Current Water Technologies Inc. (WATR.V) coverage was initiated a year ago with a more recent note in June 2018. WATR.V uses an electro-chemical process to purify water, primarily through a) An electrostatic discharge (ESD) and b) AmmEL which converts ammonia into nitrogen.
Here's an update for the last six months:
June 8 - China Trade Mission Update: expect to return to Hebei Province in late July to execute formal agreements.
June 13 - Dispel rumors for financing and related mergers. Rejection of an investment or eventual take over rumor.
June 28 - Xogen letter - Merger and Financing.
Aug. 31 - Initiates Ammonia Destruction Validation Program for Ontario-Based Gold Mining Operations. Previous demo in the Abitibi region of Quebec and Western Canada, This time another mining company in Northern Ontario mini-pilot testing its AmmEL ammonia destruction technology.
Furthermore, in Q4 WATR also anticipates another client.
Sept. 11 - Nominees for Board of Directors Reject Dissident Shareholders. Messrs. Kammourie and Dingsdale did not consent to be included as part of the nominees proposed by a group of concerned shareholders for election at the Annual General Meeting on September 14, 2018.
Morever, both Kammourie and Dingsdale are supportive of the CWTI nominees and will vote the common shares directly or indirectly held or controlled by them in favour of CWTI’s nominees.
Sept. 18 - CWTI Management Receives Overwhelming Shareholder Support. Record high percentage of common shares was represented at the Meeting: 70.58% of its issued and outstanding shares were voted with 58.8% of these votes supporting management. BDO Canada LLP as auditors.
Oct. 24 - Appointment of Interim Chief Financial Officer; Appointment of Senior Advisor. Mr. Edward Tsang is appointed as Chief Financial Officer of the Company, on an interim basis, to assume the responsibilities of day-to-day financial operations of the company.
The company is pleased to inform its shareholders that Mr. Bertan Atalay will assume the responsibilities of Senior Advisor to the board and lead the corporate and project finance origination activities of the company with special focus on business development. Associated with his appointment, Mr. Atalay will also step down from his board membership to focus on the business activities of the company, which are targeted to grow.
Oct. 30 - Private Placement for up to $500,000 at 0.07 cents. Warrant at $0.12 cents. The proceeds of this offering will be used for marketing and manufacturing initiatives, and for general working capital.
Nov. 13 - Engaged by Major Mining Company To Assess Water Treatment Options. Consulting contract to participate in the evaluation of water treatment options for the treatment of ammonia at a Canadian gold mining operation owned by a major North American mining company.
CWTI anticipates completing the Scope of Work by year-end.
Nov. 14 - Retains Paradox for Investor Relations Paradox will assist the Company by increasing market awareness for the company utilizing a number of financial market communications initiatives. Under the terms of the engagement, Paradox will be retained for a 24 month period at $6,500 per month.
Paradox granted 0.8M incentive stock options to acquire common shares at an exercise price of $0.10 cents. The options will be vested at six month intervals over a period of eighteen months with an exercise termination date of two years from the date of grant.
Nov. 29 - Completes First Tranche - $212,050 of the proposed $500,000. Continuing to raise capital at a price of $0.07 per unit - Warrant at $0.12 cents.
As depicted on our last note and in the chart above, the downward trend of the stock price continued this period. It is now evident that after an unsuccessful merger proposal, an attempt was made to take over the company's helm with the issuance of a questionable yellow proxy.
As referred to in the Sept 11 release: Messrs. Kammourie and Dingsdale did not consent to be included as part of the nominees proposed by a group of concerned shareholders for election at the Annual General Meeting on September 14, 2018.
The confusion probably influenced the outcome but in the end the current management still prevailed with 58% of the vote. However, valuation was certainly impacted in the process - WATR.V went from $0.22 in March 2018 to $0.06 cents today.
Despite the issued encountered, WATR.V has developed leads with mining companies in Quebec, Ontario, and Western Canada. With financing announced prior a consulting contract, it appears that the company is making progress on that front. Insiders also have been busy buying.
However, updates on the KSA project which were discussed earlier in the year have not been provided to the market. Moreover, uncertainty around the proponents of the yellow proxy are real as one of the "concerned shareholder" previously appeared on the Midas Letter earlier in the year.
With a 50% completion on a financing offer at $0.07 cents (warrant at $0.12 cents), WATR.V is pretty much de-risked after a failed proxy.
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