SOURCE: Cardinal Resources Inc.

Cardinal Resources Inc.

October 13, 2015 06:00 ET

Cardinal Resources Signs LOI With Chinese Firm for Major Equity Investment, Asian Distribution JV and Global Support

PITTSBURGH, PA--(Marketwired - October 13, 2015) - Cardinal Resources Inc. (OTC PINK: CDNL), a global producer of patented, solar powered, community-scale drinking water systems, today announced it has signed a non-binding Letter of Intent with an Asian consortium for an equity investment and an Asian Distribution Joint Venture.

The China-based consortium is being formed to market and commercialize Cardinal Resources' water treatment technologies in Asia and other international markets.

The investment, if closed, will consist of two tranches which combined would total between $6-12 million for a 51% stake in the Company in exchange for newly issued shares of the Company's restricted common stock. Cardinal Resources has not yet entered into a contract for the offer and sale of shares and any transaction is conditioned upon and subject to the parties agreeing on definitive contracts to complete the prospective transaction and customary closing conditions.

The first tranche is expected to close in the fourth quarter of 2015. Proceeds from the transaction will be designated toward general working capital, retiring the Company's existing debt, and establishing the new joint venture. Closing of the first tranche is subject to due diligence and customary closing conditions. The second tranche is slated to close in Q1 of 2016, subject to certain benchmarks being met including satisfactory establishment of the JV.

Commenting on the proposed transaction, Cardinal Resources CEO, Kevin Jones, said, "In addition to the positive impact for our shareholders and the opportunity to strengthen our balance sheet, we are very excited to enhance the Company's ability to access Export Credit Agency financing for large overseas contracts including those pending in Africa and Latin America as well as the potential for expansion into a number of major developing and mature markets."

"We are pleased to be in discussions with this group of Chinese investors and industrialist in furtherance of commercializing Cardinal's technology broadly in the Asian marketplace," Mr. Jones added. "Throughout 2015, Cardinal has gained a significant increase in the flow of business and sales opportunities through our evolving relationship with this diversified consortium."

The United Nations reports as of June, 2015, 381 million people in China lack access to piped, treated water, and the US Dept. of Commerce ITA estimated the total addressable market in China for this sector at $29 billion in 2010.

About Cardinal Resources

Cardinal Resources brings a unique blend of experience, technology, and focus to projects worldwide and across the United States from its office in the Pittsburgh, Pennsylvania area. Its commitment to "Clean Water, Clean Environment, Worldwide" includes the patented Red Bird System, a solar-powered community-sized drinking water system, and the Grey Bird Approach to wastewater treatment and green infrastructure as well as a wide range of traditional environmental and engineering services. For more info, visit: www.cardinalres.com.

Forward-Looking Statements

Certain statements in this presentation constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, such as our ability to obtain financing to continue our operations; reliance on third parties for parties and equipment to produce our products; unexpected design and engineering problems related to our products; business and political conditions in the geographic areas in which we sell our products;; outcomes of government reviews; continued compliance with government regulations; legislative or regulatory environments; requirements or changes adversely affecting the businesses in which we are engaged and jurisdictions in which we market and sell our products.

The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this presentation and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations. Information on the company's website does not constitute a part of this release.

Contact Information

  • Company Contact:
    Kevin Jones
    412-374-0989