This Small Cap Company Is Shattering The Silicon Industry

[Music] it's December and if you're looking for an emerging small cap stock that is literally shattering the performance metrics of an old conventional industry then you're going to love this interview with hpq silicon why silicon Metal Manufacturing is the largest emitter of CO2 on a per ton basis on the planet hpq silicon is on the verge of shattering the manufacturing process for fume silica which is used in cosmetics toothpaste powdered foods and so many other products but needs to burn silicon the process how disruptive is the hpq Silicon process the reductions in greenhouse gases energy

consumption the elimination of hydrogen chloride gas led the company signed a letter of intent with the vonic corporation A1 billion doll company and the inventor of fume silica earlier this year and today what we're talking about is hpq silica pul fume silica reactor project update in other words it's an update Bernard welcome back my friend thank you thank you lot of nice reaction to this news people are feeling shareholders feel like they're feeling something getting closer and closer and I think this is the excerpt that got him excited quote we continue ongoing discussions to secure

off take agreements does this reflect confidence that the pilot plant the samples shipping all that's going to be successful is that is that what people should be reading into that because that's sure seems what it feels like no that's exactly what we feel what we believe we actually you know strongly believe that we will replicate without any big issues outside of our and deep and when in big issues what we've done at lab scale and on a much bigger piece of equipment that can deliver kilogram per hour size capacity so we feel very confident we're

going to get there we understand what it is we're just taking the time required to do it well so so no like I I have no doubt that we're going to have a um offtakes agreement you know once we validated the concepts we're just at that like that cuss moment where we're almost there we you know it's like uh you know before my wife gave birth you know we were not parents and after she gave birth we were parents so we're just in that position now where exactly is the baby ready to go do we

need the C-section you know I'm sort of exaggerating but you understand the concept the concept is are we pacing are we pacing in the hospital room oh trust me we we are pacing and there's Uncle ionic pacing right next to me okay is a great analogy so and Uncle ionic is uhh optimistic can't wait is that how how's Uncle ionic they fully understand that if we make it it okay and we will make it okay now this is why it's so binary it's like it's if when we make it should be the better sentence uh

then the races really start with regard to uh finalizing something much more concrete as I've said before um they'd be pretty willing and able to start now to do those type of discussion and we prefer to wait until we got the pilot plan working and when I say we pyro Genesis at us because we're sort of partner in this so that's really more a question of of uh business philosophy of waiting till you know until we will have a bigger negotiation position to to get the best deal for for us that's really where it is

but I understand the frustration with everybody trust me I I live the same frustration but I understand frustration I think it's more um just that you know everyone's waiting for the baby to keep using the analogy right it's like everyone a baby there a baby comeing went I think it's more that kind of nervous nervous excitement I guess that would be a better way to say it than than frustration so yeah it's it's more it's more nervous about the timeline as opposed to nervousness about the fact that you know it's going to happen like it's

you we know we know the machine is going to work we we feel very comfortable we're going to make fume silica uh we we don't foresee any reason for uh any negativity over this other than you know R&D takes time and timelines are shitty in R&D um can you elaborate maybe a little bit you've alluded a little bit the when do you think samples will actually be ready to ship to ionic when they going to be shipped I actually you know from the information I have I I I know that we're going to have some

sample materials uh during December okay and if it follows the same routine that it did when we did at Pilot scale at lab scale okay the first material might just you know the first material we we have no expectation the first material is going to be great you know that's something I've learned from the qrr type of things but the only thing I want is for the first material to be as good as the first material we did a lab scale then that's because we know once we got this we know exactly the path to

go do it and there's no there's no reason for us not to do this okay there's really no reason for not that not to happen so those you know that's exactly how how it started with all the concept at labscape when we did it and it ended up with you know with us um presenting a material that meet ionics quality so I have to understand we're replicating what we've already done just at a larger scale okay and if I can if you allow me like we we explain a bit in the press release okay we

