As agreed, the company has delivered the following to the vendor: a payment of $700 000 in cash on closing; $100 000 by credit of the deposit amount previously paid by the company to the vendor; a payment of $400 000 by issuance of a promissory note to the vendor or as the vendor may direct; and 12 000 000 common shares of the company at $0.15 per common share.
In order to facilitate this acquisition, Current Water Technologies has also closed an initial tranche of the company’s proposed private placement in the amount of $1 325 000 for 8 833 333 units at $0.15 per unit. Each unit consists of one common share in the capital stock of the company and one half share purchase warrant, which is exercisable for a two-year period from the closing date. Two purchase warrants allow the holder to buy one addition common share at an exercise price of $0.25 per common share.
The company is expecting to close a second tranche of its non-brokered private placement by the end of January 2018.
The President and CEO of the company, Gene Shelp, said: “Current Water Technologies Inc. is extremely pleased to announce the acquisition of Pumptronics, which couples a strong baseline revenue stream with a robust sales pipeline that has significant growth potential in the near term, and blue-sky technology sales with a commensurate appreciation of shareholder value. By combining two complementary businesses, we have increased our depth and breadth of technical services and manufacturing capabilities.”