TSXV: HEO
Alternext: MNEMO: ALHEO
OTCQX:
HEOFF
All amounts in Canadian dollars unless otherwise
stated.
QUEBEC CITY, Oct. 28, 2015 /CNW Telbec/ - (TSXV: HEO) –
H2O Innovation Inc.
("H2O Innovation" or the "Corporation"), a leader
in membrane filtration, is proud to announce the execution of a
definitive asset purchase agreement completing the acquisition of
Clearlogx®, a patented technology, developed by Gregg McLeod, that helps maintain and optimize
chemical performance, while improving the overall efficiency, of
water treatment processes. This technology is especially critical
for ultrafiltration (UF) water treatment plants to minimize
membrane fouling's, extend membranes' lifecycle, and thus, reduce
overall plant operating expenses.
This proprietary technology with sustained recurring revenues is
a low risk tuck-in acquisition which provides immediate accretion
to EBITDA performance. Moreover, the addition of Clearlogx® to
H2O Innovation is expected to improve consolidated
gross profit margin.
In addition to Clearlogx® technology, H2O Innovation
has acquired the Clearlogx Inc.'s business related to the sale of
coagulants, which further complement the Corporation's specialty
chemicals marketed under the name PWTTM.
This acquisition was made for a total of $ 1.97 million (US$1.5
million), with potential earn-out payments over a period of
three (3) years following the effective date of the transaction. To
avoid dilution of H2O Innovation shareholder ownership,
H2O Innovation has entirely financed this acquisition
with a long-term loan of $ 2.63
million (US$2 million)
borrowed from BMO Bank and secured at 75% by EDC, allowing the
Company to reduce its interest rate.
The acquisition of Clearlogx® continue to increase the level of
H2O Innovation recurring sales, while further
strengthening the business sector dedicated to water treatment
systems.
"I am excited to be joining H2O Innovation who, with
their experience and presence in the water sector, will expand on
the early successes of Clearlogx®. Our patented technology has
already improved UF membrane filters performance on numerous
installations in North America
such as the Carter Lake Potable Water Plant, a 30 MGD UF system
which was facing de-rated production capacity, inefficient chemical
cleanings, shortened membrane life and regulatory compliance
issues. After the integration of Clearlogx® controls into the
process, the customer saw a dramatic reduction in membrane fouling
enabling to increase production up to design capacity while
reducing chemical & power consumption. H2O
Innovation is the perfect partner to expand Clearlogx® controls
technology and the associated specialty coagulants into additional
market segments such as industrial and municipal wastewater reuse",
explained Gregg
McLeod, Vice President, Clearlogx®
Technology.
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 Clearlogx®
The Clearlogx® technology is a
proprietary technology 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. For
more information, visit www.clearlogx.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.
www.h2oinnovation.com
SOURCE H2O Innovation Inc.