say the FSR pilot plant represents a Pioneer state-of-the-art prototype system meticulously designed for seamless integration of subsystem the subsystem operating in synchronization to enable the production of fume silica within the reactor okay uring control trans for to Downstream recovery and optimizing extraction all right at lab scale the only thing we had to do was make the fume silicon the reactor okay so the only so that part we're not really worried about it's the two other part we're working on that we're sure we're sure it's going to work because it's not rocket sign we're not Reinventing

the wheel but we have to do it the first time around so you know having fume silica of good quality at the end of the reactor not an issue for us it's make sure we have it in the packaging department where we end up packing and shipping it because that's that's what makes it commercial now that is 100% normal expected nothing out of the ordinary but until it's you know and this is where we are we have steps to do we we got here and we're there so December December is it it sounds like you

just didn't want to sacrifice quality for Speed so it sounds like and again like I'm gonna ask you to elaborate but it sounds like hey guys if we want to move this really fast and get samples to ionic sounds like you could have already done it or accelerated that it sounds like though what you want to do is make sure hey I'm not going to sacrifice quality for Speed we want to get the first samples exactly as we did so is that accurate yes and no it's just because the system is bigger okay it's not

it's not designed like the first one where you basically did it and you did remember the first system did a few grams okay now we're talking about doing kilograms so it wasn't the same thing we just you we just plugged him from the reactor and got it to move but doing the next step nothing there's nothing really extraordinary with R&D it's just doing the right implementation making sure that you know you're you know you're doing your list you you check it at twice that's just what it is we you know going fast to do like

many other Junior companies okay that had their Heyday of going of going through the roof and then after that they can't follow up on the delivery is the issue it's not I it's not I'm not even worried that we're going to do the material I want to make sure we can do it rep repetitively consistently and a high quality of material that's what our focus is and that you're not concerned about it you just you just want to get it right that's it it's not like it's not like you're saying George we we we want

to focus on this but we don't know if we're going to get there it sounds like like look pyro Genesis uh advise I'm just reading right so the first series of process material tests are scheduled start in December like we saying uh so it sounds like everyone's on board you you guys all you guys are all on the same page yeah and we basically up up in achieving uh what what do we say following successful completion the program will will commence manufacturing kilograms of fume silica remember pilot plant was barely capable of Labor equipping only

a few grams of fume silica so you understand the size of the scale of and that's that's the entire reason why it's taking us it seems I would let say it seems like it's taking us longer I I know that Peter used to have a saying uh slow is fast and Fast is good or whatever like another bism another bism another what say and I fully understand the frustration this brings to investors because I have the same the same frustration I am also an investor but I look at the big picture I look at where

each PQ is right now in December 2024 okay compared to where we were in 2023 it's not the same company way what Peter would say and I think is made famous by the movie Shooter by Mark wallberg slow is smooth but smooth is fast so other words going slower that's the one going slower actually ends up being faster rather than just being Reckless and trying to go as fast you can and tripping and falling and all that so slow as smooth smooth as fast you also threw uh this nice little tidbit I noticed just a

little crumb what where you say additional evaluations may also be conducted by other parties under NDA yeah but that that tidbit has been there since the beginning I've always put it I see it again it sounds and and when you mention right after we continue ongoing discussions to secure off agreements what is is the level of Interest Beyond uncle ivanic and we know that ionic is you know the the the girl you brought to the dance and all that so no one no one is uh no one's trying to shy away from ionic but I'm

just curious what is the level of Interest out there uh with other parties that are under NDA do they see the same thing are are do you still have that um industry lead are they is that is that the Viewpoint of HBQ well first of all there's nobody else be thinking the how to re manufacture fume silica other than I think using corn husks okay so I'm not that worried about uh our our leadership position in that technology I'm really not worried um as for the other one it's going to be the same thing you

