Water Ways Technologies Inc. (TSXV:WWT) (“Water Ways” or the “Company”) reports its financial and business results and is pleased to provide highlights and comments on the results for the three months ended September 30, 2019. The Company’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”).

Ohad Haber, President, CEO and Chairman of the Board of Water Ways, commented: “The Company continues our development plan and expansion upon our listing on the TSX-V in March 2019. We continue to increase our global footprint in the cannabis industry with the launch of CANNAWAYS with the intention of positioning Water Ways as a key technology provider to cannabis cultivators around the world. We have now received the third order for the system which proves the acceptance in the market.” Mr. Haber continued: “We have started to build our presence in the North American farming community and irrigation market after establishing our Heartnut grove subsidiary in Ontario. I am happy to inform that we in the middle of the process establishment of our new Chinese subsidiary in China. As a result of our strategy, we have received a substantial order that and have a very positive outlook for 2020. Mr. Haber continued: “While our revenue was slightly higher, compared to the same period in 2018, our project and acquisition pipeline continues to expand, and I am especially pleased with the substantial increase in sales of our product division. We look forward to providing more exciting updates as the Company continues to expand its global footprint.”

Financial Highlights for the third quarter ended September 30, 20191

The following are financial highlights of Water Ways’ operating results for the three months ended September 30, 2019, compared to the three months ended September 30, 2018:

  • Revenue was C$4.11 million as compared to C$3.86 million.
    • The recognized revenues from service projects amounted to C$1.82 million for the three months ended September 30, 2019 as compared to C$2.09 million for the three months ended September 30, 2018. The decrease was mainly due to the shift in revenue recognition of a number of projects from H1 2019 to the subsequent quarters in 2019 and the first quarters of 2020. In addition, the Company is currently in the process of finalization a number of irrigation projects in China, Colombia, Israel and other countries. The Company estimates that the total value of the irrigation projects will exceed C$5.5 million. With the development of operations and opening a subsidiary in China, the Company is generating more projects and expects additional projects to be received in H1 of 2020.
    • The revenues from sales of products amounted to C$2.23 million for the three months ended September 30, 2019, compared with C$1.77 million for the three months ended September 30, 2018. The 25% increase in product sales was mainly due to the increase in sales orders from Peru, Philippine and other countries in Eastern Europe through the Company’s distributer in Israel.
    • Revenue changes by geographic segments:

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    • Major customers over 10% of the Company’s revenues:

water ways customers

  • Cost of revenue was C$3.62 million as compared to C$3.37 million.
    • Cost of revenues in service projects decreased to $C1.59 million for the 3 months period ended September 30, 2019 from $C1.81 million for the 3 months period ended September 30, 2018. The decrease was due to the associated decreased revenues of service projects over the period.
    • Cost of revenues in the product sales increased to $C2.03 million for the 3 months period ended September 30, 2019 from $C1.55 million for the 3 months period ended September 30, 2018. The increase was due to the associated increased revenue of products over the period.
  • Gross Profit was C$0.49 million as compared to C$0.5 million.
    • Gross profit in service projects decreased to $C0.23 million for the 3 months period ended September 30, 2019 from $C0.28 million for the 3 months period ended September 30, 2018. The change in the gross profit margin is due to low profit service projects.
    • Gross profit in the product sales segment increased to $C0.26 million for the 3 months period ended September 30, 2019 from $C0.21 million for the 3 months period ended September 30, 2018.The increase was mainly due to an increase in revenue.
  • Selling, general and administrative expenses was C$0.84 million as compared to C$0.34 million.

The increase in selling, general and administrative expenses in 2019 was mainly as a result of increase in wages during 2019, legal expenses, fees paid in relation to stock exchange announcement and participation in cannabis trade shows.

  • Listing expenses

The Company allocated the incremental costs that were directly attributable to issuing new shares to equity (net of any income tax benefit) and the costs that were related to the stock market listing or are otherwise not incremental and directly attributable to issuing new shares, were recorded as an expense in the statement of comprehensive income. Costs that were related to both share issuance and listing were allocated between those shares based on the number of shares.

