GUELPH, ON–(Marketwired – January 09, 2018) – Current Water Technologies Inc. (TSX VENTURE: WATR) (“CWTI” or “the Company”) is pleased to announce that it has closed the acquisition of Pumptronics Incorporated (“Vendor”) by acquiring 100% of the issued share capital.
As agreed, the Company delivered to the Vendor the following:
(i) A payment of $700,000 in cash on Closing, payable by wire transfer of immediately available funds to counsel for the Vendor (i.e., the “Minimum Cash Payable at Closing“);
(ii) $100,000 by credit of the deposit amount previously paid by the Company to the Vendor;
(iii) A payment of $400,000 by issuance of a promissory note to the Vendor; and,
(iv) 12,000,000 common shares of the Company (at a purchase price of $0.15 per common share).
To facilitate the acquisition, the Company has also closed an initial private placement of $1,325,000 for 8,833,333 Units at a price of $0.15 per unit. Each Unit is comprised of one Common Share in the capital stock of the Corporation and a one-half share Purchase Warrant (“Warrant”), which is exercisable for a period of two (2) years from the date of closing. Two Purchase Warrants entitle the holder to purchase one additional Common Share at an exercise price of $0.25 per share.
The Company expects to close the second tranche of its non-brokered private placement of 33,333,333 units at a price of $0.15 per unit for gross proceeds of $5,000,000 by the end of January.
“Current Water Technologies Inc. is extremely pleased to announce the acquisition of Pumptronics, which couples a strong baseline revenue stream with a robust sales pipeline that has significant growth potential in the near term, and blue-sky technology sales with a commensurate appreciation of shareholder value. By combining two complementary businesses, we have increased our depth and breadth of technical services and manufacturing capabilities,” said Dr. Gene Shelp, President & CEO.
About Current Water Technologies Inc.
Current Water Technologies is a “Technology Company” applying its patented and proprietary “Electrochemical Technologies” to the treatment of waste water, desalination water and drinking water contaminated by metals or nutrients, i.e., nitrate/ammonia associated with the mining, metal processing, chemical, agricultural, municipal and waste management sectors. Pumptronics Incorporated will operate as a division of the Company and continue to function asan integrated pump station manufacturer specializing in custom design and automation.
The common shares trade on Tier ll of the TSX Venture Exchange under the symbol “WATR”.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Current Water Technologies Inc. results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof. Certain statements contained in this press release and in certain documents incorporated by reference into this press release constitute forward-looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and “confident” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Current Water believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Current Water undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Dr. Gene S. Shelp, Ph.D., P.Geo.
President and CEO