Water Technologies International Inc. (OTC: WTII), a leader in atmospheric water production and design, recently announced plans to expand its product line for specialized and licensed medical marijuana businesses in the United States. With the recent expansion of the industry, there has been increasing demand for clean water and customized cooling/humidity controlled units.
The company’s GR8 Water technology generates between 100 to 4,000 gallons of clean drinkable water per day from the atmosphere. At the same time, a two-stage air filtration package cleans the air and ensures that specified levels of humidity and temperature are provided to optimize conditions. The technology also requires very little maintenance and runs on eco-friendly chemicals.
“The medical and recreational marijuana movement is a fast growing industry that will have many big winners,” said William Scott Tudor, CEO of Water Technologies. “We believe that our proprietary Atmospheric Water Generators, along with new custom products that control humidity and air flow, provide a quality solution for indoor and outdoor agriculture.”
As of 2013, the company remained largely in a development stage with revenues of about $60,000, cash burn of around $227,000, and a market capitalization of about $1.65 million. The company’s move into the medical marijuana industry could significantly boost its revenues given the increasing demand for grow-room operations and the capital influx into the space.
In particular, a key driver of medical marijuana spending has been the inability of marijuana growers and dispensaries to obtain bank accounts. Keeping large amounts of money in cash represents a key business risk, which means that many companies have committed to reinvesting in their growth. These dynamics could prove positive for companies like Water Technologies.
Shares of Water Technologies International Inc. rose 15% in early trading on Wednesday and are trading up about 40% so far this year.
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