- Dominion Water Reserves (DWR) has entered into a letter of intent for the acquisition of an Aquanord subsidiary, 11973002 Canada
- The acquisition will provide the company with 100 per cent interest in the Saint Joseph de Coleraine water sources
- The spring water source has a permitted extraction volume of 71 million litres per year, and contains silicon
- The company will issue 714,286 common shares and also pay an additional aggregate C$400,000 for the acquisition
- Dominion Water Reserves (DWR) is up 15.79 per cent and is currently trading at 22 cents per share
Dominion Water Reserves (DWR) has entered into a letter of intent for the acquisition of an Aquanord subsidiary, 11973002 Canada.
Pursuant to the arm’s length LOI, the company will acquire all issued and outstanding securities of the wholly owned subsidiary. The acquisition will provide Dominion with a 100 per cent interest in a water source located in Saint-Joseph-de-Coleraine, Quebec.
The spring water source has a permitted extraction volume of 71 million litres per year, and 13 parts per million of silicon content. Silicon is a trace element that is abundant in the human body, and may have natural regenerative properties.
As such, the water source’s unique silicium-based qualities make the acquisition very attractive to Dominion and the speciality water market. The company is likely to commercialise the source for its fresh spring water portfolio and bottled water product range.
To acquire 11973002 Canada and the Saint-Joseph-de-Coleraine water source, Dominion will pay consideration consisting of shares and cash. The company will issue 714,286 of its common shares, at C$0.35 each, worth an aggregate $250,000.
Dominion will also pay an additional aggregate $400,000 in intervals between September and October 2020. This will consist of $150,000 by September 1, $150,000 by September 30, and a final $100,000 by October 30.
Overall, the company will pay a total $650,000 to shareholders of 11973002 Canada for the acquisition.
Dominion’s Interim CEO, Marie-Claude Bourgie, commented on the company’s acquisition of the Aquanord subsidiary and its water sources.
“Dominion has the platform, relationships, and know-how to develop silicium-based water sources and products that are key to this water specialty market.
“We feel this acquisition will complement Dominion and be a strong addition to our current water initiatives and expansion,” she said.
Dominion Water Reserves (DWR) is up 15.79 per cent and is trading at 22 cents per share at 9:42am EDT.
