Additive Manufacturing (3D Printing)
PyroGenesis to spin off its 3D printing business
April 7, 2016 by Manufacturing AUTOMATION
Apr. 7, 2016 – PyroGenesis Canada, a clean-tech company that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, announced today that it plans to spin-off 80 per cent of its 3D printing business into an independent publicly-traded company. Tentatively referred to as “3DCo,” the name of the company will be determined at a later date.
After the successful spin-off, 3DCo will have all rights to produce metal and alloy powders for additive manufacturing using PyroGenesis technology and to distribute powder production systems and equipment under an exclusive worldwide license with PyroGenesis. PyroGenesis says it will continue to benefit from supplying systems and equipment to 3DCo with traditional margins, and provide standard maintenance and technical support services to 3DCo for each system purchased, for up to $750,000 per system per year.
“Spinning off 3DCo will help attract an investor base best suited to the company’s unique value proposition, particular business operations and financial characteristics, thereby maximizing shareholder value and placing it in a better position to ramp up, generate revenues, and develop strategic relationships/partners than had it remained part of PyroGenesis,” said Peter Pascali, president and CEO of PyroGenesis. “As such, 3DCo will be able to sharpen its strategic focus and provide flexibility to capitalize on the unique growth opportunities within its market sector. At the same time, it will provide PyroGenesis with a source of repeat business and recurring revenues as well as an investment position in a vibrant public company.”
This transaction is expected to be staged over the next four months. According to the company, the spin-off is intended to be structured as a tax-free transaction to shareholders for Canadian income tax purposes.
3DCo is expected to be in commercial production as early as Q3 2016, with a second system coming online in Q1 2017.