The following is a summary of key balance sheet items as of September 30, 2019, compared to December 31, 2018:

Cash and cash equivalents were C$0.74 million as compared to C$0.32 million;

  • Current assets of C$9.90 million as compared to C$7.80 million;
  • Total assets of C$11.23 million as compared to C$8.36 million;
  • Current liabilities of C$7.58 million as compared to C$4.47 million;
  • Non-current liabilities of C$0.3 million as compared to C$0.38 million.

Business Highlights for the third quarter ended September 30, 2019 and Subsequent events:

a) Cannabis Sectors Expansion


In July 2019, the Company announced the launch of CANNAWAYS, an Internet of Things controlled irrigation and fertilization system for cannabis cultivators and growers, which is one of the first systems in the world that is designed specifically for cannabis growers and cultivators. The CANNAWAYS system was developed in Israel and had been successfully tested on one cannabis cultivation site.

The company is pleased to report that it had delivered one system to a major project involving a Canadian Licensed Producer (“LP”) in Israel and has received two additional orders for the system from Israeli LP’s to new medical Cannabis cultivating facilities in Israel. The total value of the two orders is C$ 0.58 million and the Company expects delivery in H1 of 2020.


Following the successful implementation of a Cannabis project in Israel, the Company has put a substantial amount of effort to penetrate the Canadian cannabis and hemp cultivation markets. Through its recent established subsidiary, Heartnut Grove WWT Inc.(“Heartnut”), the Company intends to penetrate the market by establishing ongoing distribution relationships with buyers of irrigation and cultivation equipment throughout the country. Heartnut sales in the three month ended September 30, 2019, were $C0.279 million.

Europe and Latin America

The Company is currently in negotiations to deliver turnkey irrigation solutions to cannabis and hemp cultivators in several European and Latin American countries and in Israel. The Company has entered an understanding with a veteran of the cannabis growing business and a former Chief Executive Officer of one of the first LP’s in South America to singlesource commercial cannabis and CBD Hemp cultivation solutions including dehumidification, lighting technologies, irrigation, fertigation and benching.

The Company has signed Memorandum of Understanding (the “MOU”) with a Colombian company, Emerald Bud Corp. (“Emerald”), to assist in the development, supply, installation, and technical support in connection with a project of approximately 43,580 square meters (approximately 10.6 Acres) of greenhouse area, for the production of medical Cannabis in the municipality of San Gil, department of Santander, Colombia. The MOU is subject to certain conditions including: Emerald obtaining the licenses and permits required for the development of the Project; Emerald obtaining the required financing to complete the Project; and Emerald and the Company entering into a definitive agreement confirming the economic terms of the Project. The Company expects the definitive agreement to be signed by the parties by the end of Q2 of 2020 resulting in a material effect on its 2020 and 2021 results.

Israel – Medical Cannabis

The Company gained experience through its delivery of an irrigation, fertigation and Internet of Things control system to an Israeli subsidiary of Cronos Group Inc., which is a greenhouse cultivation project located at Kibbutz Gan Shmuel, approximately 50km north of Tel Aviv. The Company has received two orders for delivering Irrigation and fertigation systems that includes the CANNAWAYS system to two Israeli LP’s. The company expects to deliver the systems in Q1 of 2020. The projects are valued at C$0.59 million.

b) Business Development


The Company is in the process of establishing a new distribution subsidiary for the growing Chinese irrigation market together with its former Chinese agent. The entity under construction is already in the process of receiving a new C$3.05 million irrigation project.

Central Asia – Uzbekistan

In July 2019, the Company completed its first irrigation project in Uzbekistan, which valued approximately C$0.48 million and was recognized in the second quarter of 2019. The project irrigates via drip irrigation technology servicing a field of 160 hectares of cotton and includes a 20 km reservoir for sedimentation. The irrigation solution has been fully delivered to the client after a completion of the quality assurance inspection, and the operation of the system will start in the third quarter of 2019 with agronomic and technical assistance from the Company. Water Ways believes that drip irrigation for cotton will be part of the Uzbekistan government’s national plan for water and soil conservation.

The Company has received a second order of its second irrigation project which valued approximately C$0.48 million. The company expects to deliver the systems in Q1 of 2020.

East Africa – Ethiopia

On July 25, 2019, the Company announced that it has signed two new irrigation projects in the Federal Democratic Republic of Ethiopia. The first project consists of the installation of advanced irrigation technology assembled at a 3,000 hectare sugar cane field and the supply of various components, such as valves and fittings for sprinkler systems. The value of this project is approximately $C0.56 million. The Company is currently delayed until the customer will be able to open a letter of credit to secure the project.

