CWTI signs agreement with Separtis
Current Water Technologies Inc. is pleased to provide additional information on the proposed Joint Venture (JV) with Separtis Technologies Global Pte Ltd of Singapore.
CWTI will provide Separtis with exclusive sales and marketing rights to the Company’s portfolio of innovative electrochemical technologies, whereas Separtis will guarantee the financing necessary for the first five (5) years of operation for the JV. CWTI and Separtis will jointly contribute towards the development and assembly of a pipeline of potential water treatment projects in Australia, Canada and the United State in the municipal sector, as well as the following industrial sectors: agriculture, fertilizer, food, mining, and oil and gas. Each of CTWI and Separtis will appoint two directors to the board of the JV.
Upon execution of the Definitive Agreement on or before February 28, 2023, CWTI shall receive US$1,000,000 Annual Licensing Fee. CWTI receives US$150,000 advanced payment. Separtis shall award the JV contracts for four (4) commercial full-scale waste water treatment plants, and the design and the construction of the waste water treatment plants will be contracted to CWTI. The basic design and engineering program for the initial project is expected to commence Q2 2023. Furthermore, Separtis will support the launch of the JV by covering the operating expenses of the JV and the Licensing Fee to CWTI until such time as sufficient income is generated to sustain the business, or for the first five (5) years, whichever is sooner.
Dr. Gene Shelp, CEO, said, “CWTI expects that the baseline revenue associated with the establishment of the JV will ensure the financial stability of the Company without the need to raise additional capital in the near term to support commercial activities and technology development. Furthermore, CWTI will retain all ownership of its intellectual property.”
“We believe the proposed strategic sales and marketing partnership is a fitting culmination of a decade of scientific research and development that has succeeded in creating innovative solutions that assist municipalities and industry to effectively manage nitrogen compounds such as aqueous ammonia and nitrate/nitrite and the greenhouse gas nitrous oxide. Our initial success was the development of the AmmEL electrochemical water treatment plant, which converts ammonia in waste waters into environmentally friendly nitrogen gas without producing any byproducts that are either toxic to aquatic ecosystems or contribute to climate change. Recently, the Company made a major advancement with the development of the AmmEL-H2 system, which adds revenue streams from the production of Green Hydrogen and a valuable disinfectant, and from the generation of carbon credits.”
