HPQ-Sil­i­con does not say why price is down, but ...

Stockwatch Daily - - MINES & METALS - Mr. Bernard Touril­lon re­ports

HPQ SIL­I­CON Re­sources Inc. has ob­served sig­nif­i­cant and un­usual trad­ing in its com­mon stock in re­cent days. Man­age­ment wishes to con­firm that the com­pany’s man­age­ment is un­aware of any ma­te­rial change in the com­pany’ s oper­a­tions that would ac­count for this ac­tiv­ity. Man­age­ment knows of no rea­son that would give rise to such un­usual trad­ing and has no sig­nif­i­cant in­for­ma­tion to dis­close which could lead to such ac­tiv­ity.

“We wish to re­as­sure all of our stake­hold­ers and mar­ket par­tic­i­pants that the fun­da­men­tals of HPQ, in terms of ac­tiv­i­ties pre­vi­ously re­ported on as well as the progress be­ing made thereon, are not only sound but are mov­ing for­ward as ex­pected,” said Bernard Touril­lon, pres­i­dent and chief ex­ec­u­tive of­fi­cer of HPQ Sil­i­con. “As such, we wish to pro­vide the fol­low­ing com­pany snap­shot.”

Pure­vap Gen2:

• Yield-test­ing phase com­pleted;

• Await­ing fi­nal anal­y­sis re­sults and re­port;

• Ad­di­tional test­ing be­fore Gen3 is op­er­a­tional — mid-2019 pos­si­ble. Pure­vap Gen3 pilot plant:

• Equip­ment as­sem­bly on sched­ule;

• Plant buildup on sched­ule;

• Per­mit­ting re­ceived for pilot plant oper­a­tions;

• Patent ap­pli­ca­tions pro­gress­ing as ex­pected.

HPQ pilot plant pro­gram still fully fi­nanced:

• IQ $1.8-mil­lion, 5 per cent and five-year un­se­cured con­vert­ible deben­ture closed in Au­gust, 2018, not af­fected by govern­ment changes in Que­bec;

• $1.95-mil­lion eq­uity in­vest­ment done at 100-per-cent pre­mium to Nov. 7, 2018, close not af­fected by re­cent mar­ket vari­a­tion;

• $1.5-mil­lion eq­uity line of credit for po­ten­tial project cost over­run not af­fected by re­cent mar­ket vari­a­tion;

• HPQ still owns over 500,000 shares of Py­roGe­n­e­sis.

HPQ — Beauce Gold Field (BGF) spinout:

• Spinout on sched­ule to be com­pleted;

• BGF placer-to-hard-rock po­ten­tial well re­ceived;

• De­mand for pri­vate place­ment fi­nanc­ing strong; in­sti­tu­tional par­tic­i­pa­tion; clos­ing soon;

• Date of record will be es­tab­lished af­ter fi­nanc­ing closes;

• In­vestors sell­ing be­fore record date not en­ti­tled to re­ceive BGF shares;

• As per plan of ar­range­ment, the HPQ ra­tio of 4.8 per cent rep­re­sents an 8-per-cent div­i­dend yield based on Nov. 7, 2018, close (100,000 HPQ shares is equal to 4,800 new shares of BGF).

“From a tech­ni­cal per­spec­tive, we can­not un­der­stand the re­cent de­cline in the value of the stock of HPQ,” said Peter Pas­cali, chief ex­ec­u­tive of­fi­cer of Py­roGe­n­e­sis Inc., HPQ’s lead tech­ni­cal part­ner and largest in­di­vid­ual share­holder. “I just want to con­firm that should we see that there is no com­mer­cial out­come pos­si­ble we would not con­tinue pur­su­ing this project. It would not make any sense. We have limited re­sources and as such we must not only ded­i­cate this scarce com­mod­ity to prof­itable projects but to projects that have a fu­ture rev­enue stream. The longer we are on this project, the more we are de­risk­ing it. With our re­cent in­vest­ment in HPQ and the Que­bec govern­ment’s sup­port, I can­not, for the life of me, un­der­stand the re­cent de­cline in the stock. You can rest as­sured it is not from any undis­closed tech­ni­cal fail­ure.”

About HPQ Sil­i­con Re­sources Inc.

HPQ Sil­i­con is a TSX Ven­ture Ex­change-listed re­source com­pany plan­ning to be­come a ver­ti­cally in­te­grated and diver­si­fied high-pu­rity, so­lar-grade sil­i­con metal pro­ducer and a man­u­fac­turer of mul­ticrys­talline and monocrys­talline so­lar cells of the P and N types re­quired for pro­duc­tion of high per­for­mance pho­to­voltaic con­ver­sion.

We seek Safe Har­bor.

Noelle Dra­peau, Daryl John Hodges, Pa­trick Real Levasseur, Richard Mimeau, Robert Ro­bitaille, Peter Hen­der­son Smith, Bernard J Touril­lon

(HPQ) Shares: 222,284,053

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