
uncertainties including, but not limited to, our expectations regarding
the acceptance of our products by the market, our strategy to develop
new products and enhance the capabilities of existing products, our
strategy with respect to research and development, the impact of
competitive products and pricing, new product development, and
uncertainties related to the regulatory approval process. Such
statements reflect the current views of the Corporation with respect to
future events and are subject to certain risks and uncertainties and
other risks detailed from time-to-time in the Corporation’s ongoing
filings with the securities regulatory authorities, which filings can be
found at www.sedar.com, or at www.otcmarkets.com. Actual
results, events, and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking
statements. The Corporation undertakes no obligation to publicly update
or revise any forward- looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Neither the TSX Venture Exchange, its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) nor the OTCQB accepts responsibility for the
adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Clémence Bertrand-Bourlaud, Marketing Manager/Investor Relations, Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINKS: http://www.pyrogenesis.com/
MONTREAL, June 03, 2019 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation†or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, today announced, further to the Press Release dated April 29th, 2019, that it has been awarded a contract (“Contractâ€) of approximately $20M (first year revenues), plus a net present value (using a 5% discount rate) of all subsequent year’s revenues of $35M, giving the Contract a total value of over $55M. For competitive reasons, the client and the business line cannot be disclosed at this time, other than to say it is not military-related. However, we except that both will be announced once the Contract is signed.
What now remains is a site visit under normal due diligence, which the Company has passed on numerous occasions with other very discerning clients. Management expects this to be completed shortly.
“This is indeed a watershed moment in PyroGenesis’ history. It is the single largest contract that the Company has been awarded,†commented Mr. P. Peter Pascali, President and CEO of PyroGenesis. “With the revenues from this Contract, we do not foresee raising capital for working capital purposes in the foreseeable future as the Company, with this Contract, which is cash flow positive from the start, will be profitable.â€
As previously disclosed, the Company does not need additional infrastructure or personnel to complete this Contract.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in
the design, development, manufacture and commercialization of advanced
plasma processes and products. We provide engineering and manufacturing
expertise, cutting-edge contract research, as well as turnkey process
equipment packages to the defense, metallurgical, mining, advanced
materials (including 3D printing), oil & gas, and environmental
industries. With a team of experienced engineers, scientists and
technicians working out of our Montreal office and our 3,800 m2
manufacturing facility, PyroGenesis maintains its competitive advantage
by remaining at the forefront of technology development and
commercialization. Our core competencies allow PyroGenesis to lead the
way in providing innovative plasma torches, plasma waste processes,
high-temperature metallurgical processes, and engineering services to
the global marketplace. Our operations are ISO 9001:2015 and AS9100D
certified, and have been since 1997. PyroGenesis is a publicly-traded
Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR)
and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com
This
press release contains certain forward-looking statements, including,
without limitation, statements containing the words “may”, “plan”,
“will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in
the process” and other similar expressions which constitute “forward-
looking information” within the meaning of applicable securities laws.
Forward-looking statements reflect the Corporation’s current expectation
and assumptions and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from those
anticipated. These forward-looking statements involve risks and
uncertainties including, but not limited to, our expectations regarding
the acceptance of our products by the market, our strategy to develop
new products and enhance the capabilities of existing products, our
strategy with respect to research and development, the impact of
competitive products and pricing, new product development, and
uncertainties related to the regulatory approval process. Such
statements reflect the current views of the Corporation with respect to
future events and are subject to certain risks and uncertainties and
other risks detailed from time-to-time in the Corporation’s ongoing
filings with the securities regulatory authorities, which filings can be
found at www.sedar.com, or at www.otcmarkets.com. Actual
results, events, and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking
statements. The Corporation undertakes no obligation to publicly update
or revise any forward- looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Neither the TSX Venture Exchange, its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) nor the OTCQB accepts responsibility for the
adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Clémence Bertrand-Bourlaud, Marketing Manager/Investor Relations, Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINKS: http://www.pyrogenesis.com/
MONTREAL, May 31, 2019 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation†or “PyroGenesis”) a Company that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, wishes to clarify today, due to numerous inquiries, the transaction that took place yesterday wherein it was announced that the CEO, Mr. Photis Peter Pascali, had increased his beneficial ownership in the Company to 52.82% from 50.37%, an increase of approximately 2.5%.
