PyroGenesis Canada Inc., a company specializing in the production of plasma atomized metal powder, plasma waste-to-energy systems and plasma torch products, has announced the establishment of a new spin-off focused on additive manufacturing powders. The spin-off, dubbed PyroGenesis Additive, was recently approved by the Montreal-based company’s Board of Directors.
It is still early days for the AM-focused spin-off. The terms of the new company have not yet been outlined or approved but the Board of Directors has sanctioned the implementation of the necessary steps to get the spin-off going. Specifically, the new division will specialize in developing, commercializing and advancing PyroGenesis’ plasma atomized metal powder for the additive manufacturing industry.
“The reason to spin-off PyroGenesis Additive is primarily to attract an investor base best suited to their unique value proposition, particular business operations, and financial characteristics, thereby maximizing shareholders’ value and placing it in a better position to generate revenues and develop strategic relationships than had it remained part of the PyroGenesis stable of technologies,” explained P. Peter Pascali, President and CEO of PyroGenesis. “A spin-off creates simplicity which in and of itself increases interest, all to the benefit of shareholders.”
The terms of the spin-off will be released once they have been approved by the Board of Directors. At this point, the company has disclosed that it expects the spin-off will represent less than 50% of PyroGenesis’ overall assets.
“Both uplistings and spin-offs require regulatory approval and depending on the type and number of questions from the regulators, will determine the time it takes to complete. Assuming nothing out of the ordinary, either one could take 4-6 months,” Pascali said about the process going forward. “Next steps would be to engage a Canadian based law firm, which we are in the process of doing, and to engage an investment bank. We are currently receiving proposals from investment bankers on both sides of the border.”
As a leader in plasma processes and products, PyroGenesis has worked with partners and clients in a broad range of industries, including defense, mining, oil & gas, environmental industries and more. Its ability to produce plasma atomized metal powder has been of particular interest to the additive manufacturing industry. In light of this, the company has been scaling up its AM powder production efforts.
In October 2018, for instance, the company opened a new metal powder facility for additive manufacturing equipped with state-of-the-art equipment for producing plasma atomized Ti-6Al-4V powders for the AM market and, specifically, for the aerospace and biomedical industries. The company also recently partnered with Aubert & Duval to supply plasma atomized titanium powder to the additive manufacturing market in Europe.
With the new PyroGenesis Additive spin-off, it will certainly be interesting to see how the company’s AM powder production capabilities expand and evolve.