know uh ionic wanted to make sure that they were the first one to come to the dance but you know once we reach those step everybody's going to come in so it's not for me it's not an issue like they'll they'll be more than one like I got a call from somebody says you know I need this amount of this type of material um and you know could could you start supplying us and we can take a look at working together it says okay sure so you do understand like I once we this why I

it's a very binary type of situation once we start making it then the interest and the pressure to close a deal from the other part is going to go rack it up multiple Notches at this moment it's a game of chicken and if HP would you say a game of chicken or say more just a case of negotiation you know uh but in in negotiation Japanese negotiation no one's talking you're not talking first yeah yeah that that and that's a key point but and if hpq okay only had the fume silica reactor as an asset

it was developing like I was dare to say 90% of other Junior companies are they only have either one great property is on one thing issue um I would understand the overbearing negative negativity that can come up because you know you know it's we're taking the time to do things right but HBQ is much more than that like in in in the last six six months we've announced battery results that are phenomenal okay and it's maybe not be translating into shareholder valuation move but it's definitely definitely being translated interest from multiple players in the industry

okay and you know like with ionic it took me what s months to get to the LOI I'm about the same timeline with the other materials I'm coming so I can come up withus and those type of things coming around for the battery areas for the hydrogen we've announced that you know we got the French military interested and they're going to find us the building the first prototype so hpq is more than just a fume silic reactor but the fume silic reactor will be the biggest is is the closest Catalyst to something commercial that part

I understand and that what gives you the confidence the patience to wait a little longer before you secure off agreements knowing that you're not a one- trick pony that you've got four legs with three that are really that are really r right the you've got obviously fum silica the the the silicon anodes and now uh with what's happened with the hydrogen uh the other just last week or a few days ago whatever it was um is that what gives you the conference Bernard where you can you guys as a company can say hey we don't

have to rush into something because if you were just a one- trick pony you'd probably be much more likely to say let's nail something down you know we need to nail something down and secure this company and make sure ERS don't go away but is that what gives you that yes but it also makes me sure if if you're in that position okay the deal wouldn't secure it wouldn't secure your your AC be much more dangerous okay to yeah that's true you'd be a lot weaker so yeah be a lot work we're not like we

may look on certain aspect like we're we but we're not weak with everything that we have with the discussion I'm having with all the different parties um as they come to fruition uh people we see come comes into but I understand that you know uh I let's be realistic I would have liked the fume silica to have started a few months earlier but didn't didn't there's nothing I can change well everybody would that's of course right who who wouldn't at the end of the day but but when companies remember when investors look back and again

I'm not making analogy that you're Apple but it's just I want to use an obvious example everyone can relate to when investors look back on when Apple launched the iPhone for example or the um sorry what was the little music box I know me but iPod right iPod and then iPad and things like that and see how how much they've penetrated our Our Lives no one thinks back and says well it would have been great if the iPad had just been launched six months earlier right nobody nobody thinks that way so uh so as much

as we love it if everything was wrapped up right now and had been done a couple months ago I think everyone can stand and you've done a great job of explaining the process the steps What It Takes and and why and even the rationale so let me you kind of alluded to something I was gonna ask you which is look it's December 5th and I'm I got a feeling I'm probably gonna have you back because we know that you know your the first set of materials schedule start in December you've said that in the press

release and you've repeated that here so I'm assuming there's going to be a press release about that and we're going to be back but I I don't want to take for granted so I want to ask you just that comprehensive question which is here we are December 5th 2024 how how confident how happy are you with the delta in HBQ silicon that's taking place in 2024 versus where you were in 2023 and where you were in 2022 how happy are you and how happy or how confident should your shareholders be given the fact that you

now have three three legs of the company that are that are approaching seems like re realistic commercialization events uh between now and you know the short-term midterm outlook for 2025 well we've been executing a sort of a transition from you know at one point we were in Exclusive Company in the sense that we were uh sort of like selling marketing developing pyogenesis based technology so so 100% of our business uh was associated with one technology supplier okay and what I'm happy we've been able to accomplish is as as we move the the fume silica reactor

to commercialization Stage we've also been able to basically double our footprint of hpq uh unique um technology solutions that we're bringing to the market uh so if you if you look at it the silicone ano battery materials is is hpq nasum which is sort of hpq the hydrogen one is nasum with hpq involved into it but those are truly independent from it is so we've sort of drisk ourselves from being from being 100% dependent on pyogenesis uh growth or strategy and where they're going and that was that that was part of the game plan to

do but that doesn't happen overnight like when we entered the silic the siox material for batteries um we had a general idea that we could do something good but now we've done it uh you know we we've we've announced something pretty mind numbing 500 cycle uh and this has approached large graphite companies that want to come into it because they're starting to to cue in to the fact that hey we're not a competitor okay we're not competing to replace their material in battery space we're just going to make it better we're just making it better

okay and that's a shift that's happening uh that's also a shift for battery manufacturers with at the at the beginning had a preconceived idea that you can get an siox based material above 5% in a battery and because after the 150 cycle the material died we got to 500 cycles and on our way moving forward so we got this and the hydrogen technology we're dealing with the biggest um constraint of of using hydrogen everywhere in the world like there's even one person that keeps liking to bring every you know negative issue with hydrogen solution but

and it's all centered around the same thing you manufacture at one point you have to use it at second point and the transportation cost kills you so everybody talks about storage yeah everybody talks about the cost of manufact facturing hydrogen how we got this great electrolyzer that can do it much cheaper okay the end user doesn't give a royal about it he wants to know what's going to be the cost of the hydrogen delivered to me yeah George C hydrogen can produce hydrogen really cheaply that doesn't solve the problem that I've not been able to

solve Transportation Logistics storage danger and all those issues so by the time it gets to Bernard Inc it's a totally different my my cost Advantage at production that I'm trying to sing the praise about aren't really all that uh relevant if if I can't solve those intermediary issues whereas what you're saying is you've completely wiped out those or almost wiped out those intermediate issues which makes you a paradigm shift in h well it makes it makes us a paradigm shift it gives us all new market I'm going to tell you how much the interest is

you know we issued that press release and I think you know 12 hours later I was invited to make a a conference that a pretty pretty prestigious event for um Quebec based uh hydrogen companies there's a lot of them and I've been asked to make a 10-minute presentation about the uh the metagen so you remember we were not in that hydrogen uh club before suddenly we are uh I I think that's not yet you know fully reflect fully priced in into the market uh same thing for for silicone material for batteries I think the there's

an overemphasis on the fume silica and under emphasis of the other which is great because that means that as the other projects moves along it's can only go can can only get better for the company and and drisking from pyogenesis or a single technology partner provider is nothing against pyrogenesis or anything like that but if you don't want to be wholly reliant on McDonald's if they're your customer because if they change their mind if a new CEO comes in something happens you are you know you're beholden and you your entire business could come down on

you so I like the fact you're saying listen we have we we have a very good relationship with pyro pyro without pyro we wouldn't be here but the the fact is I have to be consistent to realize that parro is also developing a multiple stool type of situation um and it's it's fine with me with the fume silica we have something great working together which we we're going to be developing it uh they have other interests we also have some hydrogen technology that we're developing that can be uh complimentary to what they're doing that's nothing

what we've announced but something else we're working on so there's always going to be Synergy on those two things but as a company I think it is wiser to instead of having one technology supplier that represents so that presents 100% risk okay we now have at least three projects so that becomes a third so the risk has been cut by two3 and I don't think people have reflected and understand and understand that they they I think they overly emphasize the pyogenesis because they overly focus on the fume silica reactor but they're not realizing you know

