PHOENIX, AZ, June 6, 2013 /CNW/ - GWR Global Water Resources Corp.
("GWRC") (TSX: GWR) today announced that Global Water Resources, Inc.
("Global Water" or the "Company") has sold a majority interest in its
Smart Grid for Water Platform, FATHOM™. XPV Capital and other
investors will acquire a majority interest in FATHOM™, through a
partnership structure, and provide additional capital to fuel its
growth, eliminating the need for further investment from Global Water.
The Company expects organic growth from the regulated utilities to
accelerate through 2013 and anticipates the finalization of its utility
rate proceeding in the first quarter of 2014. With a minority interest
stake in FATHOM™ and the elimination of further capital requirements in
FATHOM™ from Global Water; the Company will be able to reallocate
returns in the best interest of the business and its shareholders. As
part of this process the Company intends to consider the introduction
of a dividend policy based on the ability of the regulated business to
generate consistent positive and growing cash flows.
"It's the right time for the separation of the regulated business and
FATHOM™. The fundamentals of our regulated business are very strong,
stable and growing with the housing market recovery well underway in
the Greater Phoenix Area and a rate case submission before the
regulator," said Trevor Hill, President and CEO of Global Water. "XPV
Capital is a natural partner with which to align ourselves as they have
a unique and deep understanding of the water market and share our
confidence in the future of FATHOM™. Our utility customers will
continue to benefit from the FATHOM™ platform as we anticipate
additional capital and scale will drive increased speed, functionality
and platform enhancements for customers."
Under the terms of the partnership, Global Water will receive $5 million
in cash at the time of closing and the potential to earn an additional
$15 million based on certain performance criteria of the FATHOM™
business. Global Water will invest $1.5 million into FATHOM™ for a
minority stake in the business and will also continue to utilize
FATHOM™ services within its regulated business under a 10-year services
contract. The Company will have a seat on the FATHOM™ Technical
Advisory Council, which will participate in the visioning and
technology road map that FATHOM™ will bring to the sector. The FATHOM™
and Utility-to-Utility™ brand will be maintained within the
Changes to Management
Trevor Hill, President and CEO of GWRC and Global Water will ultimately
move to the role of Chairman of GWRC and Global Water. Effective at
closing, he has also assumed the role of Executive Chairman of FATHOM™.
About GWR Global Water Resources Corp and Global Water
GWR Global Water Resources Corp. owns an approximate 48.1% interest in
Global Water, a pure-play, high growth, water resources company located
in Phoenix Arizona that owns and operates regulated water, wastewater
and recycled water utilities.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These
forward looking statements include, but are not limited to our plans,
objectives, expectations and intentions, and other statements contained
in this release that are not historical facts as well as statements
identified by words such as "expects", "anticipates", "intends",
"plans", "believes", "seeks", "estimates", or the negative of these
terms, or other words of similar meaning. These statements are based
on our current beliefs or expectations and are inherently subject to
significant uncertainties and changes in circumstances, many of which
are beyond our control. Actual results may differ materially from
these expectations due to changes in global political, economic,
business, competitive, market and regulatory factors and other factors
discussed under the heading "Risk Factors" in the Company's most recent
Annual Information Form. We undertake no obligation to publicly update
any forward-looking statement, except as required by law, whether as a
result of new information, future developments or otherwise.
SOURCE: GWR Global Water Resources Corp.
For further information:
Tel: 416.815.0700 ext. 238