PyroGenesis Canada Inc (CVE:PYR) (OTCMKTS:PYRNF) told shareholders on Friday that the plasma manufacturer has a backlog of C$8.5 million in signed contracts that will contribute to revenue growth going forward.
The Montreal-based company released its quarterly results on Thursday evening that reflected management’s decision last year to pursue strategic partnerships at the expense of immediate revenues.
Shares of PyroGenesis rose 3.7% in Toronto on Friday to sit at C$0.56 and jumped 2.6% on OTC markets to hit US$0.41.
According to PyroGenesis’ CEO Peter Pascali, the result of these decisions are “imminent” contracts of over C$32 million.
Pascali said that the future contracts and associated revenues justify management’s decision. “As I have said in the past, 2018 was the year in which the company successfully positioned itself with unique and strategic partnerships, geared to effectively accelerate commercialization, and we are benefiting from these efforts. Again, we believe that these financials should be viewed in this context.”
Total revenue in 1Q 2019 were $736,000 compared to C$2.1 million during the year-ago quarter. The company narrowed its net loss to C$879,000 compared to more than C$1 million in 1Q 2018.
PyroGenesis highlighted new partnerships with multi-billion-dollar entities such as the US Navy within the military line, a Japanese trading house as a toll manufacturing client and France’s Aubert & Duval within the additive manufacturing line of business.
The company is anticipating signing contracts valued at over $30 million in revenues over the next 18 months, nearly six times 2018 revenues.
Another recent announcement is the decision to spin out the company’s additive manufacturing capabilities. The decision to spin out the division was taken in order to attract an investor base best suited to the additive manufacturing (AM) value proposition, particular business operations, and financial characteristics.
The company is hoping that the spinout will maximize shareholder value by placing the new company in a better position to generate revenues and develop strategic relationships than if it had remained part of the PyroGenesis stable of technologies.
Another step geared towards unlocking shareholder value is uplisting PyroGenesis’s shares to a more senior exchange.
PyroGenesis also announced on Friday that CEO Pascali had increased his beneficial ownership in the company to 52.8% from 50.4%. The company said it wanted to clarify that it was not a private placement, no money was received by the company and no new shares or warrants were issued in relation to the transaction.
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