As this transaction involved the CEO, a significant investor in the Company, the Company was obliged to issue an early warning report which regretfully has caused confusion.
In the transaction, Mr. Pascali acquired 3,385,715 Common Shares, plus Warrants for C$1,862,143.25.
The Company would like to clarify the fact that this was not a private placement, no money was received by the Company and no new shares or warrants were issued by the Company.
It was announced that Mr. Pascali acquired the Common Shares and Warrants for investment purposes and may, from time to time, acquire or dispose of ownership or control or direction over some or all of the existing securities or over additional securities of PyroGenesis.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Clémence Bertrand-Bourlaud, Marketing Manager/Investor Relations, Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINKS: http://www.pyrogenesis.com/
MONTREAL, May 10, 2019 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation†or “PyroGenesis”) a Company that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, is pleased to announce today that it intends to complete a non-brokered private placement financing (the “Offering”) for gross proceeds of up to $2,030,000, by issuing 3,500,000 Units at a price of $0.58 per Unit.
Each Unit will consist of one common share in the capital of the Company and one full common share purchase warrant (“Unit Warrantâ€), each full Unit Warrant entitling the holder to acquire one common share of the Company at a price of $0.85 which expires in two (2) years.
The Corporation will pay a finder’s fee of 4% on a portion of the proceeds of this Private Placement. The Corporation will not issue any finder’s compensation warrants in connection with this Private Placement.
The proceeds from the Private Placement will be used by the Corporation for general corporate purposes.
The Private Placement is subject to the final approval of the TSX Venture Exchange (“TSXVâ€) as well as other customary closing conditions.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities of 1933, as amended, or any state securities laws and may not be offered or sold within the United States, unless an exemption from such registration is available.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Clémence Bertrand-Bourlaud, Marketing Manager/Investor Relations, Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINKS: http://www.pyrogenesis.com/
MONTREAL, April 30, 2019 – PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF), a high-tech company, (the “Company”, the “Corporation†or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, today announced its financial and operational results for the fourth quarter and the fiscal year ended December 31, 2018.
“2018 was significantly affected by management’s decision to pursue strategic partnerships at the expense of revenues. However, as a result, we have press released imminent contracts in excess of $32MM with associated future revenues in excess of that,†said Mr. P. Peter Pascali, President and CEO of PyroGenesis. “Therefore if 2018 was the year in which the Company successfully positioned itself with unique and strategic partnerships, geared to effectively accelerate commercialization, then 2019 is the year that bears the fruit of that strategy. We strongly recommend that these financials be viewed in this context.â€
2018 was a year in which PyroGenesis posted:
Outlook
2018 was a year in which PyroGenesis successfully positioned each of its commercial business lines for rapid growth by strategically partnering with multi-billion-dollar entities who have identified PyroGenesis’ offerings to be unique, in demand, and of such a commercial nature as to warrant such unique relationships.
By the end of 2018 PyroGenesis could boast of a unique relationship with a multi-billion-dollar entity in each of its three commercial offerings:
| 1) The US Navy within the Military/Environmental sector; |
| 2) A Japanese trading house within the DROSRITETM (tolling) offering; |
| 3) Aubert & Duval within the Additive Manufacturing/3D printing (“AMâ€) offering. |
Most companies would be thankful for one such relationship, but PyroGenesis has successfully developed three.
