HPQ Silicon completes ownership increase in Novacium

Executive Summary

• HPQ Silicon Inc. has finalized an increase in its ownership stake in Novacium SAS, raising its interest from 28.4% to 36.8% following TSX Venture Exchange approval.
• Novacium has amended its articles of association to simplify its governance structure, converting HPQ’s Category P priority shares (which held veto rights) into common shares to facilitate access to French/European financing programs reserved for companies under French control.
• HPQ and Novacium entered into an enhanced license agreement granting HPQ perpetual, royalty-free usage rights to certain technologies, while Novacium secures part of its financing framework; HPQ is deconsolidating Novacium, reclassifying the position from an associate company to a strategic investment.

Key Details

• Ownership Increase: HPQ Silicon increased its stake in Novacium SAS from 28.4% to 36.8%.
• Transaction Approval: The transaction was confirmed by the TSX Venture Exchange on Feb. 24, 2026, accepting the deal previously announced on Feb. 3, 2026.
• Governance Restructuring:
  • Novacium adopted a simple-majority decision-making framework.
  • HPQ converted its Category P priority shares into common shares to remove veto rights that could complicate Novacium's eligibility for French strategic sector financing (energy/defense).
  • HPQ is initiating a deconsolidation process, changing Novacium’s status from an associate company to a strategic investment.
• Enhanced License Agreement:
  • HPQ receives perpetual, royalty-free usage rights to certain Novacium technologies upon full execution.
  • Novacium secures part of its financing framework through this agreement.
  • The agreement supports the deployment of technologies in North America.
• Strategic Rationale: The changes aim to align strategic interests, simplify governance, and accelerate Novacium’s access to European innovation and industrial programs.
• Novacium Technology Focus: High-performance silicon-based battery anodes and hydrogen generation technologies using proprietary silicon-aluminum alloy fuel.

Notable Quotes

• "This increased ownership strengthens our strategic exposure to Novacium's operations and its technological and commercial growth potential in both the near and medium term." — Bernard Tourillon, President and CEO, HPQ Silicon
• "This evolution in governance reflects the growing maturity of Novacium's activities and is intended to support more efficient industrial and commercial deployment of its technologies in international markets." — Bernard Tourillon, President and CEO, HPQ Silicon
• "These strategic adjustments are extremely positive. They unlock Novacium's growth potential while significantly strengthening value creation for HPQ and its shareholders. We believe this synergy positions both companies to play an important role in the development of key technologies supporting the global energy transition." — Jed Kraiem, Founder and COO, Novacium