PyroGenesis Closes $2,385,000 First Tranche in Previously Announced Loan

Rhea-AI Summary

PyroGenesis (PYRGF) has successfully secured the first tranche of $2,385,000 from a previously announced non-brokered loan with CEO P. Peter Pascali. The company may receive up to an additional $3,365,000 in subsequent tranches by June 16, 2025, potentially totaling $5,750,000. As part of this transaction, PyroGenesis issued 5,207,423 warrants to Pascali, each allowing the purchase of one common share at $0.458 per share over a four-year period. The funds will be used for working capital and general corporate purposes. PyroGenesis specializes in developing advanced all-electric plasma processes and sustainable solutions for heavy industry's energy transition and emission reduction efforts.

Positive

• CEO demonstrates confidence in company by providing substantial loan financing
• Successful closing of first tranche provides immediate working capital of $2.385M
• Potential for additional funding of up to $3.365M by June 2025
• Four-year warrant term provides long-term financing flexibility

Negative

• Reliance on insider funding may indicate difficulties accessing traditional financing
• Warrant issuance could lead to future dilution if exercised
• Related party transaction raises potential governance concerns

MONTREAL, May 12, 2025 (GLOBE NEWSWIRE) -- PyroGenesis Inc. (“PyroGenesis”) (http://pyrogenesis.com) (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY1), a high-tech company that designs, develops, manufactures and commercializes advanced all-electric plasma processes and sustainable solutions to support heavy industry in their energy transition, emission reduction, commodity security, and waste remediation efforts, announced today that, further to its press release dated May 5, 2025 it successfully closed the first tranche of the previously announced non-brokered loan with P. Peter Pascali (the “Lender”).

Under this first tranche, PyroGenesis received $2,385,000. As previously disclosed, PyroGenesis and the Lender may agree to one or more tranches of up to an additional $3,365,000 on or before June 16, 2025 (for a total loaned amount of up to $5,750,000). In connection with this tranche, PyroGenesis has issued 5,207,423 common share purchase warrants to the Lender. Each warrant entitles the Lender to acquire one common share of PyroGenesis at an exercise price of $0.458 per share for a period of four years from the effective date of the loan, subject to a hold period of four months and one day in accordance with applicable securities laws.

As previously disclosed, the Lender, who is the President and CEO of PyroGenesis, is a related party.

The Company intends to use the net proceeds for working capital and general corporate purposes.

About PyroGenesis Inc.

PyroGenesis, a high-tech company, is a proud leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG) and are economically attractive alternatives to conventional “dirty” processes. PyroGenesis has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management, and additive manufacturing. With a team of experienced engineers, scientists and technicians working out of its Montreal office, and its 3,800 m² and 2,940 m² manufacturing facilities, PyroGenesis maintains its competitive advantage by remaining at the forefront of technology development and commercialization. The operations are ISO 9001:2015 and AS9100D certified, having been ISO certified since 1997. PyroGenesis’ shares are publicly traded on the TSX in Canada (TSX: PYR), the OTCQX in the US (OTCQX: PYRGF), and the Frankfurt Stock Exchange in Germany (FRA: 8PY1).

Cautionary and Forward-Looking Statements

This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “is positioned”, “estimates”, “intends”, “assumes”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management’s current beliefs, expectations, estimates and projections regarding future events and operating performance.

Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by PyroGenesis as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under “Risk Factors” in PyroGenesis’ latest annual information form, and in other periodic filings that it has made and may make in the future with the securities commissions or similar regulatory authorities, all of which are available under PyroGenesis’ profile on SEDAR+ at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect PyroGenesis. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. PyroGenesis undertakes no obligation to publicly update or revise any forward-looking statement, except as required by applicable securities laws.

Neither the Toronto Stock Exchange, its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) nor the OTCQX Best Market accepts responsibility for the adequacy or accuracy of this press release.

For further information please contact:
Rodayna Kafal, Vice President, IR/Comms. and Strategic BD
E-mail: ir@pyrogenesis.com
http://www.pyrogenesis.com

FAQ

How much did PyroGenesis (PYRGF) receive in the first tranche of the loan?

PyroGenesis received $2,385,000 in the first tranche of the non-brokered loan from CEO P. Peter Pascali.

What is the total potential loan amount PyroGenesis (PYRGF) could receive?

The total potential loan amount could reach up to $5,750,000, with additional tranches of up to $3,365,000 available by June 16, 2025.

What are the terms of the warrants issued to PyroGenesis CEO?

PyroGenesis issued 5,207,423 warrants with an exercise price of $0.458 per share, valid for four years, subject to a four-month hold period.

How will PyroGenesis use the loan proceeds?

PyroGenesis intends to use the net proceeds for working capital and general corporate purposes.

Who provided the loan to PyroGenesis (PYRGF)?

The loan was provided by P. Peter Pascali, who is the President and CEO of PyroGenesis, making it a related party transaction.