It became readily apparent to management that partnering with the right entity could significantly accelerate commercialization in each of its new business lines. This however, would come with a cost in 2018. In order to succeed, PyroGenesis would have to dedicate significant resources to demonstrating the value proposition, and capabilities, to these entities. This meant that assets which should have been dedicated to sales now had to be deployed to developing these relationships. This not only impacted revenues, but it also increased costs of non-paying projects.
If 2018 was the year in which the Company successfully positioned itself with unique and strategic partnerships, geared to effectively accelerate commercialization, then 2019 is the year that bears the fruit of that strategy.
To date, PyroGenesis has announced that it should be awarded a two-ship build for its PAWDS unit shortly, for approximately $12.5MM. Add to this the recently announced potential contract with 1st year revenues of $20MM ($30-$50MM in subsequent years revenues) and the impact of this strategy is apparent: over $30 MM in revenues over the next 18 months. Approximately 6x 2018 revenues.
With these two contracts in hand alone, 2019 will be a profitable year.
2019 should also be the year in which the Company takes steps, outside
of the ordinary course of business, to unlock additional value for
investors.
One such step that has been announced is the spin-off of the Company’s additive manufacturing capabilities. Management has decided that, given all it knows, that a spin off at this time should unlock additional value for investors as it would:
| (i) | Attract an investor base best suited to the Company’s AM value proposition, particular business operations, and financial characteristics. There are large pools of money interested in investing in the AM space, but have no desire to have their funds comingled with unrelated business lines. A spin-off would assure them that such funds would be used for AM alone. |
| (ii) | Maximize shareholder value by placing the spin-off in a better position to generate revenues and develop strategic relationships than had it remained part of the PyroGenesis stable of technologies |
| (iii) | Simplify the offering making it easier for analysts to understand and value it properly. As it stands now PyroGenesis Additive is part of PyroGenesis Canada Inc’s offerings which include Drosrite™, US Military, and Purevap™, just to name a few, and as such makes it complicated to analyze. Last but not least, a spin-off creates a well understood entity with which interested parties could joint venture or acquire. |
Another step, which is likewise outside the ordinary course of business, and is geared to unlocking shareholder value, is the previously announced up-listing of the Company’s stock to a more senior exchange other than the one the Company is currently on.
There are other steps, outside the ordinary course of business, that the Company is considering to increase shareholder value and these will each be announced in due course.
2019 is positioned to be the first year, of many, that will bear the fruit of strategic decisions made in the recent past.
Financial Summary
Revenue
PyroGenesis recorded revenue of $5,030,116 in the year of 2018, representing a decrease of 30% compared with $7,192,861 recorded in the year of 2017.
Revenues recorded in fiscal 2018 were generated primarily from:
| (i) | PUREVAP™ related sales of $1,781,009 (2017 – $2,330,691); |
| (ii) | DROSRITE™ related sales of $1,237,740 (2017 – $98,391)); |
| (iii) | Support services related to PAWDS-Marine Systems supplied to the US Navy $1,451,998 (2017 – $4,337,681). |
| (iv) | Other sales and services $559,369 (2017 – $426,098) |
Cost of Sales and Services and Gross Margins
Cost of sales and services before amortization of intangible assets was $3,860,493 in 2018, representing a decrease of 5% compared with $4,065,894 in 2017.
In 2018, employee compensation, direct materials and manufacturing overhead decreased to $3,590,381 (2017 – $4,338,252) while subcontracting increased to $364,463 (2017- $98,256). The gross margin for 2018 was $1,109,297 or 22.1% of revenue compared to a gross margin of $3,126,967 or 43.5% of revenue for 2017.
The gross margin for 2018, was $1,109,297, or 22.1% of revenue. This compares with a gross margin of $3,126,961 (43.5% of revenue) for 2017.
As a result of the type of contracts being executed, the nature of the project activity had a significant impact on the gross margin and the overall level of cost of sales and services reported in a period, as well as the composition of the cost of sales and services, as the mix between labour, materials and subcontracts may be significantly different. The cost of sales and services for 2018 and 2017 are in line with management’s expectations.
