Toronto, Ontario--(Newsfile Corp. - June 28, 2018) - Xogen Technologies Inc. (the "Corporation" or "Xogen") wishes to clarify for its stakeholders and for the public markets the nature and details of Xogen's discussions and offer to Current Water Technologies Inc. ("Current Water") to merge Xogen and Current Water and financing for the transaction.
Background — Xogen and Current Water
Xogen and Current Water are both in the water treatment business each with complimentary electro oxidation and electro chemical technologies. Xogen has been in business for 18 years and although not a reporting issuer or listed on a stock exchange has a substantial committed and loyal stakeholder base. Current Water is a reporting issuer listed on the TSX Venture Exchange ("TSXV").
Xogen believes there are compelling reasons to merge Xogen and Current Water, combining the strong commercial emphasis Xogen is taking to make revenue generation from technology the primary objective, with the additional Intellectual Property portfolio of CWTI and the technical expertise of Current Water founder and CEO, Dr. Gene Shelp.
On May 11, 2018 Xogen provided Current Water management a letter of intent / term sheet including broadly stroked terms of a merger of Xogen and Current Water and conditional concurrent financing (the "Offer"). Xogen management further engaged with Current Water management in person, by telephone and email.
After feedback from Current Water on May 23, 2018, by email Xogen sent a revised letter of intent outlining the reviewed Offer by Xogen to Current Water, to effect a business combination (a) to be given effect by way of 3-corner amalgamation or comparable transaction; and (b) to be conditional upon concurrent financing by Xogen of $4,000,000.
Although Xogen requested CWTI respond by May 25, 2018 (and offered to extend if CWTI requested more time), Xogen has not yet had a response from CWTI.
In the face of Current Water's lack of response Xogen disengaged, advising Current Water management on June 6, 2018 that the Offer should be considered withdrawn.
Xogen Seeks Shareholder Mandate
In anticipation of potentially being able to pursue the Offer in the future, Xogen is asking its shareholders at its annual general meeting to be held in Calgary on July 5, 2018 for approval and a mandate to pursue the Offer should its Board of Directors deem it appropriate to do so in the future..
For further information, shareholders, stakeholders and interested persons should contact David Deacon (416) 209-2826.
News Provided by Newsfile Corp.