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6 Months : From Apr 2019 to Oct 2019
Seven Seas Water, an operating segment of AquaVenture Holdings Limited (NYSE: WAAS) (“AquaVenture” or the “Company”), a leader in Water-as-a-Service® (“WAAS®”) solutions, today announced that it has received a formal notice from Curaçao Refinery Utilities B.V. (“CRU”) that it is exercising its right to purchase the Company’s desalination facilities pursuant to the existing water supply agreement.
The existing water supply agreement with CRU began in December 2008, with the Company providing water from a desalination plant with an initial design capacity of 0.5 million gallons per day under a 5-year contract. This agreement has been amended several times, resulting in both expanded water production to the current design capacity of 4.9 million gallons per day and an extended contract expiration date of December 31, 2019. In addition, the contract expiration date will be extended to December 31, 2022 if CRU’s contract with Refineria di Kòrsou (“RdK”), the owner of the refinery, is extended as a result of RdK’s negotiations with the current operator of the refinery, Petróleos de Venezuela, S.A (PDVSA).
The contractual buy-out right requires payment to be made at the contract expiration date. The applicable buy-out amount, if consummated, will be either $3.5 million or, if CRU’s contract with RdK is extended as mentioned above, $2.5 million.
Olaf N. Krohg, Seven Seas Water’s CEO, commented: “We value the fruitful and constructive relationship that we have had with CRU over the last decade. During this time, we have regularly increased our water production to meet CRU’s water needs. According to published reports, RdK is also actively considering proposals from other parties to operate its refinery. We are actively working with CRU and RdK and remain open to constructively engaging with any future operator of the refinery, and will continue to deliver high levels of service through the duration of our contract.”
AquaVenture is a multinational provider of WAAS® solutions that provide customers a reliable and cost-effective source of clean drinking and process water primarily under long-term contracts that minimize capital investment by the customer. AquaVenture is composed of two operating platforms: Quench, a leading provider of filtered water systems and related services with over 140,000 units installed at institutional and commercial customer locations across the U.S. and Canada; and Seven Seas Water, a multinational provider of desalination and wastewater treatment solutions, providing more than 8.5 billion gallons of potable, high purity industrial grade and ultra-pure water per year to governmental, municipal, industrial and hospitality customers.
About Seven Seas Water
Seven Seas Water offers WAAS® solutions by providing outsourced desalination, wastewater treatment and water reuse solutions for governmental, municipal (including utility districts), industrial, property developer and hospitality customers. Our desalination solutions utilize seawater reverse osmosis and other purification technologies to produce potable and high purity industrial process water in high volumes for customers operating in regions with limited access to potable water. Our wastewater treatment and water reuse solutions include scalable modular treatment plants, field-erected treatment plants and temporary bypass plants that are used by our customers to treat and convert wastewater into effluent or reclaimed water prior to being released back into the environment.
Safe Harbor Statement
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to AquaVenture’s ability to continue its contractual relationship with CRU; its ability to work constructively with CRU, RdK or any future operator of the refinery; and its expectations regarding the buy-out price under the water supply agreement; and its expectations regarding the potential impacts of the buy out on its performance, growth, cash flows and margins, constitute forward-looking statements. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors detailed in AquaVenture’s filings with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, AquaVenture’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. AquaVenture is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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