NanoStruck Technologies Inc., a Canadian technology company, has signed a binding agreement to acquire a clean-tech business which has averaged $5.2 million revenue with pre-tax profits between $0.46 million and $1.21 million over each of the past 3 years. This purchase is seen to be the first of a number of acquisitions the company has in its sights.
"This acquisition is transformative for both parties," says Bundeep Singh Ranger, Chairman of NanoStruck's board of directors. "It helps realize our strategic goals of growing revenue, increasing technology prowess and expanding in new markets."
NanoStruck's NanoPure solutions for water purification currently use modifications to conventional technologies with added polymer-based nano-filtration to remove molecular sized particles. These absorptive organic polymers are versatile biomaterials derived from crustacean shells or plant fibres, depending on how they will be used. The nanometre sized polymers act as molecular sponges and are custom programed to absorb specific particles. Both the process and the polymers are patented. The technology can be used to remove acids, hydrocarbons, pathogens and toxins from water, to bring it up to EPA and World Health Organization standards for agricultural or drinking water use.
A variation of the technology, NanoMet solutions recover precious metals, including gold, silver, platinum, palladium, and rhodium from mine tailings.
This acquisition will enable NanoStruck to speed up the timetable for commercializing its technologies for recovering precious metals from mining ores and tailings.
The target company's intellectual property includes both patents and know-how used to develop proprietary technologies. The combined companies can further unlock the potential value of these technologies. In addition to NanoStruck's current patents, the combined companies will co-own eight patents, strengthening NanoStruck's suite of intellectual property. Additional intellectual property development will be carried on jointly.
"Our combined teams and technologies will result in formidable water treatment, mine tailings and minerals processing technologies being offered in key markets," says Ranger.
NanoStruck intends to tap into its extensive network of mining industry contacts and shareholders to generate new business for the combined companies. The current business model is to sell water remediation plants or to lease them with an agreed upon charge per litre. For processing mine tailings the value of the recovered precious metals is shared on a negotiated basis with the tailings site owner.
Completion of the agreement is still subject to several conditions, including final due diligence and regulatory approval. For confidentiality reasons the target business cannot be named at this point.
NanoStruck Technologies is a publicly traded company (CSE:NSK) (OTCQX:NSKTF) (Frankfurt:8NSK). Learn more at www.NanoStruck.com or contact the company at 905-813-0900.