Ambient Water Corp (OTCBB:AWGI) has announced the signing of a multi-million dollar deal for a licensing agreement with Pacific AirWell. The agreement grants Pacific AirWell to sell commercial atmospheric water generation products from Ambient Water, in California. The form 8-K has been filled to the SEC in this regard. Further encouragement to the investors was gained from Wende Mike opening a new position in the company. The new position entitles Wende Mike to 5.68% of AWGI shares.
Ambient Water is the manufacturer of water generation systems that extracts water from humidity in the air. The new agreement with Pacific AirWell allows the latter to use, sell and market the formers proprietary water extraction products. Additionally, the agreement extends to both current and future products and is bound to the state of California, with royalty requirements.
Initially, Pacific AirWells will purchase $1 million worth of Ambient’s products, with 20% of all royalties being sent to Ambient Water on every unit sold. In the following year, AirWells will double its purchase to $2 million and increase the royalties to 25% on every unit sold. Additionally, the agreement also state that there would be no licensing fee and the agreement would hold true as long as minimum sales are met.
The CEO of Ambient Water, Keith White, stated that this is a step forward towards generating cash flow and broadening the company’s distribution channels. He also pointed out that California is an ideal market for the systems, where water scarcity continues to worsen. Generating water from air is the most efficient way of dealing with the state’s water crisis. The system has already proved to be efficient and is in use in several industries like oil & gas and agriculture, among others. Ambient Water hopes that the system would be purchased by the government, farmers and even residents.
Ambient Water Corp (OTCBB:AWGI) recorded a tremendous rise of 80.32% on May 4, after trading 141.38 million shares during the session to close at $0.0449.