MONTREAL, May 15, 2012 /CNW Telbec/ - PyroGenesis Canada Inc. ("PyroGenesis" or the "Company") (TSXV: PYR), an environmental solutions company that designs, develops and manufactures plasma waste-to-energy systems and plasma torch products, announced today that, in response to the gap period between the announcements in 2011 of the acceptance of its first orders by the US Navy and the US Air Force, and reorders of the Company's marine and land based systems, as well as in light of the current state of the economy, it has recently engaged in significant cost containment initiatives to lower fixed and variable costs.
As noted in the past, the Company expected to be faced with the challenge of managing such a gap period and as a result the Company has decided to proceed with cost containment measures including temporary layoffs, pay cuts, a reduced work week and a permanent relocation of its manufacturing facility.
Management is of the opinion that teaming arrangements with larger more established firms in specific business segments will not only help offset this gap period risk but will also accelerate market acceptance of the Company's technologies. Management has been, and will continue to seek out, focused and targeted teaming arrangements to accelerate the Company's growth. As such, Management is evaluating strategic alternatives available to the Company with the intent of enhancing shareholder value, including but without limitation, alternate debt or equity financing arrangements, seeking a joint venture partner, licensing or sale of certain Corporation assets, or merging, amalgamating, or selling mature parts of the Company to a larger, better-financed entity. Although there is no assurance that these efforts will be successful, the Company is already engaged in early stage discussions in all of these areas.
Management is fully aware of the challenging prospect of rolling out a game changing technology during these trying financial times and is constantly looking at ways to mitigate this risk. These strategic initiatives will have an immediate positive impact on the Company's bottom line while ensuring that its key personnel are available to respond to future contract requirements.
"Pyrogenesis has taken these strategic steps to position the Company in order for it to either meet or exceed future growth and profit expectations," said P. Peter Pascali, President and Chief Executive Officer of PyroGenesis "Management expects these measures to be temporary and that things should return to normal by the end of the summer period."
About PyroGenesis Canada Inc.
PyroGenesis Canada is an environmental solutions company that designs, develops and manufactures plasma waste-to-energy systems and plasma torch products. PyroGenesis' proprietary plasma technologies utilize the intense energy of plasma to gasify and vitrify virtually any type of waste without producing hazardous by-products. PyroGenesis' patented gasification and vitrification technology is different from incineration because it produces a clean synthetic gas from waste, which can be used for power generation. PyroGenesis' technology can also turn waste into a glassy rock that can be utilized as construction material. PyroGenesis has marquee defense industry and civilian customers that are using its technology in marine and land-based applications. For more information, please visit www.pyrogenesis.com
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect", "in the process" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, our expectations regarding the acceptance of our products by the market, our strategy to develop new products and enhance the capabilities of existing products, our strategy with respect to research and development, the impact of competitive products and pricing, new product development, and uncertainties related to the regulatory approval process. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties and other risks detailed from time-to-time in the Company's ongoing filings with the securities regulatory authorities, which filings can be found at www.sedar.com ; Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
Pyrogenesis Canada Inc.
P. Peter Pascali
Chief Executive Officer