Business
PyroGenesis Cancels Previously Announced Exclusive Asian Marketing Agreement in Favor of Exclusive License Agreement with Yasui Facilities Inc. of Japan; Contracts Underway; Testing in September
MONTREAL , June 17, 2015 /CNW Telbec/ - PyroGenesis Canada Inc. ( http://pyrogenesis.co...
About this update from Pyrogenesis Inc.
[{"type":"text","content":"\n\nMONTREAL, June 17, 2015 /CNW Telbec/ - PyroGenesis Canada Inc. (http://pyrogenesis.com) (TSXV: PYR), a TSX Venture 50® clean-tech company (the \"Company\" or \"PyroGenesis\") that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announced today that it has cancelled a previously announced exclusive marketing license agreement with an unnamed Asian entity in favor of an exclusive license agreement (the \"Agreement\") with Yasui Facilities, Inc. (\"Yasui\") of Japan.\n\nYasui is a one of Japan's preeminent Architectural/Engineering firms who works with a consortium of companies that have, amongst other projects, built incinerators. Yasui provides the needed local engineering and permitting expertise that PyroGenesis requires to conclude various contracts under discussion. \n\n\"This Agreement with Yasui has effectively enabled us to bypass the traditional method of penetrating the Japanese market, which is usually via local trading houses,\" said P. Peter Pascali, President & CEO of PyroGenesis, \"and as such, will allow the Company to save a substantial amount paid in middle-man fees.\"\n\nThe Agreement, which was reached recently, has been drafted for final legal review by both parties, and has a completion deadline of July 16, 2015. In the interim, the parties will act according to provisions provided therein and outlined in a MOU dated June 4, 2015.\n\nThe terms of this Agreement permit Yasui to exclusively market PyroGenesis' line of plasma waste processing systems in Japan for a period of five (5) years with the possibility of an automatic five (5) year renewal based on certain performance milestones. In exchange for this exclusivity, Yasui undertakes to pay all costs associated with the Japanese permitting process, which are estimated to run into the $100,000's, and which have already commenced, and to reimburse PyroGenesis for costs incurred in developing the Japanese market. Furthermore, upon receipt of the permit, which is expected in less than one (1) year, Yasui will pay PyroGenesis a onetime exclusivity fee of $1.5MM in one installment.  \n\nMr. P. Peter Pascali provides additional information regarding the transaction and its impact on the Company in the following Q&A format: \n\nWhen will Yasui start the permitting process, and ma...