The amortization of intangible assets of $60,326 in 2018 and $Nil for 2017 relates to patents and deferred development costs. Of note, these expenses are non-cash items and will be amortized over the duration of the patent lives.
Selling, General and Administrative Expenses
Included within Selling, General and Administrative expenses (“SG&Aâ€) are costs associated with corporate administration, business development, project proposals, operations administration, investor relations and employee training.
SG&A expenses for 2018 excluding the costs associated with share-based compensation (a non-cash item in which options vest principally over a four-year period), were $5,864,528, representing an increase of 33% compared with $4,394,837 reported for 2017.
The increase in SG&A expenses in 2018 over the same period in 2017 is mainly attributable to the net effect of:
Separately, share based payments decreased by 11% in 2018 over the same period in 2017 as a result of the vesting structure of the stock option plan including the stock options granted in 2018.
Research and Development (“R&Dâ€) Costs
The Company incurred $892,045 of R&D costs, net of government grants, on internal projects in 2018, an increase of 208% as compared with $289,851 in 2017. The increase in 2018 is related to torch development and plasma atomization related expenses.
In addition to internally funded R&D projects, the Company also incurred R&D expenditures during the execution of client funded projects. These expenses are eligible for Scientific Research and Experimental Development (“SR&EDâ€) tax credits. SR&ED tax credits on client funded projects are applied against cost of sales and services.
Inventory
The Company’s inventory as at December 31, 2018 was $382,832 which includes powders, raw material and spare parts compared with $123,735 for the same period in 2017.
Net Comprehensive Loss
The net comprehensive loss for 2018 of $7,845,800 compared to a loss of $6,174,303, in 2017, represents an increase of 27% year-over-year.
The increase of $1,671,497 in net comprehensive loss in 2018 is primarily attributable to the factors described above, which have been summarized as follows:
| (i) | a decrease in product and service-related revenue of $2,162,745 arising in 2018, |
| (ii) | a decrease in cost of sales and services totaling $145,075, primarily due to an increase in an increase in subcontracting, a decrease in investment tax credits, and an increase in amortization of intangible assets. |
| (iii) | an increase in SG&A expenses of $1,383,927 arising in 2018 primarily due to an increase in employee compensation, professional fees, travel, depreciation on property & equipment, and other expenses, |
| (iv) | an increase in R&D expenses of $602,194 primarily due to the increase in employee compensation, subcontracting, materials & equipment and other expenses, |
| (v) | a decrease due to the settlement of the claim related to the IP debt balance of $3,215,643, an increase in net finance costs of $883,349 in 2018. |
EBITDA
The EBITDA loss in 2018 was $6,864,461 compared with an EBITDA loss of $5,558,640 for 2017, representing an increase of 23% year-over-year. The increase in the EBITDA loss in 2018 compared with 2017 is due to the increase in comprehensive loss of $1,671,497, offset by an increase depreciation on property and equipment of $100,685, an increase amortization of intangible assets of $60,326 and an increase in finance charges of $204,665.
Adjusted EBITDA loss in 2018 was $6,191,212 compared with an Adjusted EBITDA loss of $1,583,985 for 2017. The increase of $4,607,227 in the Adjusted EBITDA loss in 2018 is attributable to an increase in EBITDA loss of $1,305,821, offset by a decrease of $85,764 in share-based payments and a decrease in the settlement of a claim related the long-term debt of $3,215,643.
The Modified EBITDA loss in 2018 was $5,271,749 compared with a Modified EBITDA loss of $1,445,785 for 2017, representing an increase of 265%. The increase in the Modified EBITDA loss in 2018 is attributable to the increase as mentioned above in the Adjusted EBITDA of $4,607,227 and a decrease in change of fair value of investments of $781,263.