The second project consists of the upgrade of an existing 25-hectare herb greenhouse, valued at approximately $C0.18 which will focus on redesigning and remaking the farm’s head control system, including pumps, filters, controllers, fertigation units, valves, pipes, fittings and accessories. The project was finalized during the third quarter and revenue recognized was $C0.18 million.

South America

On August 22, 2019, the Company that it has received a purchase order, from one of South America’s leading flower growers, to deliver more than 30 high tech water treatment solutions. The purchase order is valued at approximately $C1.3 million. First systems are expected to be delivered in Q4 of 2019 and the balance over the course of a few months. The water treatment systems are comprised of high-tech filtration systems based on self-cleaning filters and physical separation technologies to eliminate the existence of unique worms (Plant Parasite Nematodes) in irrigation water that originates from rivers. The WWT water treatment systems replace the need for chlorine, which was previously used by the flower grower to exterminate the worms, allowing the flower grower to use a clean and chemical free process reducing the cost and potential pollution to the soil. The system was tested by the client for over a year in field tests and once fully accepted WWT received the full order for over 30 systems. During the third quarter the company recognized revenue of $C0.06 million.

  • Appointment of Market Maker: On October 11, 2019, the Company engaged the services of Questrade, a member of the Investment Industry Regulatory Organization of Canada (“IIROC”) and the Canadian Investor Protection Fund (“CIPF”), to provide services as a market maker for an initial term of three months.
  • Engagement of Investor Relations Firm: Effective October 21, 2019, the Company engaged the services of Boardmarker Group (“Boardmarker”), an investor relations and consulting firm based out of Calgary, Alberta, Canada. Boardmarker Group is owned and operated by Mr. Dean Stuart, and has provided investor relations and consulting services to public and private entities since 1999. Boardmarker will be assisted by Mr. S. Mark Francis, a Calgary based individual with over 25 years capital markets experience and is currently employed on a part-time basis with the Canadian Securities Exchange. Under the terms of this engagement Boardmarker is subject to a three-month probation period and will be compensated $3,500 per month. The engagement of Boardmarker is subject to TSX Venture Exchange approval.

Water Ways Technologies Financial Results Summary

The following tables set forth consolidated statements of financial information of Irri-Al-Tal Ltd. (“Irri-Al-Tal”) and Heartnut Grove WWT Inc., wholly owned subsidiaries of the Company, since the reverse-takeover transaction between Irri-Al-Tal and the Company has occurred during the first quarter ended March 31, 2019.

A comprehensive discussion of Water Ways’ financial position and results of operations is provided in the Company’s Management Discussion & Analysis (“MD&A”) for the three and nine months ended September 30, 2019 filed on SEDAR and can be found at www.sedar.com.

water ways summary 1

water ways summary 2

About Water Ways Technologies

Water Ways is the parent company of Irri-Al-Tal Ltd. (“IAT”) which is an Israeli based agriculture technology company that specializes in providing water irrigation solutions to agricultural producers. IAT competes in the global irrigation water systems market with a focus on developing solutions with commercial applications in the micro and precision irrigation segments of the overall market. At present, IAT’s main revenue streams are derived from the following business units: (i) Projects Business Unit; and (ii) Component and Equipment Sales Unit. IAT was founded in 2003 by Mr. Ohad Haber with a view of capitalizing on the opportunities presented by micro and smart irrigation, while also making a positive mark on society by making these technologies more widely available, especially in developing markets such as Africa and Latin America. IAT’s past projects include vineyards, water reservoirs, fish farms, fresh produce cooling rooms and more, in over 15 countries.

