Water, besides air, is probably one of the greatest necessities for human survival that we humans take for granted. If back before Ronald Regan was president one would have walked into a business meeting proposing to put water in a bottle and sell it or to even design a way to create it out of the natural humidity in the air, chances are you would have been branded an idiot because its free flowing already in every first world country. Now that the realization is mainstream that what we did to our waters makes it unsafe to pour in a glass and drink, companies like Ambient Water Corp. (OTCQB: AWGI) could be more than just an investment (or not).
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Ambient Water is a development stage company that designs and sells Atmospheric Water Generation products which extracts water from humidity in the air that we breathe and transforms it into an abundant, clean water source near the point of use. The company’s scalable and modular systems are customizable for a number of water-sensitive applications ranging from oil and gas exploration to vertical farming and can even be designed to produce high quality drinking water for homes, offices, and communities.
Sales for the Company are down a bit this year, $13,729 and $44,045 for the three and six months ended June 30 versus $16,489 and $61,583 for the same two periods last year, but Ambient Water is pushing ahead and some traders are taking note of it. The most obvious sign was when they, in June, announced a multimillion dollar, exclusive licensing agreement with Pacific AirWell Inc. for sales of its commercial atmospheric water generation technology and AWGI shares spiked upwards of 120% on $171,251 in volume (4,131,500 shares traded).
The two trading sessions whereby volume spiked in comparison to the rest of the year, were obviously connected to that announcement. What’s puzzling though is how AWGI shares experienced a nearly 200% run in July without much more than showcasing their atmospheric water generation technology at the California State Capitol building which was followed with a press conference about the product’s capabilities.
Earlier this morning, Ambient Water announced that, through its subsidiary, signed a non-binding Memorandum of Understanding with Penida Capital Advisors Ltd., an Indonesian corp., for exclusive rights to manufacture and sell their AW2500 within the 10-member economies of ASEAN (Association of Southeast Asian Nations). If ever there were targeted regions of the world that could see significant improvements to their water supplied for human consumption, those in S.E. Asia, Indonesia, Philippines, Vietnam, Thailand, Malaysia, Singapore, Brunei, Cambodia, Laos, and Myanmar, would be superior targets.
Technically speaking, there were 145,776,948 shares of AWGI issued and outstanding as of July 31 and, per the 10K filing, 61,161,596 were owned by management. At present, the shares are trading just slightly below the 50 Day (0.043) and the 20 Day (0.041), but are almost in line with the 200 Day (0.032). Considering how there have been ample opportunities to score under 0.02, a patient approach could be worth waiting for.
In any case, AWGI is the first of many to have issued any sort of press after the long three day weekend which allows for them a chance to be atop the boards for the moment. While the news today may not be earth shattering, especially since the MoU specifically states the deal is non-binding, updates could produce the short-term catalyst that helped spike the stock back in July and could easily see above 0.05 from it.
Find out more about AWGI shares here: $AWGI
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