PyroGenesis Announces Closing of a $1.25 Million Private Placement

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MONTREAL, Dec. 20, 2023 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSX: PYR) (OTCQX: PYRGF) (FRA: 8PY), a high-tech company (the “Company” or “PyroGenesis”) that designs, develops, manufactures and commercializes advanced plasma processes and sustainable solutions which are geared to reduce greenhouse gases (GHG) and address environmental pollutants, is pleased to announce that on December 20, 2023 (the “Effective Date”) it closed a $1,250,000 non-brokered private placement of a convertible loan (“Loan”) in the amount of $1.25 million with Fiducie de Crédit Mellon Trust, a related party (the “Lender”).

The Loan, bearing an interest rate of 3% per annum, will be paid quarterly in arrears and will mature eighteen months following the Effective Date. During this period, the Lender may convert, in whole or in part, (i) the principal amount of the loan into common shares of the Company (“Common Shares”) at the conversion price equal to $0.4918 (the “Conversion Price”), which amount represents a 20% premium to the per share volume weighted average trading price (VWAP) of the Common Shares on the TSX for the five trading days immediately preceding the date of the Effective Date (the “Current Market Price”), and (ii) subject to the approval of the TSX, any accrued interest into Common Shares at a conversion price equal to the higher of the (a) Current Market Price for the period immediately preceding the date of payment of the accrued interest and (b) Conversion Price.

As part of the Loan, PyroGenesis also granted to the Lender share purchase warrants (“Warrants”) to subscribe for up to 625,000 Common Shares at a purchase price of $0.4098 per share (representing the Current Market Price on the effective date of the Loan). The Warrants expire eighteen months following the Effective Date. The Warrants will be subject to a hold period of four months and one day from the date hereof in accordance with applicable securities laws.

At any time after March 1, 2024, the Lender may require the prepayment of the entire outstanding balance of the Loan amount. The Company also has the right to prepay the balance of the loan at any time upon thirty days prior notice to the Lender. The Loan will be secured by a subordinated hypothec on the universality of the Company’s movable property.