MONTREAL, July 21, 2015 /CNW Telbec/ -PyroGenesis Canada Inc. () (TSX-V: PYR), a TSX Venture 50® clean-tech company (the "Company" or "PyroGenesis") that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announced today that it has signed a previously announced exclusive marketing license agreement (the "Agreement") with Yasui Facilities, Inc. ("Yasui") of Japan.
Yasui is one of Japan's preeminent Architectural/Engineering firms who works with a consortium of companies that, amongst other projects, build incinerators. Yasui provides the local engineering and permitting expertise that PyroGenesis requires to conclude various contracts under discussion.
As previously announced, the terms of the Agreement provide Yasui with an exclusive license to market PyroGenesis' line of plasma waste processing systems in Japan for a period of five (5) years with an automatic five (5) year renewal option based on certain performance milestones.
In exchange for such exclusivity, Yasui will pay PyroGenesis an exclusivity fee of $1.5MM in one installment, to take effect upon receipt of the Japanese permit, which is expected in less than one (1) year. In addition, Yasui undertakes to pay all costs associated with the Japanese permitting process, which are estimated to run into the $100,000's, and which have already commenced. Yasui also undertakes to reimburse PyroGenesis for future costs incurred in developing the Japanese market. On the same note, PyroGenesis' Business Development Manager responsible for the Asian market has been in Japan for the past two (2) months supporting Yasui's permitting and marketing efforts.
This Agreement has effectively enabled PyroGenesis to bypass the traditional method of penetrating the Japanese market, which is usually via local trading houses, and, as such, has allowed the Company to save a substantial amount in middle-man fees.
"We are currently in discussion with end users for sales of groupings of products," said P. Peter Pascali, President & CEO of PyroGenesis, "with each grouping being independent from one another. For instance, we are currently discussing groupings of 50 TPD waste treatment systems; hospital/low level radioactive waste systems; multiple small transportable mobile systems; and several other niche applications. We don't expect any of these contracts to close before Q4-2015. However, we are highly confident that we will close something of significant value by year end."