Vancouver, BC, June 6, 2014 - PyroGenesis Canada (PYR.V) reported that following 18 months of extensive discussions with specialty military groups, the company has been awarded a contract to engineer a Tactical Mobile Plasma System for the Destruction of Chemical Warfare Agents, such as those being dealt with in Syria.
PyroGenesis, the world leader in providing innovative plasma torches, plasma waste processes, high-temperature metallurgical processes, and engineering services to the global marketplace, has developed a reputation of providing unique high performing plasma based solutions. This reputation, combined with its long standing relationship with the US Navy to provide easy to operate and reliable plasma based waste destruction systems, made PyroGenesis an obvious choice for this mission.
Although the destruction of massive amounts of chemical weapons is being addressed by a US Army developed technology, the situation in Syria highlights the urgent need for a tactical mobile unit that can be readily deployed, have rapid destruction capabilities and generate no toxic by-products.
Gillian Holcroft, Executive Vice President, Strategic Alliances stated, "Delivering a technology that can be dropped off the back of a plane in the harshest environment to instantaneously destroy some of the most dangerous substances known to man has significant commercial ramifications. The system is scalable and, as such, larger units can be delivered for the in situ destruction of both hazardous chemicals and biological threats. The risk and expense of moving toxic substances will soon be avoided through the deployment of a PyroGenesis Tactical Unit."
PyroGenesis is working on the first phase, which is under contract with an International Military Consortium. Under Phase 1, PyroGenesis will engineer a self-contained mobile tactical unit, with Phase 2 comprising the fabrication and delivery of the plasma unit to a consortium that will test it using simulated and actual chemical warfare agents. Delivery of this Tactical Plasma System is expected to be completed in 2014, generating approximately $1.5 million in total revenues.
Although funds for the second phase have been allocated but not yet contracted, management is confident the funds are forthcoming. They do caution, however, that given the international and complex nature of the project and the constantly changing situational landscape, it is possible, although unlikely, that Phase 2 could be delayed or cancelled.
As currently envisioned, PyroGenesis is the only technology being considered as a tactical mobile unit by its client.
P. Peter Pascali, President & CEO added, "This opportunity arose as a natural extension of PyroGenesis` strategy to focus on niche high value markets that leverage off of PyroGenesis` core competency of being leaders in plasma based solutions, and, as such, we expect to continue to be involved in discussions with the military as the problem of chemical weapon destruction is debated and evolves."
The company currently trades at $0.59 and with 80.5 million shares outstanding, is capitalized at $47.5 million.
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Source: InvestmentPitch via GlobeNewswire