It seems like the subject of shares consolidation is being discussed on other BB and that a poster is even insinuating that I have given instructions to George not to ask me any question on the subject.

Instead of doing that, he could have come on Agoracom and asked the question.

First, let me address the question of the share consolidation. 

There are many schools of thought on the subject of shares consolidation, some investors like small float for the idea that the float is more manageable but it also less liquid, while others prefer a larger float because of its greater liquidity.  

With over half a billion shares outstanding, before taking into consideration the fully diluted numbers, NMX was able to trade up to over $2.00 a share from what our share price is now... 

Look at DynaCERT (DYA), their 300 million share floats did not stop them from going from $0.18 to $1.26 over that last two years.

If the technology is good and the addressable market is large, the share price will perform with the news.  One must, therefore, ask the goal of a poster stating:

“You're not going to get many investors when they learn that there are a third of billion shares (!) out there. That's a massive red flag to any investor. Blue chip companies with market caps in the tens of billions don't have that number of shares out there!”

Are they long investors, or short?

As I stated in May 2018, two years ago, we have no plan of doing one.  I did not think in 2018 that a float of 194 M was too large then and I don’t think that a float of 230 M shares is too large now, especially with the potential of what we have.

HPQ share capital is as follow:                                  NOW                          MAY  2018

Issued and Outstanding:                                             230,537,866                194,867,557

IQ (Quebec Government) Convertible debenture:     16,653,361                             NIL

Warrants Outstanding:                                                62,628,000                  71,166,370

Option:                                                                        11,400,000                  13,200,000

Fully diluted:                                                              321,210,227                279.233,927

I question the logic of stating that our HPQ share numbers is equivalent to 321M, without making any of the following caveats:

When one makes such a claim, he, therefore, assumes that IQ as converted their debt into shares, therefore becoming a large shareholder. This equates to a $1,8 M reclassification of debt into equity, a very positive step for HPQ and its shareholders

He also assumes that all the warrants outstanding have been exercised, there by increasing HPQ cash position by $9 million…. Another positive…

What investors may not have noticed is that about 70% of the 62,628,000 warrants outstanding are divided between the Quebec Government, PyroGenesis, Insiders and investors close to management.  They're not in the hands of greedy investors that only participate in PP’s for the warrants, dumping and even shorting the shares before the 4 months hold period is past… Another positive point going forward… cheaper financing

One last point, one year ago we spin out HPQ gold asset into BGF.  That transaction did represent a sort of share consolidation since for every 20 shares of HPQ investor received 1 new share of BGF.  Base on the comment about the size of the float, you would assume that BGF, with its small float, would have outperformed HPQ with is large float, share performance during the last 12 months.  But that is not the case: HPQ was up 7.69 %, while BGF was down 7.42 % and the TSX V was down 12.53%.

Hoping this will end the questioning about share consolidations.

Regards

Bernard Tourillon
CEO