PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) said it has received a payment of $1.5 million under its existing C$25 million-plus Drosrite contract with a balance of $8 million remaining to be received under the deal.
“We trust that this payment will allay any concerns that some may have had with respect to the collectability of this receivable”, said P. Peter Pascali, CEO and president of PyroGenesis in a statement.
The payment today was in accordance with a continuously revised payment schedule and while there have been some delays, the company is in agreement with the general strategy of the client and its end-client, he added.
“PyroGenesis believes that this relationship will lead to increased business opportunities as we cross sell our downstream and upstream business lines with this end-client and potentially with others in the region. Discussions in this regard have taken place, and continue to take place, with the client and the end-client. Although we anticipate receiving future payments based on the revised schedule being worked out, we recognize the possibility of future periodic payment delays due to unforeseen circumstances beyond our control. Nevertheless, based on the information we have, we view this project as a stepping stone to generating more business opportunities in the Middle East region.”
PyroGenesis Canada is a high-tech company and is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases and are economically attractive alternatives to conventional processes.
Contact the author at jon.hopkins@proactiveinvestors.com