LOS ANGELES & HONG KONG--(BUSINESS WIRE)--OriginClear Inc. (OTC/QB: OOIL), a leading provider of water treatment solutions, and its master licensee for China, OriginClear Hong Kong (OCHK), today announced that OCHK recently signed a binding Memorandum of Understanding (MOU) to launch a sales joint venture (JV) in the People’s Republic of China and the Republic of China (Taiwan). The JV partner is Mr. Ming Xu, an inventor and owner of a ceramic materials factory in mainland China.
Under the MOU, Mr. Xu committed to payments totaling $1 million over two months to purchase the rights to the JV, and has already completed the first payment to OCHK of $150,000.
“I am very happy with the speed of commercialization in China,” said Riggs Eckelberry, OriginClear CEO. “Mr. Xu’s commitment to our JV, as well as his strict timeline to launch the manufacturing plant, demonstrate to us that the technology is really in demand. My congratulations to the whole OriginClear Technologies™ team for this achievement!”
Under the MOU, Mr. Xu and OCHK plan to form a joint venture in China, intended to be a licensee of OCHK. The JV will sell equipment using OriginClear technology for People’s Republic of China and Taiwan markets. The partners intend to name the company OriginClear (China) and the MOU calls for Xu Ming to transfer 25 percent of its ownership and profit share to OCHK, in addition to meeting a royalty schedule. Finally, the JV will continue the development of the China-based manufacturing capability.
“While we continue to set up the manufacturing operation, we are demonstrating Electro Water Separation™ throughout China for specialty waste water treatment and algae harvesting,” said ‘JL’ Kindler, President of OriginClear Technologies, and Managing Director of OriginClear (Hong Kong). “We believe China is ripe for advanced water solutions, as it has reportedly budgeted $330 billion to address the problem, and Mr. Xu’s commitment to OriginClear will help us reach this fast-growing demand.”
To enable Mr. Xu’s participation, OCHK agreed to release the previously-announced Chinese precision manufacturer’s binding investment schedule in OCHK and to cancel all rights initially granted to that investor. The parties have agreed to convert the investor’s first payment of $100,000, made in September, into restricted shares in OriginClear, Inc. With this conversion, OriginClear (Hong Kong) will once again be a wholly-owned subsidiary of OriginClear, Inc.
About OriginClear, Inc.
OriginClear is a leading provider of water treatment solutions and the developer of a breakthrough water cleanup technology serving the rapidly growing $500 billion world market. Through its wholly owned subsidiaries, OriginClear provides systems and services to treat water in a wide range of industries, such as municipal, pharmaceutical, semiconductors, industrial, and oil & gas. To rapidly grow this segment of the business, we strategically acquire profitable and well-managed water treatment companies, which allow us to expand our global market presence and technical expertise. To enable a new era of clean and socially responsible water treatment solutions, we invented Electro Water Separation™, a breakthrough high-speed water cleanup technology using multi-stage electrolysis, that we license worldwide to water treatment equipment manufacturers. Water is our most valuable resource, and the mission of the “Family of OriginClear Companies” is to improve the quality of water and help return it to its original and clear condition. To learn more about OriginClear®, please visit our website at www.originclear.com.
OriginClear Safe Harbor Statement:
Matters discussed in this release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this update, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with our history of losses and our need to raise additional financing, the acceptance of our products and technology in the marketplace, our ability to demonstrate the commercial viability of our products and technology and our need to increase the size of our organization. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
China manufacturer agrees to pay $1 million for rights to joint venture with OriginClear Hong Kong; new partner pledges $1 million over two months and completes first payment of $150,000
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