Developing Processes For The Low-Cost Manufacturing Of High Purity Silicon Metals For Next-Generation Lithium-ion Batteries

Achieved final critical milestones, completing a successful silicon pour

Sponsored
Message: Answer to the question from a shareholder...
Hi,
 
Thank you for reaching out directly to us with your question regarding the financing. 
 
I am pretty certain that many retail investors are probably asking the same question, but lack the courage to either contact me directly or ask the question on Agoracom...
 
The reason for the private placement was explained in the release:
 
The funds are needed to cover our statutory working cap obligations (Auditors, Listing fees, Legal, Transfer agents, etc.) and give us the flexibility needed to continue our ongoing battery-related R&D efforts    
 
I know that not too many investors pay attention to TSX-V listed companies financial statements, but the cost of operating a public corporation our size average around $200,000 per year, and that is before any remuneration is paid to any members of management. 
 
Being a large shareholder of HPQ, I do take into consideration the effect of dilution on my holding, and as a matter of fact, I even limited the size of the December $0.07 financing in the hope that I could get better pricing during Q1 2020.   
 
By February, in order to continue advancing our battery project R&D efforts, I started marketing this financing and the original price was $0.08 per unit.
 
We had the interest to close the financing at that time, but before we could do it, at the end of February, the following two things happened back to back.
 
  • Short-seller sales stop our upward momentum, (TSX venture short report as of February 29, 2020, indicate 1,000,000 shares of HPQ shorted
  • The COVID-19 crisis occurred, and markets all over the world when into a serious correction. During the month of March, HPQ shares prices fell from $0.09 to $0.045 
Contrary to what many retail investors are saying, in these uncertain times, even with a great project like ours, closing financing is not something that is easy and happens overnight.
 
I do not have a Chrystal Ball about our future share price plus market action has been very difficult to predict lately.
 
To complete this financing I started re-approaching long term investors during the month of March and early April, when our share price was trading between $0.045 and $0.06 and that is when the PP share price was finalized at $0.05.
 
My options were either stopping our ongoing Battery related R&D work and hope that I could get a better price later or doing the financing. 
 
We decided to proceed with the financing and I still believe that this is the best option, even if some small investors are going to complain and make a big fuss...
 
I feel pretty confident that HPQ largest shareholder, PyroGenesis agrees with my decision.
 
Regards
 

 

Bernard J Tourillon MBA
Chairman, President and CEO
Share
New Message
Please login to post a reply