PyroGenesis Canada Inc. (TSX:PYR, OTCQX:PYRGF) announced it has received a non-refundable down payment totaling C$667,252 (US$500,000) from a US-based technology company under a recently signed Master Agreement for its plasma torches.
The down payment relates to a large first-phase contract worth over $10 million and provides for a period of exclusivity until February 15, 2024, during which the client expects to secure financing and complete a first statement of work (SOW) with PyroGenesis.
During the exclusivity period, PyroGenesis said the two companies will work together to finalize and execute the initial SOW, outlining the terms that PyroGenesis would design, build, and deliver five high-power 2MW air plasma torch systems for an aggregate price of approximately US$13 million.
The Master Agreement also contemplates additional SOWs being entered into for the purchase of torches, related equipment, and services, the company added.
“This nonrefundable down payment is a significant step towards concluding the first SOW under the Master Agreement, a contract which anticipates many more SOWs to come,” PyroGenesis president and CEO P. Peter Pascali commented in a statement.
“Provided the Client receives adequate financing, this contract has the potential to be a springboard from which PyroGenesis introduces a significant number of plasma torches into the marketplace.”
Apart from the positive impact on revenue and profitability, PyroGenesis said the direct sales of its plasma torches would also fit with its strategy to develop ongoing revenue streams from activities such as maintenance and spare parts sales.
“As industries increasingly seek efficient alternatives to fossil fuel-based systems, PyroGenesis’ electric and carbon-free plasma torches continue to be proven as not just a highly suitable alternative, but also a potentially faster and more cost-effective solution,” Pascali added.
PyroGenesis is a proud 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 “dirty” processes.