SCOTTSDALE, AZ AND CALGARY, ALBERTA, Nov. 12, 2014 /CNW/ - RDX Technologies Corporation ("RDX" or the "Company") (TSXV: RDX, OTCQX: RGDEF, FSE:RL7), a water treatment and energy technology company, today announces the acquisition of M2 Renewables ("M2R") previously located in southern California for cash and RDX common shares under an earnout agreement.
RDX has operated M2R under a management agreement since May 10th, 2013. The Company has worked with M2R staff and intellectual property to complete new industrial designs of the equipment and machinery. The M2R water treatment technology was improved through the robust design and manufacturing skill of RDX's Scottsdale manufacturing facilities. RDX brought all of the M2R manufacturing in house and has also integrated the M2R technology into the technology suite for waste water treatment by RDX. The purchase price included: (i) US$1,000,000 in cash, of which US$600,000 has been paid; (ii) an unsecured promissory note in the amount of US$2,000,000 and (iii) an earnout in the form of a convertible note of up to US$11MM based on M2R microscreen sales over the next three years. In connection with the agreement, RDX agreed to list the Company or an affiliate in the U.S.
The acquisition includes all of the issued and patents pending for the related machinery and technology.
The Company has seen a steady rise in machinery orders, which include dissolved air filtration, membrane filtration and microscreen installations. The Company has seen orders grow at a rate of approximately 15% month over month this fiscal year and sees continued growth well into 2015. The Company has given revenue guidance for fiscal 2015 and expects M2R division contributions to fiscal 2015 revenue of between $4MM and $5.5MM.
Dennis M. Danzik, RDX CEO stated, "The acquisition of M2R completes over a year and a half of hard work by our staff and we have now fully integrated M2R as an operating subsidiary of RDX. The intregated technology is now a part of the RDX family of available technologies for waste water treatment, water mining, recycling and reuse. The client list for the integrated technology suite, which now includes the M2R technology, is now growing RDX top line revenue month over month.
ON BEHALF OF THE BOARD OF DIRECTORS
"Dennis M. Danzik"
Dennis M. Danzik, CEO
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SOURCE: RDX Technologies Corporation
For further information: David Waldman at Crescendo Communications, Investor Relations, (212) 671-1021, [email protected]