CALGARY, May 26, 2014 /CNW/ - Pure Technologies Ltd. ("Pure" or the "Company") (TSX: PUR) announced today that its wholly-owned subsidiary, Pure Technologies U.S. Inc. ("Pure U.S."), has been awarded a contract to provide condition assessment services on a portion of a major steel pipeline carrying treated drinking water within California. This new work, worth $1.2 million and expected to start during the fourth quarter, represents the second phase of a previously announced contract completed in late 2013.
Pure's magnetic flux leakage ("MFL") technology will be utilized to assess this critical pipeline for damage by corrosion and other causes and is the most advanced method of metallic pipeline condition assessment available today.
The inspection of metallic pipelines represents a significant growth opportunity for Pure. Metallic pipes (cast iron, ductile iron, steel) account for approximately 65% of North American water pipeline assets (US EPA, 2009). Historically, the Company's main growth driver has come from services related to pre-stressed concrete cylinder pipes which make up approximately 3% of the total. In addition to MFL technology, Pure has developed other solutions for the inspection of metallic pipes utilizing its existing, proven technology platforms.
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 technology licensing;
- Premium technical services including pipeline inspection, leak detection and condition assessment (PureEM™, SmartBall®, Sahara®, PipeDiver®, PureRobotics®; PureMFL™;
- Specialized engineering services in areas related to asset management, primarily in the area of pipeline condition assessment for water and wastewater infrastructure.
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).
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SOURCE: Pure Technologies Ltd.
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