Scandium Canada announced the closing of its acquisition of Ferreol Technologies, a Québec-based company focused on research, development, processing, and production of aluminum products and other alloys incorporating scandium.
Following the closing, Ferreol Technologies has been renamed Scalium+ and is now a wholly owned subsidiary of Scandium Canada.
Scalium+ will focus on the commercialization of aluminum-scandium alloys developed by both organizations, including proprietary alloys from Scandium Canada’s Scandium+ division and Ferreol Technologies’ Scalium product line.
The acquisition brings Scandium Canada an established Québec City commercial team, active alloy clients, and a production workflow designed to accelerate and reduce the risk of commercializing specialized alloys for advanced manufacturing.
Scandium Canada said the deal strengthens its two-engine model: developing Crater Lake as a potential upstream primary scandium source while building a downstream scandium-based alloys business.
Ferreol Technologies has already brought one Scalium alloy to market and has established working relationships with end users across multiple sectors.
The company also has patents pending related to the production of specialty aluminum-scandium alloys and developed surface treatments.
Based on Ferreol Technologies’ internal testing under controlled conditions, some Scalium alloys demonstrated strength results of up to 45% higher than typical 7075 aerospace aluminum.
Subject to further commercial and scale testing, Scandium Canada said certain Scalium alloys may have the potential to substitute for high-strength aluminum alloys or titanium in demanding high-stress applications.
Scandium Canada said the acquisition adds a team that has already moved aluminum-scandium alloys from the laboratory to paying customers, which could accelerate the company’s downstream strategy before its Crater Lake project enters production.
Under the terms of the agreement, Scandium Canada purchased all issued and outstanding shares of Ferreol Technologies.
The company’s aggregate obligations for the transaction are estimated at approximately $6.6 million, subject to closing adjustments and an earn-out.
The consideration includes a $2 million cash payment, the issuance of 22,000,009 common shares of Scandium Canada with an aggregate deemed value of about $4.07 million, and the assumption of certain Ferreol Technologies obligations and liabilities estimated at about $538,131.
The vendors may also be entitled to a contingent cash earn-out equal to 1.5 times the revenues generated collectively by Ferreol Technologies and Scandium Canada’s Scandium+ division over a two-year reference period beginning June 29, 2026, up to a maximum of $2.45 million.
The consideration shares are subject to resale restrictions under securities laws and contractual release schedules.
Félix Lapointe, co-founder of Ferreol Technologies, has been appointed CEO of Scalium+. Scandium Canada’s board also approved the grant of 3 million incentive stock options to Lapointe, subject to approval from the TSX Venture Exchange.
Scandium Canada said no finder’s fees were paid in connection with the transaction, and the vendors agreed to non-competition and non-solicitation covenants for three years from closing.
Scandium Canada is focused on bringing what it describes as North America’s only primary source of scandium into production while enabling the development and commercialization of aluminum-scandium alloys.
KEY QUOTES:
“This acquisition compresses our timeline to revenue on the alloys side of our business. We are bringing in a team that has already commercialized Al-Sc alloys, with infrastructure in place and customers in hand. Combined with our alloys development work and the Crater Lake project, Scalium+ gives us a complete chain, from primary scandium source to alloys in the market.”
Guy Bourassa, CEO of Scandium Canada
“I am very enthusiastic about working with a team with commercial experience and energy to a shared vision of scandium commercialization. Above all, this team gives us the ability to take our research, expertise and vision into products, into markets and into the hands of end users.”
Luc Duchesne, Ph.D., Chief Science Officer of Scalium+
“Joining Scandium Canada gives us the financial and corporate capacity to accelerate the development and commercialization of our technologies and opens truly exciting opportunities for the future of the business. Scandium Canada’s experience and intellectual property portfolio are very complementary to ours and allows us to get into new applications and markets. By joining forces, we can see further and get there much faster. We are thrilled and honoured!”
Félix Lapointe, CEO of Scalium+
“This is an important strategic milestone for Scandium Canada. The Company’s strategy has always been to advance on more than one front: developing Crater Lake as a potential primary source of scandium while building the downstream alloy capabilities required to support market adoption. The acquisition of Ferreol Technologies and the launch of Scalium+ accelerates this strategy. The Board has supported this integrated vision from the beginning, and we believe this transaction strengthens the Company’s platform, broadens its commercial capabilities and supports our objective of creating long-term shareholder value across the scandium supply chain.”
Jeff Swinoga, Chairman of the Board of Scandium Canada
