Cavitation Technologies, Inc. (CTI); (OTC BB: CVAT); is a "Green-Tech" company, established in 2006 to become a world leader in the development of new cutting edge technologies for the vegetable oil refining, renewable fuel, petroleum, water treatment, wastewater sanitation, food and beverage, and chemical industries. The Company, public since 2008 is listed on the OTCBB. Fully diluted, CVAT has approximately 125 million shares outstanding with a 52-week range of $0.11 to $0.61.
CVAT's Nano-Tech reactors provide a revolutionary process advancement in fluids refining and distillation by either separating or combining the different attributes of a fluid solution at the molecular level. Early benefits achieved in the R&D phase are significant cost savings, decreases in processing plant space needs, reduction of carbon emissions and improved safety considerations through the reduction of chemicals needed to refine food oils. The reactor is a recurring revenue licensed piece of equipment installed using a by-pass method to existing facilities.
The overall benefits of this technological breakthrough are comparable to the impact that the transformation from the mainframe computer to the laptop has made on tech companies throughout the world. In a global economy that is at best uncertain, the ability to maximize cost savings and efficiencies, as well as improve margins and yields at the production level is key to success. CVAT's reactor will help food oil refiners achieve this goal with the ability to have higher profit margins and pass along savings to wholesale and retail consumers.
To date, the Company has had minimal revenues but anticipates considerable revenues by comparison in the subsequent quarters. A recent contract with the industry leader, Desmet Ballestra, owned by Barclays Global, positions CVAT as the exclusive potential licensor for the 4800 edible oil processing plants worldwide that can greatly benefit from this refining advancement. While engaged with Desmet Ballestra, CVAT will be able to leverage Desmet's industry leading sales and engineering force of over 1,300 people for exclusivity for edible oil applications. Desmet Ballestra Group (DBG) is the market leader providing the most advanced and efficient processing equipment and systems to the $100 Billion Dollar a year food oil extraction and refining industry.
According to industry analysts, this new technology can save a minimum $1.26 per ton of oil processed with the potential to save up to $6.00 or more per ton. Worldwide, more than 163 million tons of edible oils are produced and consumed each year of which 57 million tons is soy and canola oil. Conservatively estimated, implementation of CTI Green D Plus Nano Cavitation Technology will save the industry more than $70 Million USD every year for soy and canola installations alone. CTI projects significant revenue within the next 12 months having initial commitment for at least 20 plant installations annually.
Essentially, 30 systems for 2010 can translate into $15,000,000 in revenues with a very high margin (60-80%). However, Desmet Ballestra, with more than 1 billion in annual sales, did not sign an exclusive licensing agreement with CVAT to install a mere 30 systems per year when they boast over 5,000 possible customer installations worldwide.
CTI can cater to considerable distribution needs by varying customer applications through its technology business-licensing model. This makes scalability a matter of increasing outsource relationships as opposed to internal production ramp up. Production capacity is consistent with the large abilities of its current manufacturing outsources capable of producing as much as a couple hundred installations per month. This can easily translate into the potential of tens of millions in sales and profits per year from this one industry application alone. The Company has very modest projections that will likely be revised upwards based on current activity and demand.
Cavitation Technologies continues to introduce new industry applications such as water filtration and purification, spirits aging accelerant, fossil and biofuel refinement, mining and petroleum industry waste water treatment, beverage pasteurization and homogenization. There are also a variety of blending applications ranging from biodiesel/diesel to ethanol/gasoline to water-oil and other industrial applications such as the chemicals, lubricants, paints, soap, detergents, and personal care industries.
In addition Cavitation's C10 NANO Reactor Skid System is designed to increase the yield of refining crude petroleum. For example, Cavitation has conducted tests whereby cavitation technology was used to produce 5% to 15% more diesel and gasoline from the same barrel of crude oil at lower temperatures. The process may also produce a higher percentage of other “lighter ends” such as kerosene, jet fuel and other higher value hydrocarbon-based products.
For additional information please visit: www.cavitationtechnologies.com
About Cavitation Technologies
Cavitation Technologies, Inc. (CTI); (OTC Bulletin Board: CVAT); is a "Green-Tech" company, established in 2006 to become a world leader in the development of new cutting edge technologies for the vegetable oil refining, renewable fuel, petroleum, water treatment, wastewater sanitation, food and beverage, and chemical industries. For additional information please visit: www.cavitationtechnologies.com
Undiscovered Equities is currently offering a complimentary trial subscription.
To view our newsletter on a complimentary trial basis and take advantage of our other services go to www.undiscoveredequities.com and join our email list on our home page.
Sincerely,
Kevin McKnight
1-800-404-8982
Undiscovered Equities, Inc.
101 Plaza Real, Suite 212
Boca Raton, FL 33432
www.undiscoveredequities.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment