Shares of Two Micro Cap Companies Soar Amid Potential Fumed Silica JV

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Thursday, February 12, 2026

On an otherwise risk-off trading day, there were a few bright spots in the micro-cap space. Notably, the announcement of a memorandum of understanding between two micro-cap companies drove shares of both significantly higher during the session.

PyroGenesis Inc. (TSX: PYR) (OTCQX: PYRGF) announced that its client HPQ Silicon Inc. (TSX-Venture: HPQ) (OTCQB: HPQFF) through subsidiary HPQ Silica Polvere Inc. (“HSPI”), has signed a non-binding memorandum of understanding with an undisclosed industrial partner to potentially form a joint venture aimed at operating a 1,000-tonne-per-year commercial fumed silica production facility. Under an exclusive manufacturing agreement, PyroGenesis would construct the fumed silica reactor for approximately US$20 million, with financing expected to be provided by the joint venture partner. The company has also been closely involved in negotiations and is nearing completion of its previously announced plan to acquire a 50% stake in HSPI.

The proposed joint venture would own and operate the system, selling fumed silica at prevailing market prices while incorporating a royalty structure payable to HSPI on product sales and a profit-sharing arrangement among partners. An implied off-take agreement is also expected to support the project’s commercial rationale. 

The commercial facility would scale up PyroGenesis’ existing pilot reactor technology, which converts quartz into fumed silica through a single environmentally friendly process that avoids chemical inputs and hazardous by-products. The next phase hinges on ongoing testing of product samples to confirm required material characteristics. If the venture moves forward, the company anticipates delivering the plant within roughly 12 months after formation, with potential demand for additional reactors of similar or larger capacity in the future.

“On-site production using our FSR plant would represent a significant development for manufacturers that rely on fumed silica,” said Mr. P. Peter Pascali, President and CEO of PyroGenesis. “Localized production at, or near, the point of use fundamentally restructures the supply chain, streamlines logistics, and secures reliable access to material that is critical to manufacturing operations. This is a quickly emerging consideration within global supply chains. This MOU is an important first step, but it must be noted that only upon successful completion of negotiations and the signing of definitive agreements by all parties will the joint venture and the production plant project(s) proceed. Negotiations with respect to these definitive agreements are ongoing, and should be completed before the end of Q2 2026.”

Shares of PYR are currently up 32% at $0.33, while its U.S. listing (PYRGF) is trading 30.77% higher at $0.2478. Meanwhile, HPQ shares have risen 12.2% to $0.23, with its U.S. listing (HPQFF) up 8.38% at $0.1582 in late-morning trading.

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