07:45 AM EDT, 05/30/2024 (MT Newswires) -- PyroGenesis Canada Inc. ( PYRGF ) , a high-tech company that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG) and address environmental pollutants, on Thursday notified HPQ Silicon Inc. ( HPQFF ) of its intent to exercise its right to convert its annual royalty rights into a 50% ownership of HPQ Silica Polvere Inc., a wholly-owned subsidiary of HPQ.

A statement noted PyroGenesis and HPQ Polvere are parties to a Development and Purchase Agreement, pursuant to which PyroGenesis had the right to convert its rights to an annual royalty on the gross sales generated by HPQ Polvere into an ownership stake in that company. In accordance with the Development and Purchase Agreement, the statement said, HPQ and PyroGenesis shall now negotiate and draft a shareholders' agreement.

"With PyroGenesis' conversion of the HPQ Polvere annual royalty option to an ownership stake, the potential benefit to the company from HPQ Polvere's future success is enhanced, and we are very excited about what the future holds for the FSR project -- an initiative we believe is a truly innovative approach to producing fumed silica, one of the most in-demand materials", said P. Peter Pascali, President and CEO of PyroGenesis.

He added: "The technology developed by PyroGenesis for HPQ Polvere is designed to offer significant economic and environmental advantages over conventional manufacturers -- improving profitability, but also reducing the environmental footprint and reducing the harmful chemicals associated with traditional fumed silica production. This conversion to an ownership stake also further solidifies the already-strong relationship between HPQ and PyroGenesis, as we move forward with this and other projects together."