For more information, please contact

Dean Stuart
Boardmarker Group
T: 403 617 7609
E: dean@boardmarker.net

Ronnie Jaegermann
T: +972-54-4202054
E: ronnie@waterwt.com


Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions as they relate to Water Ways. All statements other than statements of historical fact may be forward-looking information. Such statements reflect Water Ways’ current views and intentions with respect to future events, and current information available to Water Ways, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. Should any factor affect Water Ways in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, Water Ways does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and Water Ways undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. Water Ways’ results and forward-looking information and calculations may be affected by fluctuations in exchange rates. All figures are in Canadian dollars unless otherwise indicated.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

1 Israeli New Shekel is Water Ways’ functional and reporting currencies. USD and CAD equivalent figures hereto are presented using ILS/USD and ILS/CAD quarterly exchange rates of 2019 of 3.5886 and 2.7 respectively and of 2018 of 3.5583 and 2.7638 respectively for income statement items, where applicable; and the September 30, 2019 ILS/USD and ILS/CAD exchange rates of 3.482 and 2.6267 respectively, and December 31, 2018 ILS/USD and ILS/CAD exchange rates of 3.748 and 2.7517 respectively for balance sheet items, where applicable.

Click here to connect with Water Ways Technologies (TSXV:WWT) for an Investor Presentation.


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The Australian cannabis market has been maturing since medical marijuana was federally legalised in 2016.

The next year, Food Standards Australia New Zealand legalised low-THC hemp food for human consumption in Australia. The country went on to legalise medical marijuana exports in 2018, allowing medicinal marijuana products developed in Australia to be exported to licenced recipients in countries where the drug is legal.

Recreational cannabis remains federally illegal in the country, but recent legislation shows the door may be opening. In 2019, the Australian Capital Territory passed a bill allowing for the possession and growth of small amounts of cannabis for personal use. The law went into effect on January 31, 2020.

More recently, in late 2020, the Therapeutic Goods Administration greenlit the sale of low-dose cannabidiol (CBD) through over-the-counter methods without a prescription. The ruling from the Australian regulatory agency is expected to officially come into effect in February 2021.

With these and other changes in the works, Australia’s cannabis industry is projected to have long-term potential. The legal cannabis market in Oceania is expected to be worth US$1.55 billion by 2024, with Australia accounting for 79 percent of the region’s market, Prohibition Partners forecasts.

According to a study from FreshLeaf Analytics, the value of the medical market in Australia reached AU$95 million in 2020, and the firm expects revenue to jump again to over AU$150 million in 2021. In short, Australia’s role in the global cannabis industry will certainly continue to grow.

Here the Investing News Network profiles 10 ASX cannabis stocks with market caps between AU$30 million and AU$225 million. All ASX cannabis stocks below are listed in order of market capitalization from largest to smallest, with data compiled using TradingView’s stock screener on January 12, 2021.

1. Creso Pharma (ASX:CPH)

Market cap: AU$209.83 million

Creso Pharma was the first company to import medical cannabis into Australia and the first to launch these products in Switzerland for people, as well as animals. The cannabis company’s anibidiol product was the first hemp CBD complementary feed in animal health thanks to a partnership with Virbac Switzerland. Creso Pharma has also launched cannaQIX in Switzerland; it was the first CBD nutraceutical in human health.

The company’s medicinal cannabis product lines cover therapeutics, nutraceuticals, animal health, lifestyle and topicals.

2. Cann Group (ASX:CAN)

Market cap: AU$176.84 million

Cann Group provides a range of medicinal cannabis products for patients in Australia and globally. In 2017, the company was granted Australia’s first cannabis research licence, as well as the first medicinal marijuana cultivation licence. Cann Group partners with leading medical scientists in Australia to research and harness the therapeutic potential of cannabinoids, terpenes and other bioactive constituents of cannabis.

The company has secured supply agreements in global cannabis markets, including the UK, Germany and other European segments.

3. Incannex Healthcare (ASX:IHL)

Market cap: AU$166.42 million

Incannex Healthcare is a clinical-stage cannabinoid medicine company with global export capacity. It has four clinical programs underway for the development of a variety of cannabis medicinal products aimed at major unmet medical needs, including obstructive sleep apnea, traumatic brain injury/concussion, sepsis-associated acute respiratory distress syndrome and temporomandibular joint disorder.

In 2020, the company worked to advance its clinical trials. By the second half of the year, cannabinoid products accounted for Incannex’s entire revenue stream.

4. Botanix Pharmaceuticals (ASX:BOT)

Market cap: AU$131.37 million

Botanix Pharmaceuticals has a product pipeline that includes three advanced clinical programs using synthetic cannabidiol for the topical treatment of serious skin diseases and for antimicrobial applications. The company also has an exclusive licence to use a proprietary drug-delivery system called Permetrex for direct skin delivery of pharmaceuticals.

