MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology company specializing in green engineering processes for silica and silicon material production is pleased to update shareholders on a recent patent filing related to its “Silicon-based anode material initiative.”
HPQ filed a new provisional patent application in France related to a continuous Silicon Oxide (SiOx) manufacturing process based on a modified PUREVAP™ QRR design. As per French law, HPQ acquired all rights held by the inventors for C$90,000.00. The patent protects a unique QRR technology configuration that allows the production of SiOx on the same equipment.
PATENT EXPANDS QRR TECHNOLOGY WITH MINIMAL DEVELOPMENT RISK
The new patented process has a significant advantage over the standard process in that it enables continuous production of SiOx, whereas the latter is produced in batches. The proposed process can be applied to the QRR without major changes in reactor design, reducing the technological development risks. Additionally, it is worth noting that the price of SiOx is approximately 2 to 3 times more expensive than silicon of the same purity [1].
“This new patent application enhances our value proposition for Silicon-Based Anode materials,” said Mr. Bernard Tourillon, President and CEO of HPQ Silicon Inc. “Our unique PUREVAP™ QRR technology, as you know, can convert quartz into a low carbon 3N+ Si in a single step. A modified PUREVAP™ QRR will leverage this 3N+ Si to produce SiOx, which, as you also know, is highly coveted by the battery industry.”
SILICON OXIDE (SiOx) MATERIALS FOR LITHIUM BATTERIES
Silicon suboxides (SiOx) are a promising anode material with high lithium storage capacity. Adding small amounts of silicon oxide to graphite composite electrodes has become a significant trend in the lithium battery industry [2]. This has driven demand for silicon anode materials, which are estimated to reach a potential demand of 300,000 tons by 2030 [3]. The selling price for silicon-based anode materials ranges from US$30 per kg to US$50 per kg [4].
“The growing importance of SiOx material, which necessitates 3N+ Purity Silicon feedstock for its production, in the burgeoning multi-billion-dollar battery material market, is a fact that cannot be emphasized enough,” added Mr. Tourillon.
OTHER NEWS: FIRST CLOSING OF PRIVATE PLACEMENT
HPQ completed a first closing of its Non-Brokered Private placement financing announced on October 16, 2023, for 1,225,000 units at a price of $0.275 per unit for a gross proceed of $337,012.50.
Each Unit is comprised of one (1) common share and one (1) common share purchase warrant of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.30 for a period of 24 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month and one (1) day holding period from the date of closing of the placement.
Mr. Bernard Tourillon, Chairman, President, CEO and Director of HPQ, subscribed for 100,000 units in the placement. Following the completion of the private placement, Mr. Tourillon will beneficially own or exercise control or direction over, directly or indirectly, 9,454,850 shares, representing 2.58 per cent of the issued and outstanding Common Shares of the Company.
The participation of Mr. Tourillon in the private placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions, and TSX Venture Exchange Policy 5.9 — Protection of Minority Security Holders in Special Transactions. In connection with this related party transaction, the company is relying on the formal valuation and minority shareholder approval exemptions of subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the portion of the private placement subscribed by Mr. Tourillon does not exceed 25 per cent of the company’s market capitalization. The Board of directors of the Company has approved the Private Placement, including the participation of Mr. Tourillon therein.
Mr. Patrick Levasseur, a Director of HPQ, subscribed for 100,000 units in the placement. Following the completion of the private placement, Mr. Levasseur will beneficially own or exercise control or direction over, directly or indirectly, 4,540,875 shares, representing 1.24 per cent of the issued and outstanding common shares of the company.
The participation of Mr. Levasseur in the private placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions, and TSX Venture Exchange Policy 5.9 — Protection of Minority Security Holders in Special Transactions. In connection with this related party transaction, the company is relying on the formal valuation and minority shareholder approval exemptions of subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the portion of the private placement subscribed by Mr. Levasseur does not exceed 25 per cent of the company’s market capitalization. The Board of directors of the Company has approved the Private Placement, including the participation of Mr. Levasseur therein.
Mrs. Noëlle Drapeau, HPQ Corporate Secretary and a Director, personally and though its company 6710018 Canada Inc., subscribed for 100,000 units in the placement. Following the completion of the private placement, Mrs. Drapeau will beneficially own or exercise control or direction over, directly or indirectly, 1,133,000 shares, representing 0.31 per cent of the issued and outstanding common shares of the company.
The participation of Mrs. Drapeau in the private placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions, and TSX Venture Exchange Policy 5.9 — Protection of Minority Security Holders in Special Transactions. In connection with this related party transaction, the company is relying on the formal valuation and minority shareholder approval exemptions of subsections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the portion of the private placement subscribed by Mrs. Drapeau does not exceed 25 per cent of the company’s market capitalization. The Board of directors of the Company has approved the Private Placement, including the participation of Mrs. Drapeau therein.
In connection with the Offering, Red Cloud Securities Inc. of Toronto, Ontario, received a cash commission equal to $3,300 and the Company issued to them 12,000 broker warrants. Each Broker Warrant will entitle the Broker to acquire one common share of the company at a price of $0.30 per share for a period of 24 months following the Closing Date.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
OTHER NEWS:
After a careful review of the Nano Silicon material market environment, the technology advancement and associated future development costs needed to get the PUREVAPTM Nano Silicon Reactor (NSiR) to a potential commercial stage, HPQ has advised its technology provider that it no longer intends to pursue the development of this technology. Instead, the company would focus its resources on other market-ready and more promising initiatives, such as its Fumed Silica Reactor project and silicon-based anode material initiative.
REFERENCE SOURCES
[1] Information from supplier quotes received by Novacium SAS
[2] The Royal Society of Chemistry 2020 Sustainable Energy Fuels, 2020, 4, 5387–5416
[3] QY Research, SNE Research, Shinhan Securities / NBM June 2023 Deck page 11
[4] Information from supplier quotes received from GH Technologies (adjusted to include freight and duties)
HPQ Silicon is a Quebec-based TSX Venture Exchange Tier 1 Industrial Issuer. With the support of world-class technology partners PyroGenesis Canada and NOVACIUM SAS, the company is developing new green processes crucial to make the critical materials needed to reach net zero emissions.
