First Tellurium to acquire 8% interest in PyroDelta

Executive Summary

• First Tellurium Corp. is acquiring an additional 8% interest in its subsidiary, PyroDelta Energy Inc., from minority shareholder Michael Abdelmaseh.
• The transaction increases First Tellurium’s total ownership stake in PyroDelta from 75% to 83%.
• The acquisition is part of a pre-existing "gentlemen's agreement" and is intended to provide First Tellurium with greater control and a stronger negotiating position for future monetization of PyroDelta’s thermoelectric technology.

Key Details

• Transaction Structure: First Tellurium Corp. is purchasing additional shares in its subsidiary, PyroDelta Energy Inc.
• Seller: Michael Abdelmaseh (PyroDelta's only other shareholder).
• Interest Acquired: 8% of PyroDelta Energy Inc.
• Post-Transaction Ownership: First Tellurium’s total ownership increases to 83%.
• Consideration: $240,000 (U.S.) paid to Mr. Abdelmaseh.
• Strategic Rationale: The increased ownership provides First Tellurium with greater control and a stronger negotiating position with customers and investors.
• Future Outlook: Management notes that various parties and technology companies have expressed interest in acquiring part of PyroDelta, and the stronger control position is expected to create better opportunities to monetize the thermoelectric technology and investment.

Notable Quotes

• "This purchase is part of a gentlemen's agreement we had with Michael when we made our original investment in PyroDelta... The increased ownership gives First Tellurium greater control and a stronger negotiating position as we engage with customers and investors." — Tyrone Docherty, President and CEO
• "The stronger control position will provide better opportunities to monetize the thermoelectric technology and our investment in PyroDelta. Ultimately, we believe it will help us provide better value for our shareholders." — Tyrone Docherty, President and CEO