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Independent Reviews for Venture Investors

WWT.V - Makes sense.


Water Ways Technologies Inc. (WWT.V) is a global provider of agriculture technology. Through it susbsidiary it provides water irrigation solutions to agricultural producers. WWT.V competes in the irrigation water systems market with a focus on developing solutions with commercial applications in the micro and precision irrigation segments.


Water Ways Technologies' main revenue streams are derived from the following business units: (i) Projects Business Unit; and (ii) Component and Equipment Sales Unit. WWT.V is capitalizing on the opportunities presented by micro and smart irrigation, while also making a positive mark on society by increasing availability in developing markets such as Africa and Latin America, as well as developed markets (China, Canada).


Water Ways Technologies' irrigation projects include vineyards, Cotton fields, Apple and Orange orchids, Blueberries, Medical Cannabis, fresh produce cooling rooms and more, in over 15 countries.


Coverage was initiated in December 2019. with notes on August 2020 and April 2021.


News Releases


Apr.30 - Reports Year End 2020 - Financial Results


May 6 - Announces a New Order for a Cannabis Irrigation System in Israel: Received a CAD$130,000 new order for upgrading an existing Cannabis irrigation system to one of the largest Medical Cannabis licensed producers in Israel.


May 20 - Chinese Subsidiary Expands and Receives Two New Orders for Trellising and Smart Irrigation: for two projects with a value of approximately CAD$180K to be delivered in the first half of 2021.


1.Planning, supply and installation of an advanced net house, trellising and smart irrigation system of a Passion Fruit Orchard; and 2. A pilot project for an advanced net house combined with a drip irrigation system for a Cherry Orchard.


May 27 - Reports Q1 2021 Financial Results, Books a Profit and Record Q1 Sales of CAD$5,450,000


June 1 - Received Fifth Order for its Medical Cannabis IOT Precise Irrigation and Fertilization System: The CAD$315,000 order was received from an Israeli Licensed Producer who is currently building a 7,000 Square meters (approximately 75,000 Sq/ft) Medical Cannabis Cultivation facility in of Israel. The system is an IOT controlled Water & Control system for Cannabis cultivators and growers. The Company expects to deliver and install by the end of 2021.


June 14 -Announces Delivery of its Blueberries Irrigation Project in China Ordered by Driscoll's Subsidiary: Completed the delivery and installation of a 20 hectare turnkey blueberries irrigation project in the Province of Yunnan in China. The total value of the project was CAD$460,000.


June 24 - Water Ways' Canadian Subsidiary Enters Into a Distribution Agreement With "Amiad Water Systems" to distribute Water Filtration Systems in Canada: Amiad Water Systems Ltd. is a United Kingdom-based a producer and global supplier of water filters and filtration systems. The Company offers products for the industrial market, which includes traditional industry, municipal, ballast water and oil and gas markets, and the irrigation market.


June 30 - Announces Escrow Closing of First Tranche of a Private Placement: For up to 33,333,333 units at a price of CAD$0.12 per Unit (Warrant $0.18), for gross proceeds of up to CAD$4,000,000. The First Tranche closing will result in the issuance of 27,016,666 Units. The remaining balance of the Units being offered are expected to close by July 7, 2021.


July 27 - Announces Oversubscribed Private Placement of CAD$4.44M and Escrow Closing of Second Tranche: in connection with its previously announced private placement, closed an additional CAD$1.2 million into escrow (the "Second Tranche Closing"). The Second Tranche Gross Proceeds are in addition to the CAD$3.24 million closed and previously disclosed in our press release dated June 30, 2021.


Aug. 9 - Announces Fulfillment of All Conditions to Its Recently Announced Oversubscribed Private Placement


Aug. 16 - Receives a $CAD900,000 New Project in Vietnam: An order to deliver a Medjool date growing and cultivation project in Vietnam. The agreement was signed with a Vietnamese company that will grow the Medjool dates.


The company plans to deliver the following services: Planning the cultivation of the dates;Delivering the Medjool date young plants; and Designing the irrigation and fertilization system. Israel annually produces between 65% and 75% of all Medjool dates exported globally, and dates have become a major growth driver for the Israeli agriculture sector.


Aug. 23 - Announces Its Shares Being Quoted for Trading on the Frankfurt Stock Exchange.


Aug. 26 - Announces Corporate Matters: Appointment of Mr. Dor Sneh as Chief Financial Officer effective August 28, 2021. Second Quarter Release Date on on Monday, August 30, 2021. Investor Webinar scheduled for September 14 2021.


Aug. 30 - Reports Record H1 2021 Financial Results: Record H1 Sales of CAD$12,112,000 and EBITDA of CAD$832,000. Granted 1,5M stock options (at CAD$0.195) to directors and employees pursuant to the terms of the Company.


Sep. 9 - Appoints Dr. Reuter for Investor Relations in Germany


Sep. 13 - Receives Two New Smart Irrigation Component Orders Totalling C$1.3 Million: Two orders to deliver smart irrigation components to customers in Ethiopia and Peru. The Company is expected to recognize revenue from the orders in the last quarter of 2021. 1) A C$375,000 order to deliver smart and drip irrigation components for Nurseries in Ethiopia 2) A C$975,000 order to deliver smart irrigation components to a Blueberries irrigation project in Peru.


Sep. 29 - Receives Three Smart Irrigation Project Orders Totalling C$570,000: Received three orders to deliver smart irrigation projects to customers in Canada, China and Mexico.Revenue recognition expected in Q4 2021 and Q1 2022.