the the the the other technology which is fine it's the question of communications my work to come out and talk about it more and we have events that are upcoming that are going to start made that more clear by the way you're not unique to that there are major corporations out there you know Fortune 1,000 maybe not Fortune 500 but Fortune 1000 fort Fortune 2000 companies that have your kind of scenario you know and they don't receive full value so what do they do they spin them off for exactly that reason right they actually spin

off Division so they because they're big enough so well we'll get that discussion another time but I can see that happening if F actually Sil silica pois is designed for that is physically it was structured like that from the beginning hpq silica Pro prois is a standalone company okay we in our financial statement we basically you know combin them but a standalone company so it wouldn't be a big issue for us so it's so you know it's it's very easy to to to to envisage a scenario where a third party interested in developing the technology

will come and make an investment that that will value that company probably substantially higher than the the value of the entire hpq company is because that's the way it is when there when stand and then there's a pathway to to to get to get that moving forward well I gotta admit if I was one of these companies that's not the fume silica side if I was on one of the other and I want and I want to make an investment I would probably say hey uh good on you for your silica and one of the

other two legs but I'm only interested in the Silicon anal Tech or I'm only interested in the hydrogen Tech so I don't want to make an investment into your basket of everything I don't know those businesses so if we make an investment let's spin this out I want this to be independent of those I think you're probably gonna have to come to that situation at some point but anyway we'll have that discuss but we we structure ourself with that situation yeah so conclusion how happy are you in a scale of one to 10 and I

know you've you're always low key which is great so you're not a big pom pom cheerleader but it it just seems like throughout the year and I think people can see read the body language hear your voice that just seems like you're a lot more confident calmer uh secure about about everything you're doing about the about the St St of hpq but you tell us that's just I don't want to put words your mouth how how how do you on a scale 110 how do you feel about what hpq has advanced to here in December

5th 2024 with regard to advancement I would say like eight or nine regard to advancement but where the company is right now I would say more of a five because I I I really feel that the glass is at full regard to uh people realization of what we've accomplished during the year uh I think you know some people put an overly negative emphasis on on a few things without looking at the big picture and the big picture is hpq now uh is a much stronger corporation that it ever was okay when we had a value

when we when we traded at much significantly prices and we were fully dependent on one technology that had to work and that one did not work so and it it didn't work for for no big reason it's called R&D there's billions of millions of dollars being done for people TR trying to do nanop particles for silicone and in the last what in the last 3 weeks I've gotten approach by uh uh Merchant Banker that have been given mandate to to to basically uh see if they can sell their the those companies that were in that

field of nanomaterials seriously I got two of them that approached me so what does that tell you that tells you that our decision to not focus on the nanom material and work to the siox was the right one so that's why I'm I'm like I feel very confident where we're moving forward we're we're on the right track so it's all like it's a it's a mixed reaction as an operating company where we are where we're going what I'm seeing fully excited as the other arm as an investor in hpq I'm a bit unsatisfied and I'm

going to try to figure ways to to get that moving forward well that part is out of your hands what all you can do is deliver yeah one two Andor three operating divisions then the Market's going to take care of itself at some point unfortunately you don't have a m none of us none of us have the magic wand otherwise we'd be perpetually had but congratulations Bernard it sounds like when you say it's an eight or nine out of 10 um and I've got to agree I've got to agree now it's just a case of

uh closing out a couple things the the you're outside the waiting room your you're pacing with Uncle ionic on the first baby so uh I think a lot of us can see uh can see the reveal coming so I'm probably gonna have you back all right so I'm not gonna say h goodbye for the year but I I'm just waiting for that phone call to come and say George press release is coming I need I need you tomorrow or whatever the case is so thanks for today nice update great update uh as always Bernard and

for everyone at home thanks for joining us have a great day see you next time hey small cap fam I hope you love this interview because more than a dozen people were involved in its production for the sole purpose of making you happy if so can you take a moment to support both our awesome guest company and aora C your engagement means the world to us first if you enjoyed this video give us a thumbs up by tapping that like button it's a small gesture that helps this interview reach even more potential investors to discover

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