PURE CLOSES ACQUISITION OF AQUA ENVIRONMENTAL PTY. LTD.
05 October 2010 - 11:22PM
PR Newswire (Canada)
CALGARY, Oct. 5 /CNW/ -- CALGARY, Oct. 5 /CNW/ - Pure Technologies
Ltd. ("Pure") (TSX-V:PUR) announced today that it has concluded the
purchase of Aqua Environmental Pty. Ltd. ("Aqua") for up to
CAD$5.88 million in cash and common stock of Pure. Aqua, a
privately-held company headquartered in Sydney, Australia, provides
services relating to water main leak detection, water loss
management and pipeline condition assessment in Australia and New
Zealand. Founded in 1979, the company has been a major provider of
pipeline leak detection and condition assessment for the region. As
such, this acquisition positions Pure to build on the established
expertise and have a presence in the Australian region, which holds
significant opportunity. Both of Aqua's Principals, Hugh Chapman
Sr. and Hugh Chapman Jr. will continue to be involved in the
business. For the fiscal year ended June 30, 2010, Aqua had
revenues of $1.97 million. The base purchase price is $2,940,000.
There is provision for additional payments of $980,000 per year for
three years should Aqua generate revenues of $1,960,000 for each
year. The purchase price is based on a working capital balance of
$245,000 at closing and will be adjusted on a dollar-for-dollar
basis depending on the actual working capital at closing.
Consideration paid at closing was $2,205,000 in cash and Pure
issued 169,355 shares valued at $4.34 per share which was
negotiated as part of the transaction. Any additional payments will
be paid approximately 75% in cash and 25% in Pure common stock with
an attributed value of $4.34. The business will continue to operate
under the name of Aqua for the foreseeable future. "With this
acquisition, Pure will now provide pipeline leak detection,
condition assessment and asset management services in Australia,
where drought has led to an increased emphasis on water
preservation," said Jack Elliott, Pure's President and Chief
Operating Officer. "The State and Federal governments have invested
heavily in water infrastructure and to fund such projects, the
retail cost of water has risen substantially. Reducing leakage with
proactive techniques and technologies is vital to the region," he
said. About Pure Technologies Ltd. Pure Technologies Ltd. is an
international asset management technology and services company
which has developed patented technologies for inspection,
monitoring and management of critical infrastructure around the
world. Pure's business model incorporates four distinct but
complementary business streams: - Sales of proprietary monitoring
technologies for pipelines, bridges and structures (SoundPrint(R),
SoundPrint(R) AFO); - Recurring revenue from data analysis and site
maintenance for these technologies, and from technology licensing;
- Premium technical services including inspection, leak detection
and condition assessment (P-Wave(R), SmartBall(R), Sahara(R),
PipeDiver (TM), PureRobotics(TM)); - Specialized engineering
services in areas related to asset management, primarily in the
area of pipeline condition assessment for water and wastewater
infrastructure (Openaka Corp., Price Brothers UK Ltd, and Jason
Consultants). Forward-Looking Statements This release contains
forward-looking statements. Forward-looking statements, without
limitation, may contain the words believes, expects, anticipates,
estimates, intends, plans, or similar expressions. Forward-looking
statements are not guarantees of future performance. They involve
risks, uncertainties and assumptions and Pure's actual results
could differ materially from those anticipated. Forward looking
statements are based on the opinions and estimates of Management at
the date the statements are made, and are subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking statements. In the context of any forward-looking
information please refer to risk factors detailed in, as well as
other information contained in, Pure's filings with Securities
Regulators (www.sedar.com). "Neither the TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release." (R) Registered
Trademarks, property of Pure Technologies Ltd. %SEDAR: 00006060E
about Pure Technologies Ltd. (TSX-V: PUR), visit our website at
www.puretechnologiesltd.com; contact James E. Paulson, Chairman or
Karen Keebler, Chief Financial Officer at (403) 266-6794; or e-mail
to: info@puretechnologiesltd.com
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