Nov. 2 - Receives Several New Smart Irrigation Component Orders Totalling Over C$1 Million From South America: Includes mainly smart irrigation component necessary to implement irrigation projects for Blueberries, Grapes and Mangoes. The Company expects to deliver the orders during Q4 2021 and Q1 2022.


Nov. 9 - Appoints North Equities for Investor Relations in Germany: In connection with the Contract, the Company will pay North Equities $C50,000 per quarter. North Equities currently owns zero shares of the Company. In addition, the Company will issue 900,000 stock options to North Equities pursuant to the Company's Stock Option Plan with an exercise price of $C0.24 to be vested over 12 months, with 25% due day one and 25% due every 3 months thereafter.


Nov. 11 - Receives New Orders for Its Medical Cannabis IOT Smart Irrigation and Fertilization System: Received three new orders for Medical Cannabis Internet of Things ("IOT") Water & Control systems (two from existing customers).


Nov. 29 - Reports Q3 2021 Financial Results: Record Nine Months Sales of CAD$15,764,000


Dec. 22 - Canadian Subsidiary Order Backlog for 2022 Exceeds CAD$4.1M; as of December 22, 2021, Heartnut Grove WWT Inc., backlog over CAD$4.1M . The orders are for agricultural and irrigation supplies and end-user farmers.


Dec. 30 - Announces Voting Results of Its Annual General Shareholders' Meeting


Jan. 3 - Strengthens its Board of Directors: Appointed Mr. Nitin Kaushal and Mr. Daniel Bloch.


Jan 12- Acquires a Majority of the Shares of Hidrotop: Hidrotop specializes in irrigation and hydraulic engineering operating in the agricultural and mining industries in Chile and Argentina. Hidrotop has installed over 30,000 hectares of irrigation projects and has extensive experience in automation and remote systems administration.



Summary

Water Ways Technologies (WWT.V) has yet again been re-valued in the past nine months going from a baseline of $0.12 cents, to a support level (s1) of $0.25 cents, eventually all the way up to a resistance point (S1) of $0.35 cents.


Earnings

As of Q3 2021, YTD revenue already exceeded FY2020. Most of the Service revenues returned to FY 2018 levels.

Note that Q1 and Q3 revenues were considerably stronger than Q3 2021. However, Q3 2021 revenues were lower and the net loss larger. As of Q3 2021, WWT.V was in a strong cash position ($4.37M)


Orders

Eight announcements were made in the period representing $3.95M. The majoritiy were for Blueberry and Canabis crops. WWT.V also receive orders for Passion Fruit, Cherries, Apples, Grapes, Mangoes and Vegetables.

Financing

Closed oversubscribed placement at $4.4M at $0.12 cents (warrants $0.18 cents) via 33M shares issuance (July 2021).


Appointments

Two major personel appointments were released in the last period: i) Mr. Dor Sneh as Chief Financial Officer (August 2021), and ii) Mr. Nitin Kaushal and Mr. Daniel Bloch to Board of Director (January 2022).


Listing

August 2021, Water Ways Technologies was listed on the Frankfurt Stock Exchange listing. Dr Reuter (September) and North Equities (November) were made subsequently appointed for investor relations purposes.


Acquisition

Last week, Hidrotop was acquired. Hidrotop is an irrigation and hydraulic engineering operating in the agricultural and mining industries in Chile and Argentina. Hidrotop has installed over 30,000 hectares of irrigation projects and is well versed in automation and remote systems administration.


In Short

Earning and valuation was exceptional YTD 2021. Indeed, Covid-19 restrictions easing were a factor.


Q3 2021 MD&A nine month period: ...The increase in revenues was mainly attributed to emerging markets effect following the Coronavirus impact. In most territories in which the Company operates, the Coronavirus restrictions on civilian movement, transit, and closed borders were lifted and enabled the Company finalize projects and receive new order.


YTD 2021 record revenues were also driven from Uzbekistan $4M record order; the largest in the company's history.


Q3 2021 MD&A: Revenues from service projects for the nine months period ended September 30, 2021, amounted to $6,405 compared to $1,651 for the nine months period ended September 30, 2020. The increase is mainly attributed to the Company's two major projects in Uzbekistan with total amount of $4,000.


This explains the revenue performance in Q1 and Q2 2021 and relatively fair revenues in Q 3 2021. No doubt, Q3 2021, Year over Year (YoY) revenues were higher than Q3 2020. However, compared to Q3 2019 depicts a different story.


Going forward, it will be important that Water Ways Technology provide backlog numbers. While the Canadian subsidiary numbers were provided in December 2021 ($4.1M), getting all of the subsidiaries backlog will be helpful.


Nonetheless. Hydrotop's acquisition (Chile, Argentina) extends WWT.V subsidiaries (Israel, China, Canada, & Uraguay). In constrast, the cost accounts for a significant portion of the WWT.V's cash CAD$4.7M balance as of Q3 2021.


WWT will pay an aggregate acquisition price of US$3,500,000, upon closing of the Acquisition (the “Closing“) consisting of: (i) a one-time cash payment equal to US$2,000,000; and (ii) issue 5,686,364 common shares in the capital of Water Ways (the “Subject Shares“) at a deemed price per Subject Share of CDN$0.33,


On one hand, the Uzbekistan revenues have been accounted for and a slower growth rate was reflected in Q3 earnings. On the other hand, the Hydrotop acquistion can be a catalyst going forward but needs to be paid for not only in cash (US $2.0M) but in shares (5.6M at $0.33 cents). Hence, the current resistance (R1 $0.35 cents) encountered makes sense.



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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