HPQ Silicon Finalizes Increased Ownership in Novacium SAS

Executive Summary

• HPQ Silicon Inc. received TSX Venture Exchange approval to increase its stake in Novacium SAS from 28.4% to 36.8%, converting its Category P priority shares into common shares.
• Novacium’s shareholders approved governance changes that replace the veto‑right structure with a simple‑majority decision framework, facilitating access to French/European financing programs.
• HPQ and Novacium entered an enhanced license agreement granting HPQ perpetual, royalty‑free usage rights to certain technologies and providing Novacium with part of its financing framework.

Key Details

• Ownership Increase: Stake raised to 36.8% (from 28.4%) following TSX Venture Exchange bulletin dated Feb 24 2026 confirming acceptance of the Feb 3 2026 transaction.
• Governance Restructuring: Novacium’s articles amended to adopt simple‑majority voting; Category P priority share converted to common shares, removing HPQ’s veto rights and simplifying control.
• Strategic Rationale: Governance changes aim to improve Novacium’s eligibility for French/European public financing programs reserved for companies under French control, especially in strategic energy and defense sectors.
• Deconsolidation Process: HPQ’s position shifts from an associate company to a “strategic investment,” while maintaining close alignment on technology development and commercialization.
• License Agreement Enhancements:
• Novacium secures part of its financing framework under the agreement.
• HPQ receives perpetual, royalty‑free usage rights to designated technologies upon full execution.
• Operational Focus of Novacium: Development of high‑performance silicon‑based battery anodes and hydrogen generation technologies.
• Expected Benefits: Expanded access to European innovation and industrial programs; accelerated commercialization of technologies in North America and Europe; strengthened value creation for HPQ shareholders.

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 & CEO, HPQ Silicon Inc.
• “These strategic adjustments are extremely positive… they unlock Novacium’s growth potential while significantly strengthening value creation for HPQ and its shareholders.” – Jed Kraiem, Founder & COO, Novacium

Materiality Assessment: Material – Positive (significant change in ownership, governance, and licensing that materially impacts HPQ’s strategic position and future financing opportunities).