Forward Water Technologies Inc, the Canadian wastewater treatment company, has inked a definitive agreement with Hope Well Capital Corp to take the company public on the TSX Venture Exchange by way of a reverse takeover.
The transaction – first announced in February 2021 – is structured as a three-cornered amalgamation that will see the resulting company operate as Forward Water Technologies Corp.
The Toronto-based company is commercializing its proprietary forward osmosis technology that allows manufacturing operations to clean their wastewater and reclaim up to 90% of the waste as clean water.
WATCH: Forward Water Technologies ready to deliver its commercial-scale, membrane-driven wastewater tech
In a February statement announcing the transaction, Forward Water Technologies CEO Howie Honeyman told shareholders that “(with) the financial strength FWT acquires from this merger and concurrent capital raise, FWT will be able to drive adoption in the global opportunities it has already identified."
The company ended 2020 by signing its first technology license transfer contract with an India-based engineering services firm. Its Indian partner is currently involved in commercial trials on multiple sites and plans to expand the use of FWT's technology throughout the region.
FWT also has its eyes set on North America and Europe for potential business opportunities.
Under the terms of the definitive agreement, FWT shareholders will receive five fully paid and non-assessable common shares in the capital of the new company for each FWT share held at the deemed price of $0.20 per resulting issuer share. Holders of outstanding FWT securities will have their securities replaced with securities of the new company in numbers and exercise prices, as applicable, adjusted based on the exchange ratio.
Current CEO Honeyman will take the reins of the new company, with Wayne Maddever in the COO role. Both executives will serve on the board of directors along with John Koehle, Sheldon Kales and Andrew Pasternak, who will act as chairman.
FWT reported $449,131 in revenue and a net loss of $965,402 for the 12-month period ended March 31, 2020.
