PyroGenesis receipt of $2M payment under existing Drosrite contract
by CM staff
A balance of approximately CA$10.7 million remains to be received under the contract.
MONTREAL — PyroGenesis Canada Inc., a tech company that designs, develops, manufactures, and commercializes plasma processes and sustainable solutions to reduce greenhouse gases, has received a payment of US$1.5 million (approximately CA$2 million) under the company’s existing CA$25+ million Drosrite™ contract.
A balance of US$8 million (approximately CA$10.7 million) remains to be received under the contract.
As previously announced, PyroGenesis contracted with Drosrite International LLC, which was in turn contracted by Radian Oil and Gas Services Company for an order of 7 Drosrite™ systems.
The first three systems have passed site acceptance testing and are currently in full commercial operation at the Ma’aden plant in Ras Al-Khair, which is a joint venture corporation with Alcoa. The remaining four systems under the contract have already been manufactured and are ready for deployment subject to a renewed payment schedule.
“We trust that this payment will allay any concerns that some may have had with respect to the collectability of this receivable”, said Mr. P. Peter Pascali, CEO and President of PyroGenesis. “The payment announced today was made in accordance with a continuously revised payment schedule geared to better align the pressures on the end-client’s operating cash flows created by increased business opportunities. While there have been some delays, which were communicated to us in advance, the Company is in agreement with the general strategy being implemented by the client and its end-client.”
“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 steppingstone to generating more business opportunities in the Middle East region.”
PyroGenesis will provide updates on the revised payment schedule as they become available.
