WATR.V - Directional.

Current Water Technologies Inc. (WATR.V) applies patented and proprietary “Electrochemical Technologies” to the treatment of waste water, desalination water and drinking water contaminated by metals or nutrients. WATR.V also operates Pumptronics Incorporated, a pump station manufacturer specializing in custom design and automation.


Coverage issued February 2017 March 2018, June 2018, December 2018 , July 2019, April 2020 and December 2020.


News Releases


Feb. 2 - Provides Corporate Progress Update: Company’s Pumptronics Division has experienced and continues to experience robust commercial sales. Pumptronics specializes in the design and fabrication of high quality irrigation pump stations and control systems. Its state-of-the-art automated pumping stations can be found in the the agriculture, golf, storm water/flood water and rain-water harvesting sectors.


The current fabrication pipeline for pump stations includes sales exceeding $1.2M. Based on the number of new proposals already submitted this year, the company anticipates an accelerating sales program in 2021. Accordingly, CWTI has added three new staff to its sales team to target specific commercial, agricultural and municipal sectors.


Concurrently, CWTI is aggressively pursuing the commercial success of its patented AmmEL and ESD water treatment systems. In 2020, the Company conducted testing programs for several domestic and international clients, and expects commercial contracts to be forthcoming in 2021.


In 2020 the Company developed new market opportunities for Pumptronics products and advanced the possibility of commercial contracts for its innovative water treatment systems in diverse sectors. I believe that we have set a solid foundation for growth.” - Dr. Gene Shelp, Current Water’s CEO.


Feb. 16 - Private Placement for up to $1,000,000: Up to 20M Units at a price of $0.05 per unit (Warrant $0.07 cents).


Feb. 24 - Revised amount – CWTI Private Placement for up to $1,250,000: The Private Placement will be for up to 25M Units at a price of $0.05 per unit (Warrant $0.07 cents).


Feb. 26 - Revised amount – CWTI Private Placement for up to $1,600,000: The Private Placement will be for up to 32M Units at a price of $0.05 per unit (Warrant $0.07 cents).


Mar. 5 - Completes First Tranche - $1,241,000: Completed the first tranche of the Private Placement announced February 16, 24 & 26, 2021. The Company has raised a total of $1,241,000 of the proposed $1,600,000.


Mar. 10 - Closes Second And Final Tranche of Private Placement - $1,600,000: Closed the second and final tranche for $359,000. The Private Placement announced February 16, 24 & 26, 2021 closed with a total proceeds of $1,600,000.


The proceeds of this offering will be used for marketing and manufacturing initiatives, and for general working capital. The private placement is subject to regulatory approval by the TSX Venture Exchange.


Apr. 14 - Provides Corporate Progress Update: Current Water has an increasing sales pipeline. During the first quarter, the Company received a record of 47 requests for quotations for sales of pumping stations, of various designs and capacities, and for municipal and industrial water treatment systems.


Also, during the first quarter of 2021, WATR.V completed the fabrication of the following two custom-automated pumping systems. Fabrication of a third major pumping station is scheduled to be completed and shipped by May.


In early March, an Agriculture Irrigation Pumping Station was loaded onto two 53-foot trailers to Manitoba. Also in March, a Municipal Storm Water Irrigation Pumping Station was loaded onto a 53-foot trailer for transport to Alberta


In response to our recent sales and marketing activities, CWTI has already received orders for new pumping stations totaling $170,000. Based on the level of interest, the Company anticipates robust sales of its proprietary custom-automated pumping stations in 2021.


We are excited about the accelerating sales growth potential for our pumping division. Furthermore, despite the challenges with COVID, we are optimistic that our continuing discussions with interested parties will result in near term sales of our patented water treatment systems." - Dr. Gene Shelp, Current Water’s CEO.


Apr. 29 Annual Earnings* (no press release)


May 4 - Appoints Mr. Amin Samra, B.Sc Ag., D. Eng. SIM, Senior Sales Manager – Western Canada: He will be responsible for developing and implementing sales strategies, identifying new market opportunities, and defining short and long-term strategic growth plans. Based in Calgary, AB, Amin will immediately be responsible for sales of Pumptronics’ custom automated pumping stations in Western Canada. In time, CWTI’s water treatment systems.


May 28 - Q1 2021 Earnings* (no press release)


Summary


Financing

WATR.V required another round of financing this year. In FY 2020, it raised for $0.5M (25M shares at $0.02 cents; Warrant at $0.05 cents). This year, it raised $1.6M (32M shares at $0.05 cents; Warrant $0.07 cents).


The proceeds of this offering will be used for marketing and manufacturing initiatives, and for general working capital.


Q1 2021 MD&A: March 24 and 29, 2021 warrants were exercised in the respective amounts of $124,000 and $50,000.


Insiders

Insider activity for the period has been timely. Of late, much of the activity occurred in relation to a strong movement in stock prices. Both Mr. Kammourie and Mr. Kaszuba have been net sellers. Mr. Kammourie's activity is notable.


Source: CEO.ca


Earnings

As expected, FY2020 was not a good year for WATR.V's. Revenues were down by 42% from FY 2019. Much of the decline in net earnings occurred in Q4 2020. While revenue bounced back in Q1 2021, there are still below Q1 2019 levels.

Furthermore, net earnings (losses) continue to increase in Q1 2021 being almost back to Q1 2018 levels.


In Short

WATR.V is trading at a much higher price since its all time historical low ($0.015 cent). However, valuation is flat of late. Nonetheless, the company did provide two updates in the period.


February 2021

The current fabrication pipeline for pump stations includes sales exceeding $1.2M. Based on the number of new proposals already submitted this year, the company anticipates an accelerating sales program in 2021. Accordingly, CWTI has added three new staff to its sales team to target specific commercial, agricultural and municipal sectors.


April 2021.

WATR.V reported receiving 47 requests for quotations for pumping stations. It also reported the completion of fabrication of two custom-automated pumping systems. It also claimed another to be completed and shipped by May.


The last new release was in early May (three months ago) concerning a hiring. No confirmation have been given regarding the third custom-automated pumping system that was set to be completed and shipped by May 2021. In addition, the lack of update is not in the interest of the company given the number of warrants eligible to be exercised.


WATR.V also continues to report earnings without a news release and the MD&A provide little additional details. There also seems to be some contradictions. For instance, WATR.V still refers to the Chembro ESD Unit project.


Status of Chemsbro ESD unit

The Chemsbro 900K ESD unit remains to be completed due to unexpected cost overruns. The cost of the unit was US$1,212,400 plus an estimated cost of installation and commissioning of US$36,250, with an additional US$208,244 in client requested modifications, bringing the total estimated cost of the unit to US$1,465,894. To date, Chemsbro has paid $1,392,544 towards the total estimated cost of the 900K ESD system. The Company is currently pursuing financing activities to raise additional funds to complete the unit at the earliest possible opportunity.


The fact that a round of financing was recently completed without reference to it seems odd. Also, Mr. Kammorie who is currently a board member and is affiliated with Chemsbro has been a net seller during the period.


Overall, WATR.V appears to be prioritizing custom Pumptronics products sales. The reported pipeline of $1.2M in February does not guarantee that it will outperform FY 2020. Hence, Q2 earning should be directional.



DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.

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