TSXV: HEO
Alternext: MNEMO: ALHEO
OTCQX: HEOFF
QUEBEC CITY, Sept. 24, 2015 /CNW Telbec/ - (TSXV: HEO) –
H2O Innovation Inc.
("H2O Innovation" or the "Corporation"), a leader
in membrane filtration, is proud to announce the signature of an
agreement with Clearlogx, Inc. ("Clearlogx") to purchase all of the
assets of Clearlogx pertaining to its unique Clearlogx® control
technology and its specialty coagulants.
The Clearlogx® technology is a proprietary technology developed
by Mr. Gregg McLeod, director and
shareholder of Clearlogx, which precisely and continuously controls
the feed of specialty coagulants used in water treatment to
maintain a proper pH level and an optimum particle charge, while
simultaneously improving overall treatment process
efficiency. This technology is especially critical for
ultrafiltration (UF) water treatment plants to minimize membrane
fouling, and thus, highly complementary to H2O
Innovation's project business.
In addition to the Clearlogx® technology, H2O
Innovation will purchase Clearlogx's business related to the sale
of coagulants for conventional and membrane filtration systems.
This line of specialty coagulants is complementary to the
Corporation's specialty chemicals marketed under the name
PWTTM and will significantly increase the level of
recurrent sales.
The Clearlogx® control technology will be added to the
Corporation's systems group offering while the specialty coagulants
business will join PWTTM speciality chemicals group,
making both of them stronger and more profitable.
"This acquisition fits perfectly with H2O
Innovation's vision to complement its offering to its customers and
to create synergies between its different business lines.
Moreover, this transaction will be accretive from day one to our
earning with current sales of approximately US$1.2 million per year and an EBITDA level
reaching 15% to 25% of Clearlogx's revenues. This new
business unit will undoubtedly contribute to the growth and
profitability of H2O Innovation by complementing its
offering, generating more recurrent sales and bringing
differentiation", explained Frédéric Dugré, President and Chief
Executive Officer of H2O Innovation.
Entirely financed by a secured long-term debt of
US$2 million with a Canadian chartered bank, the transaction
will not require equity financing, thus avoiding dilution of
H2O Innovation's shareholders ownership. The
disbursement of the loan is subject to the execution of proper
documentation related to collateral.
Subject to the execution of the documents pertaining to
financing and collateral, H2O Innovation expects to
execute a definitive asset purchase agreement and to complete this
acquisition at the beginning of October
2015.
Prospective disclosures
Certain statements set forth
in this press release regarding the operations and the activities
of H2O Innovation may constitute forward-looking
statements within the meaning of securities legislation.
Forward-looking statements concern analysis and other information
based on forecast future results, performance and achievements and
the estimate of amounts that cannot yet be determined. Those
forward-looking statements, based on the current expectations of
management, involve a number of risks and uncertainties, known and
unknown, which may result in actual and future results, performance
and achievements of the Corporation to be materially different than
the said forward-looking statements. Information about the risk
factors to which the Corporation is exposed is provided in the
Annual Information Form dated September 22,
2015 available on SEDAR (www.sedar.com).
About H2O Innovation
H2O Innovation designs and provides state-of-the-art,
custom-built, and integrated water treatment solutions based on
membrane filtration technology for municipal, energy and natural
resources end-users. Also, directly and through its affiliates,
H2O Innovation provides services and products
complementary to its membrane filtration and reverse osmosis
systems. These products consist of a complete line of specialty
chemicals, consumables and couplings. For more information, visit
www.h2oinnovation.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) nor the Alternext Exchange accepts responsibility
for the adequacy or accuracy of this release.
Source :
H2O Innovation Inc.
www.h2oinnovation.com
SOURCE H2O Innovation Inc.