Pyrogenesis Update

I recently wrote about the stock that I think is the trade of the decade: Pyrogenesis. This week Pyrogenesis’ business partner released this news. After much delay and perceived uncertainty Drosrite International will finally get the down payment on it’s Drosrite deal with Radian Oil & Gas .  I expect that after this money is deposited that it will then send to Pyrogenesis the money owed to it. This should happen if not next week then the following one at the latest.

The delay in getting paid on this deal and the start of the aircraft carrier deal I outlined last time is I believe the main reason that Pyrogenesis has fallen from the $0.50 to $0.60 range down to about $0.40 just before the news. Of note this news was released by Drosrite International rather than Pyrogenesis itself. I don’t know how closely Pyrogenesis’ investors are following news from Drosrite International, so it’s possible some may not be aware of this yet.  The stock price has risen a bit to $0.425 on the back of the news which is a step in the right direction. Though when Pyrogenesis receives the money from Drosrite International and I would think puts out it’s own press release then this news will be more wide-spread. This should really begin the price climbing.

I have put a very significant portion of my portfolio into this trade and I believe this news release is the inflection point that will ultimately drive TSE:PYR up to $1.40 and maybe beyond.

2 thoughts on “Pyrogenesis Update

  1. How much does Drosrite owe Pyro? As of the last balance sheet date, PYR has a working capital deficit of $8.5mm which has undoubtedly continued to grow over the last 4 months.

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  2. The exact nature of Pyrogenesis’ relationship with Drosrite International is not disclosed, but I kind of think that Drosrite International is mostly just a pass through entity used by Pyrogenesis to get around issues between Canada and Saudi Arabia that were going on at the time. The CEO has said that Pyrogenesis’ margins on this deal will be similar to their historical margins which have been around the mid 40% range.
    The main story for Pyrogenesis right now is the imminent transition between a loss making company to a profit earning one. There may be a capital deficit now, but as soon as profits start rolling in then it should disappear fairly soon. Also it is slightly possible that Q4 2019 could be close to break-even or maybe even profitable. In the news release linked in the beginning of this article it stated that work on the Drosrite contract had been going on for months so some of that work could have occured in 2019 so the company could show that on it’s financial statements for 2019. Also it is possible that sales of 3D printing powders could have begun in Q4 2019, we will have to wait for the report to see.

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