HPQ Silicon Increases Equity Stake in Novacium SAS, Strengthening Global Exposure and Short and Medium-Term Value Creation

Executive Summary

• HPQ Silicon Inc. increased its equity interest in Novacium SAS from 28.4% to 36.8% (an additional 8.4%) for a total consideration of C$4,033,425 (€2.5 M).
• The purchase was paid for with the issuance of 22,407,916 HPQ common shares at a deemed price of C$0.18 per share, representing approximately 5.2% dilution to existing HPQ shareholders.
• The transaction strengthens HPQ’s global exposure, royalty participation and alignment with Novicium’s multi‑platform technology portfolio (silicon anodes, hydrogen systems, circular‑economy solutions).

Key Details

• Transaction Structure – HPQ acquired 84 additional shares of Novacium, raising its ownership to 36.8%; consideration paid via issuance of common shares to three existing shareholders:
• Shareholder 1: 11,203,958 shares
• Shareholder 2: 5,601,979 shares
• Shareholder 3: 5,601,979 shares
• Valuation – Implied enterprise value of Novacium remains at approximately €30 M (unchanged from the February 2025 transaction).
• Share Issuance – 22,407,916 HPQ common shares issued at C$0.18 per share; subject to a hold period of four months and one day post‑closing.
• Dilution Impact – Approximate 5.2% dilution to HPQ’s existing shareholders based on current issued capital.
• Regulatory – Transaction pending approval by the TSX Venture Exchange and applicable securities regulators.
• Strategic Rationale – Enhances HPQ’s participation in international revenues, royalty flows, and future upside from Novacium’s technology platforms; improves alignment on IP stewardship and commercialization strategy; provides optionality for future partnerships or monetization initiatives.
• Technology Portfolio Highlights (Novacium):
• Silicon‑based drop‑in anode material for Li‑ion batteries – aims to boost energy density & cycle life without major plant changes.
• Non‑electrolyser hydrogen generation systems with recoverable thermal energy, targeting off‑grid and industrial applications.
• Circular‑economy waste‑to‑energy processes (e.g., black dross valorisation) producing hydrogen and other value‑added outputs.

Notable Quotes

• “This investment reflects a disciplined capital allocation decision rather than a tactical adjustment,” said Bernard Tourillon, President & CEO, HPQ Silicon Inc.
• “HPQ’s increased participation reflects the strength of our collaboration and the progress we have made together,” said Jed Kraiem, Founder & COO, Novacium SAS.