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 began February 2017 with additional notes on June 2018, December 2018 and July 2019. Here's an update.
Aug. 29 - Q2 2019 Earnings* (no press release)
Sep. 6 - Grants Stock Options. Grant of 5.2M incentive stock options to be issued on September 6th, 2019 (previously press released June 14, 2019) with 3,0M options going to 5 Directors. The options are exercisable at a price of $0.05
Oct. 22 - CWTI's Pumptronics Division. For Period June 15 – October 18, 2019 New Equipment Sales of $253,245 and Services Income of $453,194. In 2019, CWTI has largely focused on developing water treatment opportunities in Canada and USA. As industry and municipal utilities are being subjected to more stringent waste water discharge guidelines, the Company is experiencing growing interest in the unique benefits of its patented innovative ammonia treatment solution.
Nov. 29 - Q3 2019 Earnings* (no press release)
Mar. 6 - Announces Private Placement for up to $500,000. The Private Placement will be for up to 20,000,000 Units at a price of $0.025 per unit (Warrant 0.05 cents). The proceeds will be used for current equipment sales activities and current general working capital purposes.
Mar. 11 - CWTI Private Placement for up to $500,000, Revised. Units at a price of $0.02 per unit (Warrant 0.05 cents).
Mar. 24 - Completes First Tranche - $220,000. Completed the first tranche of the Private Placement announced March 06, 2020 and updated March 11, 2020. Raised a total of $220,000 of the proposed $500,000.
Summary
Since July 4 2019, WATR.V traded between $0.05 and $0.015 cents, yesterday WATR.V closed at $0.02 cents. This represents a significant drop since repelling a yellow proxy (September 18, 2018, $0.08 cents).
Moreover. five releases were issued for the period. Only one release was related to sales activity (Oct. 22), the remainder dealt with financing and the granting of options. In addition, the last two earnings (Nov. 29, Q3 2019) and (Aug. 29, Q2 2019) reported during that time were not issued a press release.
Overall, the FY 2019 earnings reported to date shows a decline in revenue from 2018 in all respective quarters. However, in FY 2019, WATR.V managed to return better net earnings. The rationale for not sharing these widely with the market by issuing a press release is puzzling. Meanwhile, nine insider purchases at the open market were made.
On March 6th, WATR.V announced financing for $0.5M at $0.025 cents and later revised it to $0.02 cents on March 11th.
On March 24th, WATR.V reported that the first Tranche was completed ($220,000).
Looking at the filings, only three individuals participated.
The current placement is quite a departure from their last financing (Nov. 2018) at $0.07 cents (warrant at $0.12 cents) which yielded a 50% completion rate; ($0.2M out of $0.5M).
The price on this round is certainly convenient.
In the Q3 FY2019 MD&A, the following was noted.
There is no certainty that the money spent by Current Water on research and development of its electrochemical water treatment technologies will result in the acquisition of large scale commercial sales. The long-term profitability of Current Water will be related in part to the success of its marketing and business development initiatives, which may be affected by a number of factors that are beyond the control of the Company. The success of the Corporation will largely depend upon the performance of its officers, consultants and employees
Looking at the decisions of not widely disseminating the earnings in a news release coupled with the lowering of the private placement from ($0.025 to $0.02 cents) indicates a willingness to under-promote valuation.
Legal? Yes. Ethical? Hum... More importantly, is this in the best interest of all shareholders?
Otherwise, the bulk of the revenue reported in all releases in 2019 were for Pumptronics except for the Chemsbro Project which the company announced the launch of an Electro-Static Deionization (ESD) technology in Saudi Arabia later this year (2019). Thus far, no update have been provided by WATR.V on this matter.
No doubt, WATR.V continues to under-perform but the reasoning for under-promoting itself is questionable.
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