PyroGenesis announces binding signed contract to acquire its Turcot manufacturing facility

PyroGenesis Inc., a leader in ultra-high temperature processes and engineering innovation, and a plasma-based technology provider to heavy industry & defence, announces today that an agreement has been signed in an out-of-court settlement of its action in the Superior Court of Quebec to order the owner of the property located at 5655 Philippe-Turcot, Montréal, Québec (the "Turcot Facility"), one of the Company's manufacturing facilities, to convey title of the property under PyroGenesis' contractual option to purchase. The settlement agreement allows PyroGenesis to acquire the Turcot Facility for a purchase price of $3.1 million, with all parties to the proceedings providing full and final releases as per a signed agreement which is to be homologated today in the Superior Court of Quebec.

As previously reported by the Company, in 2022 the Company exercised its contractual option to purchase the property for $2,750,000. The action was contested by the owner and, as a result, the Company filed an originating application on August 11, 2022, petitioning the Superior Court of Quebec to order the opposing party to convey title of the property. The parties have signed an out-of-court settlement agreement which is to be homologated today in the Superior Court of Quebec, and as such concludes all legal proceedings with PyroGenesis prevailing in its right to acquire the property for $3.1 million.

The property in question is the Company's 40,902 sq. ft. (3,800 m2) facility located at 5655 Philippe-Turcot, Montréal. The Turcot Facility is located approximately ten minutes (6.2 km) from the Company's downtown Montreal headquarters. PyroGenesis occupies the entire building, which houses manufacturing activities, research and development programmes, pilot plant systems, metal powder production, testing apparatus, and office space. Having occupied the property since September 1, 2012, the Company plans to remain in the facility and is in the process of initiating sale-leaseback discussions with interested parties.

"This is great news, as we have managed to not only secure our key factory location for the long term, but we have also acquired an asset of significant value for our stakeholders," said Mr. P. Peter Pascali, President and CEO of PyroGenesis. "Our purchase price of approximately $76/sq. ft. is significantly under the current market price for this area. Comparable industrial properties in the Philippe-Turcot / Sud-Ouest corridor are currently transacting at approximately $250/sq. ft, based on prevailing leasing rates and market capitalisation benchmarks for urban industrial assets, depending on building quality, clear height, loading configuration, tenant covenant, and redevelopment potential. A sale-leaseback structure could quickly unlock this value which the Company could use to accelerate projects in its various businesses. We look forward to initiating sale-leaseback discussions with interested parties, very soon."