HNRC TO ACQUIRE WATER TREATMENT COMPANY FOR $10 MILLION

Rhea-AI Summary

Houston Natural Resources Corp. (OTC: HNRC) announced plans to acquire a wastewater treatment facility, expected to close in June 2022. The target company, specializing in water well services and drilling, has a historical recurring revenue of 68% and a projected 80%. 2021 revenues were approximately $7.2 million, with estimates of $8.5 million in 2022 and $11 million in 2023. The acquisition includes equipment valued at $13 million, contributing to a $10 million increase in assets. Financing for the transaction will involve cash and securities, with plans to expand wastewater treatment facilities nationwide.

Positive

• Acquisition expected to close in June 2022.
• Recurring customer/service revenue projected to rise to 80%.
• Estimated revenue growth from $7.2 million in 2021 to $11 million in 2023.
• Increased assets by $10 million through the acquisition.
• Financing commitments secured for the transaction.

Negative

• None.

HOUSTON, June 2, 2022 /PRNewswire/ -- Houston Natural Resources Corp. (OTC: HNRC) ("HNR or the Company") announced today that it will be acquiring additional wastewater treatment facilities  to continue to develop a network of wastewater treatment facilities. The transaction is expected to close during the month of June.

The company being acquired is a water well services and drilling company with historical recurring customer/service revenue of 68% and a projected go forward recurring customer/service revenue of 80%.They specialize in municipal, mining, industrial, and agricultural water wells and pump systems and have been in business for 7 years. They are primarily a services and hold contractor licenses in the US Western Region and have a fleet of small and large drilling rigs and support equipment in addition to three Saltwater Disposal Units.

Revenues and EBITDA for 2021 were approximately $7.2 million and $500,000. Revenues and EBITDA for 2022 are estimated to be $8.5 million and $1.0 million. Revenues and EBITDA for 2023 are estimated to be $11 million and $1.5m. The equipment appraised at  $13 million dollars will be part of an increase of $10 million in the company's assets.

The company has received financing commitments for the transaction which will be a combination of cash and securities. The company intends to continue to acquire additional wastewater treatment facilities and technologies to provide for a nationwide network of wastewater treatment plants.  

About Houston Natural Resources Corp

Houston Natural Resources Corp (www.hnrcholdings.com) (OTC:HNRC). The company is a diversified holding company with business operations and investments. The portfolio companies include investments in energy, information technology and healthcare.

FORWARD-LOOKING STATEMENTS:

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.

Contact:
Houston Natural Resources Corp
E-mail: frank@hnrcholdings.com  
Houston Texas USA.
Phone: +1 (757) 707-4563

View original content:https://www.prnewswire.com/news-releases/hnrc-to-acquire-water-treatment-company-for-10-million-301560233.html

SOURCE Houston Natural Resources Corp.

FAQ

What is the purpose of HNRC's acquisition?

HNRC aims to expand its network of wastewater treatment facilities.

When is the acquisition expected to close?

The acquisition is expected to close in June 2022.

What are the financial projections for the acquired company?

Projected revenues are $8.5 million for 2022 and $11 million for 2023.

What percentage of revenue is projected to be recurring?

The projected recurring customer/service revenue is 80%.

How much will the acquisition increase HNRC’s assets?

The acquisition is expected to increase HNRC's assets by $10 million.