Cavitation Technologies, Inc. (CTi) has announced a significant transaction with Desmet Group, SA and outlined its strategic focus on water treatment opportunities. The move comes as CTi aims to strengthen its financial position and capitalize on emerging markets in water remediation and treatment. In a deal valued at approximately $1.5 million, CTi has assigned ownership of various patents and trademarks related to vegetable oil refining to Desmet Group, SA. The transaction includes $1.1 million in cash and the forgiveness of about $400,000 in advances. Importantly, CTi has retained exclusive licenses to use the technology in water and wastewater processing, as well as in the alcoholic beverage industry.
CTi CEO Neil Voloshin emphasized the strategic nature of the transaction, stating that the deal provides necessary capital for continuous operations and business development while avoiding toxic financing. The company's market valuation had decreased to around $3 million in 2024, limiting its ability to fund operations and pursue new opportunities. With the infusion of capital, CTi is now positioned to focus on its water treatment and remediation technologies. The company has installed a system at a major water remediation company in Texas and is pursuing additional customers in the Permian Basin. CTi's technology offers several advantages, including chemical-free water remediation, rapid integration into existing processes, and compact, energy-efficient systems.
In the agricultural sector, CTi has begun trials of its water treatment system at Hacienda Farms in Canada. The technology aims to increase oxygen levels in water, eliminate algae, and control bacterial growth without using harsh chemicals. This application addresses significant challenges in greenhouse operations, such as algae contamination and high sodium levels in water used for irrigation. CTi is also developing new technologies, including HydroPlasma, which combines cavitation and cold plasma technology for enhanced water treatment efficiency. The company has established partnerships with academic institutions to further develop and test these technologies.
The global market for water treatment solutions presents significant opportunities for CTi. The Canadian water treatment market alone is valued at approximately $2.51 billion, with continued growth expected due to increasing demand for sustainable solutions in agriculture and industrial applications. Additionally, the global cold plasma market, relevant to CTi's HydroPlasma technology, is projected to grow from $1.5 billion in 2021 to $3.1 billion by 2027. While facing challenges as a small technology company, CTi remains committed to pursuing its goals and increasing shareholder value. The company's strategic shift toward water treatment applications and its development of innovative technologies position it to potentially capitalize on the growing demand for sustainable water solutions globally.
