CDTi Exits Downstream Distribution Activities through Sale of DuraFit™ Product Line
September 11 2017 - 08:00AM
Transaction represents final step in enabling
transition to technology provider business modelTo hold conference
call and address company outlook on September 14th at 2:00 p.m.
PT
Clean Diesel Technologies, Inc. (Nasdaq:CDTI) (“CDTi” or “the
Company”), a leader in advanced emission control technology, has
sold its DuraFit™ and private label OEM replacement diesel
particulate filter ("DPF") and diesel oxidation catalysts ("DOC")
product line to AP Exhaust Technologies (“AP Exhaust”) for $3.2
million. In parallel with the sale, CDTi and AP Exhaust have
entered a supply agreement whereby CDTi will provide coating and
materials for AP Exhaust’s DPF and DOC product lines.
Matthew Beale, CDTi’s CEO, stated, “Through the strategic sale
of our downstream business, we have completed the final step in
facilitating the transformation of the company into a provider of
enabling technology to the emissions catalyst market by the end of
the year. Our advanced materials and specialty coating business
model streamlines our infrastructure, supports higher margins and
improves profitability. While we will begin with less revenue than
under our previous model, we expect to drive growth in our new
powder-to-coat business in 2018 and into 2019 by providing
technology to our manufacturing partners in the U.S., China, India,
Europe and OEMs around the world. We believe our technology
provider model is highly scalable, allowing us to contend for the
more than 90 million vehicle market globally.
“For the last several quarters, CDTi has been focused on the
strategic repositioning of the business to provide our technology
to other manufacturers, which dramatically increases the size of
our addressable market. These activities result in a leaner, more
focused organization with a strengthened balance sheet, and we are
now positioned to convert our progress into long-term profitable
growth.”
Terms of the SaleThe agreement includes all
tangible and intangible assets, including brands, intellectual
property, equipment, customer agreements, private label programs
and inventory. Additional details on the terms of the sale can be
accessed via the company’s Form 8-K filed today with the Securities
and Exchange Commission at www.sec.gov or on the company’s website
at www.cdti.com.
Investor Conference Call and Webcast
InformationCDTi will host a conference call and slide
presentation beginning at 2:00 p.m. PT on September 14th to discuss
this transaction and the company’s strategic and financial outlook.
To participate in the call, please dial +1-800-211-3767 and
international participants should dial +1 719-457-2602. The
conference code is 9539780. The conference call will also be
webcast live and via replay for 90 days on the CDTi website at
www.cdti.com. You may also access a telephone replay for two
business days following the conclusion of the call by dialing +1
844-512-2921 or +1 412-317-6671 if dialing in internationally. The
passcode is 9539780.
About CDTiCDTi develops advanced materials
technology for the emissions control market. CDTi’s proprietary
technologies provide high-value sustainable solutions to reduce
hazardous emissions, increase energy efficiency and lower the
carbon intensity of on- and off-road combustion engine systems.
With a continuing focus on innovation-driven commercialization and
global expansion, CDTi’s breakthrough Powder-to-Coat (P2C™)
technology exploits the Company’s high-performance, advanced
low-platinum group metal (PGM) emission reduction catalysts. Key
technology platforms include Mixed Phase Catalyst (MPC®), Base
Metal Activated Rhodium Support (BMARS™), Synergized PGM (SPGM™),
Zero PGM (ZPGM™) and Spinel™. For more information, please visit
www.cdti.com.
Forward-Looking StatementsCertain information
contained in this press release constitutes forward-looking
statements, including any statements that are not statements of
historical fact. You can identify these forward-looking statements
by the use of the words “believes”, “expects”, “anticipates”,
“plans”, “may”, “will”, “would”, “intends”, “estimates”, and other
similar expressions, whether in the negative or affirmative.
Forward-looking statements are based on a series of expectations,
assumptions, estimates and projections, which involve substantial
uncertainty and risk. In this document, the Company includes
forward-looking statements regarding the acceleration of the
Company’s business transformation into an advanced materials
company, global trends in the automotive and heavy duty diesel
markets, the Company’s future financial performance, and the
performance of the Company’s technology, are all subject to risks
and uncertainties that could cause our actual results and financial
position to differ materially. In general, actual results may
differ materially from those indicated by such forward-looking
statements as a result of risks and uncertainties, including, but
not limited, to (i) that the Company may not be able to (a)
successfully implement, or implement at all, its strategic
priorities; (b) streamline its operations or align its organization
and infrastructure with the anticipated business; (c) meet
expectations or projections; (d) decrease costs; (e) increase
sales; (f) obtain adequate funding; (g) retain or secure customers;
(h) increase its customer base; (i) protect its intellectual
property; (j) successfully evolve into an advanced materials
supplier or, even if successful, increase profitability; (k)
successfully market new products; (l) obtain product
verifications or approvals; (m) attract or retain key personnel;
(n) validate, optimize and scale our powder-to-coat capability; or
(o) realize benefits from investments; (ii) funding for and
enforcement and tightening of emissions controls, standards and
regulations; (iii) prices of PGM and rare earth metals; (iv)
royalty and other restrictions on sales in certain Asian countries;
(v) supply disruptions or failures; (vi) regulatory, marketing and
competitive factors; (vii) environmental harm or damages; and
(viii) other risks and uncertainties discussed or referenced in the
Company’s filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and any
subsequent periodic reports on Form 10-Q and Form 8-K. In addition,
any forward-looking statements represent the Company’s estimates
only as of the date of such statements and should not be relied
upon as representing the Company’s estimates as of any subsequent
date. The Company specifically disclaims any obligation to update
forward-looking statements. All forward-looking statements in this
press release are qualified in their entirety by this cautionary
statement.
Contact Information: Becky
Herrick or Cathy MattisonLHA (IR Agency)+1 415 433
3777bherrick@lhai.com / cmattison@lhai.com
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