Liquidity
The Company has incurred, in the last several years, operating losses and negative cash flows from operations, resulting in an accumulated deficit of $51,066,540 and a negative working capital of $4,101,429 as at December 31, 2018 (December 31, 2017 – $43,200,708 and $9,527,105 respectively). Furthermore, as at December 31, 2018, the Company’s current liabilities and expected level of expenses for the next twelve months exceed cash on hand of $644,981 (December 31, 2017 – $622,846). The Company has relied upon external financings to fund its operations in the past, primarily through the issuance of equity, debt, and convertible debentures, as well as from investment tax credits.
Separately, PyroGenesis is pleased to announce that Mr. Lelio Lato has joined the Company as V.P. Finance. As a CPA and CFA with over 20 years of experience, he has worked in various senior management roles across small cap technology companies with extensive capital markets knowledge.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, having been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com.
This press release contains certain forward-looking statements,
including, without limitation, statements containing the words “may”,
“plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”,
“expect”, “in the process” and other similar expressions which
constitute “forward- looking information” within the meaning of
applicable securities laws. Forward-looking statements reflect the
Corporation’s current expectation and assumptions and are subject to a
number of risks and uncertainties that could cause actual results to
differ materially from those anticipated. These forward-looking
statements involve risks and uncertainties including, but not limited
to, our expectations regarding the acceptance of our products by the
market, our strategy to develop new products and enhance the
capabilities of existing products, our strategy with respect to research
and development, the impact of competitive products and pricing, new
product development, and uncertainties related to the regulatory
approval process. Such statements reflect the current views of the
Corporation with respect to future events and are subject to certain
risks and uncertainties and other risks detailed from time-to-time in
the Corporation’s ongoing filings with the securities regulatory
authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual
results, events, and performance may differ materially. Readers are
cautioned not to place undue reliance on these forward-looking
statements. The Corporation undertakes no obligation to publicly update
or revise any forward- looking statements either as a result of new
information, future events or otherwise, except as required by
applicable securities laws.
Neither the TSX Venture
Exchange, its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) nor the OTCQB accepts
responsibility for the adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
MONTREAL, April 25, 2019 (GLOBE NEWSWIRE) —
PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB:
PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the
“Corporation†or “PyroGenesis”) that designs, develops, manufactures and
commercializes plasma atomized metal powder, plasma waste-to-energy
systems and plasma torch products, today announced that it has provided
an interim progress report to HPQ Silicon Resources (“HPQâ€),
highlighting GEN2’s significantly higher silicon metal production yield.
PyroGenesis informed HPQ that (i) the technical team identified a new operational parameter that increases the Pure Silicon Metal (Silicon Nugget) Production Yield1 of the PUREVAP™ Quartz Reduction Reactor and (ii) a test using the GEN2 PUREVAP™ was completed which together provided the following information:
IMPROVING REACTANT FLOW IN THE REACTOR SIGNIFICANTLY IMPROVES PRODUCTION YIELD
The scope of the potential of the new parameter became apparent when the test produced the largest single individual silicon nuggets of all tests to date; weighing ~ 6.5 grams.
REACTOR MODIFICATION MORE THAN DOUBLES SILICON METAL NUGGET (PURE SILICON) PRODUCTION YIELD
Comparing3 the 3.3% pure silicon nugget production yield of test #14 to the 7.0% pure silicon nugget production yield obtained by test M-001 validated the modification potential. Further tests will be needed to optimize the process and its operation, but the results clearly indicate that pure silicon production yield more than doubled with the modification. Producing 4N+ silicon with the PUREVAP™ assumes a 90%+ production yield at commercial scale. These results are part of our trendline that indicate that we are on the right track to reach that goal with our GEN3 PUREVAP™ Pilot Plant.
