HPQ Silicon Increases Equity Stake in Novacium SAS
HPQ Silicon Inc. is increasing its equity stake in Novacium SAS from 20% to 28.4% through an agreement valued at C$3.72 million. The move is driven by stronger-than-expected project outcomes and larger market opportunities.
MONTREAL, Canada – HPQ Silicon Inc. announced on February 6, 2025, that it is increasing its equity position in its French partner, Novacium SAS. The company will raise its stake from the current 20% to 28.4% through the acquisition of 8.4% of Novacium's outstanding equity.
The transaction, valued at C$3.72 million, is set to be paid for through the issuance of 17,312,790 HPQ common stock units. Each unit comprises one common share and one purchase warrant to acquire another share at $0.25, exercisable for four years. The deal is subject to approval from the TSX Venture Exchange and regulatory bodies.
HPQ's decision to increase its investment is attributed to Novacium's projects delivering results exceeding expectations. These include silicon-based materials for batteries, autonomous hydrogen (METAGEN™), and waste-to-energy solutions. Furthermore, market opportunities for these ventures are showing larger potential than initially forecast, with lower capital expenditure requirements facilitating faster commercialization.
"This is a strategic investment that accelerates HPQ’s path to commercialization and revenue generation," stated Bernard Tourillon, President and CEO of HPQ Silicon Inc. The increased stake and the reciprocal shareholding by Novacium's founders signal a strengthened alignment and shared vision between the two companies.