CALGARY, June 13, 2011 /CNW/ - Pure Technologies Ltd., ("Pure" or the
"Company") (TSX: PUR) announced today that it has purchased the
business and assets of Electromechanical Technologies, Inc. ("EMTEK"),
a Salt Lake City-based developer of advanced pipeline inspection
The base purchase price is US$3,000,000 payable in cash. There is
provision for additional payments of up to US$4,000,000 based on a
percentage of revenue recognized from the purchased technologies to the
end of 2013. Additional consideration cannot exceed US$2,000,000 in
any year. Any additional payments will be paid approximately 75% in
cash and 25% in Pure's common stock.
Commenting on the transaction, Jack Elliott, Pure's President and COO,
"The ground-breaking extra-high resolution magnetic flux leakage
(XHR-MFL) systems developed by EMTEK will immediately position Pure as
the industry leader in condition assessment of ferrous water and
wastewater pipelines. Conventional MFL is a well established technique
for inspecting oil and gas pipelines; however the internal cement
mortar lining common in water pipelines has always created challenges.
EMTEK's patented technology has overcome these challenges.
"While the majority of our growth to date has come from the inspection,
condition assessment and monitoring of prestressed concrete pressure
pipelines, this type of pipe represents less than five percent of the
total installed base of pressure pipe around the world. The EMTEK
technology, opens up a much larger available market to us, and
complements our SmartBall® and Sahara® solutions for leak detection and
condition assessment, which are applicable to all types of pressure
"In the oil and gas sector, we will now be able to package the EMTEK
system with our unique SmartBall leak detection system, thus providing
the only combined integrity and pinhole-leak detection capability
available on the market. Recent high-profile oil and gas pipeline
leaks in North America have resulted in increasing regulatory and
political pressure on operators to upgrade their leak detection
systems. We have already seen increasing interest in our SmartBall
system and we expect our enhanced offering to accelerate our growth in
"EMTEK's commitment to innovative non- destructive testing systems fits
well with Pure's aggressive R&D program and the patents acquired with
the transaction will strengthen our already comprehensive IP
portfolio. EMTEK's solutions will be delivered through our regional
offices in the Americas, Middle East and Australia; through our Hong
Kong joint venture in greater China; and through selected licensees."
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®, SoundPrint® AFO);
Recurring revenue from data analysis and site maintenance for these technologies, and from
Premium technical services including inspection, leak detection and condition assessment (P-Wave®,
SmartBall®, Sahara®, PipeDiver™, PureRobotics™);
Specialized engineering services in areas related to asset management, primarily in the area of pipeline
condition assessment for water and wastewater infrastructure (Openaka,
Price Brothers UK Ltd, and Jason Consultants).
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 the
Company'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, the Company's filings with
Securities Regulators (www.sedar.com).
® Registered Trademarks, property of Pure Technologies Ltd.
"The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release"
SOURCE Pure Technologies Ltd.
For further information:
To find out more about Pure Technologies Ltd. (TSX: PUR), visit our website at www.puretechltd.com. Or contact James E. Paulson, Chairman or Karen Keebler, Chief Financial Officer at (403) 266-6794 or e-mail to email@example.com.