“It has always been important to maintain or improve production yield while scaling up to a commercial system,†said Mr. Pierre Carabin, Chief Technology Officer and Chief Strategist of PyroGenesis. “Being able to improve it, with results such as today’s, and thereby further mitigating the risk of the project, is a significant achievement in itself, and it validates the decision to proceed with the GEN2 middle step. We have ticked off another box in our goal to create both a low cost and green metallurgical approach to producing solar grade silicon metal.â€
GEN2 PUREVAP™ QRR CONTINUES TO BE AN INVALUABLE BENCH TEST PLATFORM
These latest results confirm the strategic decision to incorporate the GEN2 as a middle step towards the GEN3 pilot plant. It provides us the ability to immediately test new concepts and design modifications using the GEN2 PUREVAP™ platform while the GEN3 PUREVAP™ pilot plant is being assembled. This unique proposition not only reduces the risk profile of the project, but it also reduces the project commercial validation timeline. It is also extremely cost effective since tests done using the GEN2 R&D platform are substantially less expansive then they would be if the tests were done using the GEN3 PUREVAP™ pilot plant.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 and AS9100D certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com
PyroGenesis is one of Canada’s greatest small cap technology companies, with several successful divisions that are succeeding both globally and at the highest levels of business. The common denominator for each of them is the company’s plasma torch technology. For example, 2 US Aircraft Carriers (and 2 more on the way) have integrated Pyro’s plasma torch technology for environmental applications. At $13 Billion per carrier now, one can only imagine the hyper-stringent hoops PyroGenesis had to pass – which puts their technology at the world class level.
In addition to other equally impressive applications, the company’s 3D printing (additive manufacturing) division has also achieved great success in the past year, culminating with a mutually exclusive partnership agreement with Aubert & Duval, a subsidiary of the ERAMET Group with 2017 sales of approximately $CDN 5.4 Billion and assets of approximately $CDN 4.9 billion. For over 100 years, Aubert & Duval has been a world leader in industrializing high-performance steel, super alloy, aluminum and titanium alloys. More specifically, they are a recognized supplier of metal powders for additive manufacturing, serving the Aerospace, Energy, Transport, Medical, Defense, Automotive and other large scale, demanding markets.
Just recently, for the second year in a row, the company was nominated for materials company of the year at the 3D printing awards.
Today, PyroGenesis announced the spinout of its 3D printing division in order to unlock value for shareholders and become more attractive to institutional investors that are strictly focused on 3D printing. In addition, the company believes that uplisting will also make both the new company and the existing company more attractive to institutional investors that are precluded from investing on junior exchanges.
We were proud to sit down with CEO, Peter Pascali, and discuss all the benefits and implications of this major development. Grab your favourite drink, sit back and watch this great interview!
MONTREAL, April 16, 2019 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation†or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, today announced that the Board of Directors is moving forward with the previously announced spin-off of PyroGenesis Additive, a division specializing in developing, commercializing and advancing plasma-atomized metal powder for the additive manufacturing (“AMâ€) industry. Additionally, the Company is also considering uplisting its stock to a more senior exchange. Â
Mr. P. Peter Pascali, President and CEO of PyroGenesis, provides this update on today’s announcements in the following Q&A format. The questions, for the most part, are derived from inquiries received from investors, and analysts:
Q. The spin-off of PyroGenesis Additive. It has been a long time in the making.
A. Indeed it has, and for some very good reasons. The space has been rocked with change and we had to ensure that our investors received maximum return from the spin-off, and at values management felt were fair. I believe that there has been no better time than now to move forward with the spin-off. These strategic delays have effectively increased shareholder’s value.
Q. Could you explain those reasons to readers who are new to the story?
A. Most certainly.
Almost three years to the day, in the spring of 2016, we announced our intention to spin-off our additive manufacturing capabilities to maximize shareholder value and increase options to the Company. The original idea was to consider a small concurrent financing to fund the immediate need which was essentially to have a first system in place producing powders.
Between the announcement and September 2016, while we were weighing the options and various structures the spin-off could take, GE announced that they had acquired Arcam and Concept Laser (both manufacturers of printers which make metal 3D parts).
