Fort Worth, TX (GLOBE NEWSWIRE) - via NEWMEDIAWIRE - Water Now, Inc. (“Water Now” or the “Company”) (OTC: WTNW) a leading water purification solutions company, hereby provides additional details on its previously announced five-year Exclusive Distributor Agreement (the “Agreement”) between Hydraspin USA, Inc. and a Texas-based oil producer (the “Distributor”).
The Agreement provides that Hydraspin USA shall provide the units to the Distributor at no cost. Hydraspin will in turn receive 92.5% of net revenues for the first 10 installed units and 85% of the net revenues for all subsequently installed units. The Company is currently in negotiations with potential lending partners with a track record of financing oil field equipment to fund the acquisition of the units.
The Company is in the process of securing necessary financing to allow for the following projected installations: two units by the end of January 2020, two units in February 2020, four units in March 2020, six units in April 2020, six units in May 2020, and six units in June 2020.
For the Distributor to maintain the exclusivity granted in the Agreement, it must deploy products in 25 new locations during each 12-month period following the effective date of November 12, and all customer locations must generate, in the aggregate, an average of 7,500 barrels of water with at least a 2% oil content in each per day. If the Agreement is extended beyond the initial term of five years, the number of customer locations to be secured to maintain exclusivity shall be increased to 50 per year.
The Company and the Distributor estimate that the first 25 units deployed will generate approximately $40 million in gross annual revenues for Hydraspin.
David King, Chief Executive Officer of Water Now, stated, “We wanted to take the opportunity to provide further details on what is truly a transformative agreement for Water Now. Our technology has been validated after a wide range of on-site demos and independent laboratory testing for the quality of the oil extracted, proving the massive potential for our Hydraspin technology within the oil industry.”
About Water Now, Inc.
Water Now, Inc., headquartered in Ft. Worth, Texas, has developed a water purification technology that cost-effectively produces portable water from fresh or saltwater sources. Our flameless heating process distills water without the need for filters, membranes, or chemicals, eliminating maintenance costs as well as downtime caused by clogged membranes and filters. Our mission is to create solutions that make clean, affordable water available anywhere on the planet and to help end the spread of disease through contaminated water sources. For more information, please visit www.waternowinc.com.
Forward Looking Statements
Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements Water Now, Inc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Water Now, Inc. assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the Securities and Exchange Commission ("SEC"). There may be other factors not mentioned above or included in the Water Now's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. Water Now, Inc. assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by securities laws.
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SOURCE: Water Now, Inc.