PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) said it has reached an agreement with Research Capital Corporation to conduct a brokered private placement offering.
The offering will consist of up to 5,000 unsecured convertible debenture units priced at C$1,000 each, potentially raising proceeds of up to C$5 million.
The company noted that P. Peter Pascali, its president, CEO, and director, has expressed his intention to subscribe for up to C$2 million of the convertible debenture units.
Each unit will include a 10.0% unsecured convertible debenture with a maturity of 36 months and 500 common share purchase warrants. The debentures will be convertible into common shares at the holder's option, either before the maturity date or prior to a specified redemption date upon a change of control.
The convertible debentures will accrue interest at a rate of 10.0% per annum, payable semi-annually in cash or, subject to regulatory approval, in common shares. The proceeds from the offering will be utilized for working capital and general corporate purposes.
The offering is expected to close on or around the week of July 6, 2023, subject to regulatory approvals. The offered securities will be subject to a hold period of four months and one day from the closing date.
In a separate statement, PyroGenesis Canada also announced the voting results from its annual meeting of shareholders held on June 22, 2023, in a virtual format. A total of approximately 47.4% of the issued and outstanding common shares of PyroGenesis were represented at the meeting. All of the nominees for election as directors of PyroGenesis referred to in its management information circular for the meeting were elected. Shareholders also approved the appointment of Raymond Chabot Grant Thornton LLP as auditor of PyroGenesis.
PyroGenesis Canada is a high-tech company specializing in the design, development, manufacture, and commercialization of advanced plasma processes and sustainable solutions. The company's proprietary plasma technologies are gaining recognition and adoption across multiple industries, including iron ore pelletization, aluminum, waste management, and additive manufacturing.
Contact the author at jon.hopkins@proactiveinvestors.com