- Closed a $903,000 non-brokered secured convertible loan at 12% per annum, with a related party
- Loan is secured by a subordinated Hypothec on the Universality of Movable Property over all of the present and after acquired moveable property and assets of the Company.
MONTREAL, March 18, 2020 – 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 systems, is pleased to announce today that it has closed a $903,000 non-brokered secured convertible loan at 12% per annum (the “Loanâ€), with a related party.
The Loans bears interest at the rate of 12% per annum, with interest
payable in cash on a quarterly basis in arrears and matures September
17th, 2021. The Loan is convertible into common shares of the Company
(each, a “Common Share”) at a conversion price of $0.28 per Common Share
(the “Conversion Price”). The Common Shares issuable on conversion of
the Loan will be subject to a statutory hold period of four months and
one day from the closing date.
The Loan is secured by a subordinated Hypothec on the Universality of
Movable Property over all of the present and after acquired moveable
property and assets of the Company.
PyroGenesis intends to use the net proceeds from the Offering for
general corporate purposes. The Offering is subject to the final
approval of the TSXV.
P. Peter Pascali, CEO and President of PyroGenesis, provides the following situation update:
“As a global Covid-19 pandemic sweeps across the globe, it would be
an understatement to suggest that these are trying times. The world
finds itself in uncharted and precarious territory, a show that has no
script. What is certain is that the future is not as certain as we
thought it was mere weeks ago. At PyroGenesis, the health, safety and
wellbeing of our people, and community, is our number one priority. As
such, we immediately implemented an emergency work-from-home policy and,
as such, work continues without material interruption. We have also
secured our supply lines which, to date, seem to be in order. As a
cautionary second step, we managed to secure this loan which we
announced today, from a related party, to shore up any unforeseen events
that may arise from the current situation. We thought this to be
prudent under the circumstances.
Current events are presenting a unique set of challenges to
businesses. The economic and social impact is already on a scale not
seen in the post war era. This uncertain future is leading companies to
have to make difficult decisions. At PyroGenesis, we will do our part
to ensure all our employees are employed, safe, and healthy. We are
also doing our part to source limited supplies from our international
contacts to augment the needs of our community health care system.
Times like these require us as entrepreneurs and businesses leaders
to come together to help our communities assist each other. After all,
we are skilled leaders and decision makers having operated in this type
of arena all our live; making decisions on limited information,
ascertaining risk, executing and adjusting as the case may be.
It is not business as usual, that is for sure. However, a measure of a
team is how they manage crisis. At Pyogenesis, we have a seasoned team
of business veterans when it comes to innovation and crisis
management. I am proud of my team in how they handle challenges, and
never more than I am these days.
Be safe and we will keep you up to date with any material developments.â€
The Corporation did not file a material change report more than 21
days before the excepted closing of the Offering as the details of the
participation therein by related parties of the Corporation were not
settled until shortly prior to the closing of the Offering.
The securities have not been, and will not be, registered under the
United States Securities Act of 1933, as amended (the “1933 Act”), or
any state securities laws and may not be offered or sold in the United
States or to, or for the account or benefit of, U.S. persons (as defined
in Regulation S under the 1933 Act), except pursuant to an exemption
from the registration requirements of those laws. This press release
shall not constitute an offer to sell or the solicitation of an offer to
buy securities in the United States, or for the account or benefit of
U.S. persons (as such term is defined in Regulation S under the 1933
Act).
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:
Rodayna Kafal, Vice President Investors Relations and Strategic Business Development
Phone: (514) 937-0002, E-mail: [email protected]
RELATED LINK: http://www.pyrogenesis.com/