GE’s acquisitions arguably disrupted the supply chain of titanium powders to the industry with the indirect acquisition of a subsidiary of Arcam which had become the dominant supplier of such powder to the space. It was imperative that we understood the impact of these acquisitions on our decision to spin-off before we moved forward.
Once we understood the impact of the acquisition on the market, we decided to postpone the spin-off until our first powder production system was assembled which was only a few months away. We then waited until the ramp up was completed. These delays removed any doubts, in the marketplace, that we could produce quality powders, and as such, increased the value of the spin-off to current investors.
Given the reception of our powder by the market (in 2018, we were nominated Materials Company of the Year at the 3D Printing Industry Awards, which speaks to how much we had accomplished in such a short time), we felt we were close to a key contract and/or a significant relationship, and decided to wait until one or the other was in hand.
In the summer of 2018, discussions took place with Aubert & Duval which lead to the joint press release of January 8, 2019 describing a mutually exclusive relationship with respect to the distribution of PyroGenesis’ titanium powder to the AM industry in Europe.
Given what has taken place, and what we know now, management has made a strategic decision to spin-off PyroGenesis Additive at this time.
Q. Why spin-off PyroGenesis Additive in the first place?
A. There are a number of reasons, but they all boil down to one goal: simplicity.
The reason to spin-off PyroGenesis Additive is primarily to attract an investor base best suited to their unique value proposition, particular business operations, and financial characteristics, thereby maximizing shareholders’ value and placing it in a better position to generate revenues and develop strategic relationships than had it remained part of the PyroGenesis stable of technologies.
The simpler an offering is the easier it is for analysts to understand and value it properly. As it stands now PyroGenesis Additive is part of PyroGenesis Canada Inc’s offerings which include Drosrite™, US Military, and Purevap™, just to name a few, and as such makes it complicated to analyze. Add to this that analysts typically specialize in one sector or another, and as such may very well be able to fully value PyroGenesis’ Additive’s offering, but would be hard pressed to do equal justice to PyroGenesis’ other business lines, and you have a significantly undervalued group of assets. Spinning one group off would unlock this value.
Simplifying an offering would also make it easier to attract investment. There are large pools of money interested in investing in the AM space, but have no desire to have their funds comingled with unrelated business lines. A spin-off would assure them that such funds would be used for AM alone.
Last but not least, a spin-off creates a well understood entity with which interested parties could joint venture or acquire.
Bottom line: a spin-off creates simplicity, which in and of itself, increases interest, all to the benefit of shareholders.
Q. Any challenges in a spin-off?
A. There are many, but the two that I think are key are timing and structure. The timing and structure of a spin-off is critical to its survivability. The spin-off must be done in a context where it can grow and mature, not much different from a young adult leaving home.
It is management’s firm belief that given recent announcements, and what we anticipate taking place in the near term, spinning-off PyroGenesis Additive is now overdue.
Q. Are there any other factors motivating your decision to spin-off PyroGenesis Additive at this particular time?
A. Yes. There is a huge interest by our partners to spin-off PyroGenesis Additive for all the reasons given above. This is a major factor in our decision to move forward now.
Q. You also announced today that you are considering an uplisting. Could you describe what this means?
A. The Company’s stock currently trades on the TSX Venture Exchange (“TSX-Vâ€). Although a good exchange it does have its limitations. It may be a good place for a company to list initially but, in time, a company should consider moving to a bigger and better exchange. By bigger and better I mean one which will attract more interest and as such attract greater investment which by default would translate into a higher stock price. This is a natural progression and the TSX-V boasts of the number of companies that have uplisted from their platform.
I think it would be more appropriate to say that we are considering which exchange to uplist on, rather than considering an uplisting. It has already been decided that we have to become listed on a more senior exchange, sooner than later.
Q. What would be the timing and what are the next steps?
A. Both uplistings and spin-offs require regulatory approval and depending on the type and number of questions from the regulators, will determine the time it takes to complete. Assuming nothing out of the ordinary, either one could take 4-6 months.
