PyroGenesis plans spin-off of 3D printing business
Montreal firm to create separate entity for additive manufacturing unit in effort to boost value, strategic relationships
MONTREAL—PyroGenesis Canada Inc. has announced plans to spin-off as much as 80 per cent of its 3D printing business into a separate company.
The Montreal-based cleantech firm, which among other ventures, makes a range of waste-to-energy systems, said the spin-off will include the rights to its patented additive manufacturing technology. The new company, tentatively dubbed “3DCo,” will also have all the rights to distribute powder production systems and equipment under an exclusive world-wide license with PyroGenesis.
“Spinning off 3DCo will help attract an investor base best suited to the company’s unique value proposition, particular business operations and financial characteristics, thereby maximizing shareholder value and placing it in a better position to ramp up, generate revenues, and develop strategic relationships/partners than had it remained part of PyroGenesis,” Peter Pascali, the company’s president and CEO said.
“3DCo will be able to sharpen its strategic focus and provide flexibility to capitalize on the unique growth opportunities within its market sector. At the same time, it will provide PyroGenesis with a source of repeat business and recurring revenues as well as an investment position in a vibrant public company,” Pascali added.
PyroGenesis plans to stage-in the spin-off over the next four months. Though the final structure of the event is still to be determined, the company said it intends to structure the spin-off as a tax-free transaction for its shareholders.
The company’s additive manufacturing unit is expected to reach commercial production by the third quarter of this year, providing a range of high-quality metal powders for the fast-growing 3D printing industry.