HPQ Silicon Increases Equity Stake in Novacium SAS

MONTREAL, Canada — HPQ Silicon Inc. (“HPQ” or the “Company”) (TSX-V: HPQ) (OTCQB: HPQFF) (FRA: O08), a technology company specializing in green engineering of processes is pleased to inform shareholders that it is increasing its equity position in its France-based partner, NOVACIUM SAS (“Novacium”), from 20% to 28.4%.

HPQ will increase its stake under the terms of an arm’s length agreement signed on February 6, 2025, with Novacium other shareholders whereby its stake will increase by 84 shares of Novacium, equal to 8.4% of the outstanding equity of Novacium, for an aggregate price of C$3,722,250 to be distributed among them.

The payment of the sale price will be made through the issuance of 17,312,790 units of HPQ’s capital stock at a price of $0.215 per unit.

Each unit will consist of one common share and one share purchase warrant entitling the holder thereof to purchase one common share of HPQ’s capital stock at a price of $0.25 for a period of four years following the closing date of the transaction. All shares issued in connection with this transaction will be subject to a hold period of four months and one day from the closing date of the transaction.

This agreement remains subject to approval by the TSX Venture Exchange and relevant regulatory authorities.

HPQ’s decision to increase its stake in Novacium at this time is driven by the following factors:

• Stronger-than-expected project outcomes – Novacium-led initiatives, including silicon-based materials for batteries, autonomous hydrogen (METAGEN™), and waste-to-energy solutions, are delivering better-than-anticipated results and attracting commercial partnerships with parties under NDA.
• Larger market opportunities with faster commercialization – The addressable markets for these projects are proving to be larger than initially estimated, with lower capital expenditure (CapEx) requirements, enabling a faster path to commercialization.

“HPQ increasing its equity stake in Novacium, along with Novacium’s founders taking an equity stake in HPQ, represents a strong alignment of our strengths as we continue to develop groundbreaking technologies,” said on behalf of the founder Dr. Jed Kraiem, Chief Operating Officer of Novacium.

“This is more than just a financial transaction—it’s a strategic investment that accelerates HPQ’s path to commercialization and revenue generation. Additionally, having Novacium’s founders as HPQ shareholders reinforces our shared vision for driving the success of both companies,” said Bernard Tourillon, President and CEO of HPQ Silicon Inc. and NOVACIUM SAS.

Estimates of addressable markets per projects:

• The market for silicon-based anode materials is estimated to be worth between US$ 22 billion and US$ 33 billion by 2030 [1],
• The worldwide market for autonomous hydrogen stations is estimated to be worth today between US$ 800 million and US$ 1,6 billion [2]
• The worldwide market for Black Aluminum Dross is estimated to be worth today between US$ 1,6 billion and US$ 2,3 billion [3]

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REFERENCE SOURCES

[1] Management’s estimates about the size of the silicon-based anode materials market can be found in HPQ Feb 5 release.
[2] Management’s estimates about the size of autonomous hydrogen stations, number to be updated when needed.
[3] Resources, Conservation and Recycling, November 2021, A new approach to recover the valuable elements in black aluminum dross. Link to Article