Water Ways Tech (TSX-V:WWT) Taps into Canadian Irrigation Market Via Heartnut Grove Acquisition

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Water Ways Technologies recently closed acquisition of Heartnut Grove, a Canadian distributor of irrigation and agriculture components based in Mount Brydges, Ontario. After paying C$475,000 in cash and C$25,000 in shares, Heartnut Grove is now a wholly-owned subsidiary of Water Ways Tech.

Heartnut Grove

  • Estimated Revenues (Previous fiscal year): CAD$3.74M
  • First four months of fiscal 2019: CAD $1.56M

Acquisition Cost: Approximately CAD $500,000

Water Ways Technologies

  • 2018 Revenues: CAD$15.7M
  • Current Market Cap: Less than CAD$15M

The strategic rationale for the acquisition was to provide exposure to the Canadian market by utilizing the established network and relationships that Heartnut’s management has built over the years and provide a point of entry into Canadian cannabis market. While the Company has done business on four continents, this acquisition provides it its first permanent base of operations in North America for the Company.

“Our long term goal is to establish Water Ways as a leading irrigation and agro-technology provider worldwide. We aim to build a significant presence in the North American irrigation market. The first step toward achieving this goal was completing the acquisition of the assets of Heartnut Grove to serve as our sales and distribution center for North America serving both the North American farming community and Canadian irrigation and all need for the Cannabis growers LP’s. We will also strive to launch our DataWays technology to assist in implementing irrigation projects in Canada and the USA by using this cutting edge technology using Artificial Intelligence and Machine Learning capabilities to ramp up our sales worldwide giving a significant advantage over our competitors. Using the experience we gained through the Cronus group irrigation project in Israel we aim to turn Water Ways into a major cultivation project vendor to the Canadian legal Cannabis Cultivation community,” said Water Ways Tech CEO and Chairman Ohad Haber.

Hazelnut Grove’s sole shareholder, John Pol, has entered an employment agreement to manage the new subsidiary, bringing his sales force with him to the new company.

The Company continues to evaluate potential M&A opportunities and strategic partnerships on a case by case basis and continues to evaluate proposals from potential advisors to assist with those efforts. The Company’s management believes that acquiring irrigation product and service distributors in the new markets as would help it increase its foothold and distribution presence and potentially lead to other revenue opportunities in those markets.

Water Ways Technologies management team continues to execute well and this acquisition will boost the sales of WWT for 2019.

Water Ways Technologies Investors Group (Facebook): Here

Source: Newswire, Investingnews

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