NanoStruck Technologies (CSE:NSK, Stock Forum) moved one step closer to the strategic acquisition of an unnamed clean tech company when the company announced today that it had signed a binding agreement on acquisition terms.
According to the news release, the accretive acquisition would allow the company to consolidate financial results between the two parties, noting that the target business reported an annual revenue between $4.23 million and $7.03 million with a pre-tax profit between $0.46 million and $1.21 million for the years 2011-2013.
The target company was described as a business geared toward the provision of clean technology solutions in the mining, water treatment, clean energy and specialty chemical industries with facilities for beta testing and running pilot plants using physical, chemical and thermal processing.
It is expected that the acquisition will give the company the opportunity to accelerate the commercialization of its technology for recovery of precious metals from mining ores and tailings. The company expects to tap into its suite of mining industry shareholders to generate new business for the combined companies.
Company Chairman, Bundeep Singh Ranger, commented on the pending transaction, “This acquisition is transformative for both parties. It helps realize our strategic goals of growing revenue, increasing technology prowess and expanding in new markets. Our combined teams and technologies will result in formidable water treatment, mine tailings and minerals processing technologies being offered in key target markets.”
The transaction is still subject to the signing of a definitive purchase and sale agreement upon completion of due diligence.
NanoStruck was in the news recently when the company announced its 2014 AGM results at the end of June.
Currently there are 92.0m outstanding shares with a market cap of $5.1 million.
FULL DISCLOSURE: NanoStruck Technologies is a Stockhouse Publishing client.