Next steps would be to engage a Canadian based law firm, which we are in the process of doing, and to engage an investment bank. We are currently receiving proposals from investment bankers on both sides of the border.
Q. What could delay the process?
A. As I said the process requires regulatory review and approvals. There could be delays associated with this. Other than that, funds. The process requires capital to complete although a large part of it is success based and back-ended.
Q. Assuming money is not an object, and that the regulatory approval process is not unduly burdensome, when are you targeting these events to be completed?
A. Both in 2019, this year, but failing that, one this year and the other by Q1, 2020.
Q. Do you care to add any concluding remarks?
A. Yes, I would.
There has been a flurry of developments within our PyroGenesis
Additive segment. We started the year by announcing a significant
agreement with a multi-billion-dollar European Company to market our
powders to Europe on a mutually exclusive basis. This was followed by
our unveiling of our NexGen™ Plasma Atomization process with production
rates that shattered all published plasma atomization production rates.
Next, we announced that we had shipped specialty powders to a
government entity which was quickly followed by the announcement that we
had successfully produced titanium powders with the NexGen™.
During
this time, we were also nominated for the second year in a row as
Materials Company of the Year at the 3D Printing Industry Awards 2019.
There is a consensus building that such news belongs on a better platform. Management concurs, and is taking the necessary steps.
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Clémence Bertrand-Bourlaud, Marketing Manager/Investor Relations, Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINKS: http://www.pyrogenesis.com/
MONTREAL, April 16, 2019 — PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX-V: PYR) (OTCQB: PYRNF) (FRA: 8PY), a high-tech company, (the “Company”, the “Corporation†or “PyroGenesis”) that designs, develops, manufactures and commercializes plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, today announced that the Board of Directors has approved the implementation of the necessary steps to spin-off PyroGenesis Additive, a division specializing in developing, commercializing and advancing plasma-atomized metal powder for the additive manufacturing industry.
The terms of the spin-off are not yet agreed to, and will be disclosed once they have been confirmed and approved by the Board. Furthermore, it is expected that the spin-off will not represent more than 50% of the assets of the Company.
“The reason to spin-off PyroGenesis Additive is primarily to attract an investor base best suited to their unique value proposition, particular business operations, and financial characteristics, thereby maximizing shareholders’ value and placing it in a better position to generate revenues and develop strategic relationships than had it remained part of the PyroGenesis stable of technologies,†said Mr. P. Peter Pascali, President and CEO of PyroGenesis. “A spin-off creates simplicity which in and of itself increases interest, all to the benefit of shareholders.â€
About PyroGenesis Canada Inc.
PyroGenesis Canada Inc., a TSX Venture 50® high-tech company, is the world leader in the design, development, manufacture and commercialization of advanced plasma processes and products. We provide engineering and manufacturing expertise, cutting-edge contract research, as well as turnkey process equipment packages to the defense, metallurgical, mining, advanced materials (including 3D printing), oil & gas, and environmental industries. With a team of experienced engineers, scientists and technicians working out of our Montreal office and our 3,800 m2 manufacturing facility, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. Our core competencies allow PyroGenesis to lead the way in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace. Our operations are ISO 9001:2015 certified, and have been since 1997. PyroGenesis is a publicly-traded Canadian Corporation on the TSX Venture Exchange (Ticker Symbol: PYR) and on the OTCQB Marketplace. For more information, please visit www.pyrogenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words “may”, “plan”, “will”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “in the process” and other similar expressions which constitute “forward- looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Corporation’s current expectation and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Corporation with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Corporation’s ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com, or at www.otcmarkets.com. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward- looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws. Neither the TSX Venture Exchange, its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the OTCQB accepts responsibility for the adequacy or accuracy of this press release.
SOURCE PyroGenesis Canada Inc.
For further information please contact: Clémence Bertrand-Bourlaud, Marketing Manager/Investor Relations, Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINKS: http://www.pyrogenesis.com/