Botanix Pharmaceuticals’ programs are focused on treating acne, rosacea, atopic dermatitis and microbial infection. The company secured a clear development path for its BTX 1801 synthetic cannabidiol antimicrobial product after the successful completion of a pre-investigational new drug meeting with the US Food and Drug Administration.

5. Althea Group Holdings (ASX:AGH)

Market cap: AU$114.2 million

Althea Group Holdings takes the concept of medical cannabis a step further with its work as a pharmaceutical-grade cannabis supplier. In addition to offering relief through accessible medical cannabis, the company is implementing components of the plant in its research on advanced drugs.

Althea has successfully expanded into the global cannabis market with a wholesale supply agreement to import a range of Althea-branded finished products for sale and distribution in South Africa beginning in Q2 2021. This agreement came on the heels of the news that the company is slated to become the first commercial supplier of Australian medicinal cannabis extract products to the German market, with all necessary licences for sale and distribution granted by the German government.

6. Zelira Therapeutics (ASX:ZLD)

Market cap: AU$113.79 million

Zelira Therapeutics’ efforts are on unmet clinical needs and on using medicinal cannabis to treat a range of diseases and disorders. Its most common target areas include pain, anxiety and sleep.

Zelira is largely focused on developing treatment options using plant-based medicinal marijuana, and currently has three clinical-stage programs with a focus on insomnia, autism and opioid reduction. The company is also conducting a pre-clinical research program to test cannabinoids in breast, brain and pancreatic cancer.

7. Medlab Clinical (ASX:MDC)

Market cap: AU$75.51 million

Medlab Clinical is a medical research and development company focused on novel biotherapeutics such as nutraceuticals and pharmaceuticals. The company is also developing pharmaceutical cannabis products.

In early 2020, Medlab Clinical launched the NanaBis Observation Study in Australia. NanaBis is a cannabis-based pain treatment drug that may prove useful as an alternative to opioid medication. It is also being used to investigate cancer pain management.

8. BOD Australia (ASX:BDA)

Market cap: AU$49.25 million

BOD Australia is focused on cannabis and hemp-related products. It develops, distributes and markets health and skincare products created using plant-based extracts in Australia. The company secured a foothold in the European cannabis market in 2020 with a AU$200,000 purchase order for four Swiss-branded hemp seed oil products to be sold in France, the Netherlands and the UK.

BOD Australia’s reach in Australia ranges from selling prescription and over-the-counter products to more than 1,000 outlets, such as pharmacies, retail stores and healthcare chains. It also has distribution agreements with two pharmacy wholesalers in Australia.

9. IDT Australia (ASX:IDT)

Market cap: AU$42.47 million

One of Australia’s oldest listed life science companies, IDT Australia is a pharmaceutical manufacturing company with extensive experience in the development and production of pharmaceutical products. Through its GMP-compliant facilities, the company provides full-scale services for new drug development, plus scale-up and commercial active drug manufacturing for local and international clients.

IDT Australia’s clients include Cann Group; IDT Australia is the manufacturer of the medical cannabis products that are a part of two of Cann Group’s export supply agreements with European and UK partners.

10. MMJ Group Holdings (ASX:MMJ)

Market cap: AU$31.04 million

MMJ Group Holdings has a wide range of cannabis investments, including healthcare products, technology, infrastructure, logistics, processing, cultivation, equipment, retail and research and development.

Among other companies, it has invested in Harvest One Cannabis (TSXV:HVT,OTCQB:HRVOF), which develops health and wellness products; Fire & Flower Holdings (TSXV:FAF,OTCQX:FFLWF), a recreational cannabis retailer that’s developed a variety of cannabis products and accessories; and MediPharm Labs (TSXV:LABS,OTQQX:MEDIF), a cannabis extraction company that received its cannabis oil production licence from Health Canada in 2018. MediPharm Labs has launched cannabis extraction services in Australia.

Investor takeaway

The presence of these ASX-listed cannabis companies shows that the cannabis industry in Australia is undoubtedly growing, as are investment opportunities in Australia’s cannabis industry. While recreational marijuana remains illegal in the land down under, the medical cannabis industry is thriving, making that side of the sector worth considering.

So far, Australia has no timeline attached to the legality of recreational use of marijuana, but it will be a story to watch over the coming years for those interested in the space.

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