Pure Technologies Ltd. Announces CAD$20,002,200 Bought Deal Common Share Financing March 21 2011
CALGARY, March 21 /CNW/ - Pure Technologies Ltd. (”Pure” or the “Company”) (TSX Venture: PUR) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. and including Cormark Securities Inc. and Fraser Mackenzie Ltd. (the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, pursuant to a short form prospectus, 3,922,000 common shares (the “Common Shares”) of the Company at a price of CAD$5.10 per Common Share (”Offering Price”) for gross proceeds of CAD$20,002,200 (the “Underwritten Offering”). In addition, the Company will grant the Underwriters an option to purchase additional Common Shares at the Offering Price to raise additional gross proceeds of up to 15% of the Underwritten Offering (the “Over-Allotment Option”) exercisable for a period of up to 30 days after the closing date (the “Over-Allotment Option”, and together with the Underwritten Offering, the “Offering”).
The proceeds from the Offering are expected to be used by the Company for general corporate purposes. Closing of the Offering is anticipated to occur on or before April 13, 2011 and is subject to certain conditions.
PURE TECHNOLOGIES ANNOUNCES OVER $4 MILLION IN NEW WORK March 07 2011
CALGARY, March 7 /CNW/ - Pure Technologies Ltd., (”Pure”) (TSXV: PUR) is pleased to announce today it has recently been awarded new work in Canada and the U.S. for a combined value of over $4 million.
Technologies and services provided by Pure as part of these new projects include electromagnetic assessment of prestressed concrete cylinder pipe (PCCP); robotically-assisted video inspections; leak detection surveys utilizing SmartBall®; and professional engineering services by Jason Consultants LLC, a wholly-owned subsidiary of PureService Inc.
Canada and the U.S. remain strong areas of growth for the company. This new work demonstrates the growing interest by water and wastewater utilities in Pure’s asset management technologies and services. Specifically, utilities in North America are faced with aging infrastructure and therefore need to maximize the life of these assets; Pure is one of the few companies worldwide that is able to fulfill this need.
Libya Update : Investors Sticking it out with Pure Technologies March 01 2011
Source: Jonathan Ratner (Financial Post)
http://business.financialpost.com/2011/03/01/sticking-it-out-with-pure-technologies/
Analysts appear to be sticking with Pure Technologies Ltd. after the Calgary-based company safely evacuated all of its expatriate staff from Libya. Pure’s local deputy branch manager remains in Benghazi to handle business affairs with government agency the Great Man-Made River Authority (GMRA), while evacuated employees are being temporarily reassigned to projects in other regions.
That is expected to remain the case until Canadian sanctions, which includes a ban on financial transactions with the government of Libya and related parties, are lifted and the company’s Libyan operations can return to normal.
Canadian companies already operating in Libya on a commercial basis, such as Pure, would be allowed to continue doing so. However, they would be restricted from conducting financial transactions with the state government and Libya’s central bank.
GMRA, which supplies drinking water to major cities and agricultural land, accounts for about $15-million, or 20%, of Canaccord Genuity analyst Sara Elford’s 2011 revenue forecast of $74-million. She continues to rate Pure shares a Buy, with a $6.50 price target.
The stock has fallen 12% in the past two weeks, ending February at $5.25 after hitting a 52-week high of $5.97 on February 14.
“If sanctions are lifted over the next few months, our forecast should remain largely intact,” Ms. Elford told clients. “The stock is likely to remain volatile in the short term.”
Roughly 30% of Pure’s budgeted 2011 revenue has exposure to Libya. However, following its acquisition of Pressure Pipe Inspection Company Ltd. and efforts to build its global platform, Pure’s exposure to Libya has and continues to decline, the analyst noted.
Under a worst-case scenario where Pure receives no further contracts from GMRA, Stonecap Securities analyst Chris Blake said his target price would decline to $4.50 per share from $5.50. Although he considers this outcome unlikely.
For now, Mr. Blake has made no changes to his forecast, but expects the stock will remain under pressure until the situation in Libya stabilizes.
Pure plans to report year-end results on March 16.
