OTTAWA, April 13, 2012 /CNW/ - Seprotech Systems Inc. is pleased to announce that the Department of National Defence (DND) has increased the available and confirmed funding by $4.52 million under an existing contract (previously announced on June 24, 2011).
The contract is for repair and overhaul, engineering support and field service support for two classes of water purification systems owned and operated by DND. The increase of $4.52M combined with the unused budget for the 2011 FY (due to mid-year award of the contract) brings confirmed and immediately accessible funds to approximately $10.8M of the $14M total budgeted funds under the contract. Actual projects undertaken by Seprotech and expenditures related thereto are subject to DND approval.
The original term of the contract was for 2 years with three possible 1-year extensions estimated at $2.8M per year for an estimated total potential value over the five years of $14,000,000. While the overall maximum budget remains unchanged, the increased allocation significantly increases the potential activity which might now be directed to Seprotech over the near term.
"We are very pleased to have these additional funds allocated and confirmed much earlier in the contract and this clearly demonstrates the high degree of confidence that DND places in Seprotech" said Harry Marshall, President & CEO of Seprotech. "Following a year in which the Canadian Forces have performed important water supply missions in various parts of the world the team at Seprotech is delighted that the high standard of work expected by the Canadian Military has been recognized."
The final amount spent in any given year is at DND's discretion and varies according to military needs. The contract provides the Canadian Forces with immediate response and support to their equipment requirements.
Seprotech is a provider of pre-engineered water and wastewater treatment solutions to the municipal/land development, resource sector and military market place, including Reverse Osmosis water purification systems, ROTORDISK® biological sewage treatment package plants and CrystalBlue™ membrane-based water recycling systems.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved of the information contained herein. Some of the statements in this press release, including those relating to the Company's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as required by law.
For further information:
Ian Malone, Chief Financial Officer
Tel: (613) 523-1641 x12
Fax: (613) 731-0851