PyroGenesis Enters Binding LOI To Acquire AirScience Technologies
PyroGenesis Canada Inc. (TSX: PYR) announced today that it has signed a letter of intent to acquire AirScience Technologies Inc. (AST) for $4.8 million. The agreement is binding on AST but will be binding on PyroGenesis after the latter’s satisfaction with due diligence currently in progress.
The $4.8 million transaction is payable at the final closing and PyroGenesis has the discretion to pay it in cash or through shares. At the close of the transaction, the payment will be put in escrow and will only be released when certain identified milestones have already been achieved by AST.
Peter Pascali, CEO of PyroGenesis, listed a number of points in which the due diligence requirements will revolve around. Diligence is to revolve around AST’s approximately $10-12 million backlog expected to be completed in 18 months, a further $12-14 million in the pipeline, and stated gross margins which were reportedly in excess of 40% from 2016-2019. AST reported approximately $4.7 million in revenues for 2019.
AST is a Montreal-based company that designs and builds biogas upgrading systems and equipment. PyroGenesis expects that AST’s capability of upgrading biogas into renewable natural gas while reducing carbon emissions “fits well with PyroGenesis’ stated strategy to become a world leader in reducing greenhouse gas emissions.”
This acquisition follows the company’s previous announcement of pursuing a merger and acquisition growth strategy. However, with the announcement of the acquisition today, Pascali also said that the company “may do one more acquisition, but [its] attention at this time is not to pursue any more than that.”
PyroGenesis Canada Inc. last traded at $6.29 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
