SANTA MONICA, Calif., June 28 /PRNewswire-FirstCall/ -- Sionix Corporation (OTC Bulletin Board: SINX) Chairman & CEO James R. Currier and President & CFO David R. Wells today issued the following letter to its shareholders and potential investors. The full text follows:
We are pleased to bring our shareholders up to date about these recent achievements:
- Sionix has received a letter of intent for the purchase of a Mobile Water Treatment System (MWTS) from a poultry operation located in the Midwest. Since management had sub-contracted manufacture of a MWTS prior to receipt of this order, and had begun sourcing components, we expect to begin construction in a matter of days with new sub-contract manufacturers. A Form 8-K was filed announcing this significant event.
- Sionix has received a strategic investment of $500,000 from the owners of this poultry operation. They purchased restricted common stock at $0.06/share and received warrants equal to their equity purchase at an exercise price of $0.17/share. No pricing concessions were offered and none were requested on the MWTS.
- Sionix has retained Thomas C. Leggiere as its Chief Operating Officer. Tom will be responsible for all procurement/sourcing activities; project management/contract administration; field service, including installation, start-up, commissioning, and training; warranty administration; and after sale support. He comes to Sionix with 20 years senior management experience in the water industry, with knowledge and practice complementary to Mark Hayes, our VP/Technical Services.
- Sionix has added two new members to its Board of Directors, Johan A. Perslow and RADM William A. Retz (USN, Ret.). Johan is a Professional Engineer with more than 35 years experience in the water industry and is Chairman of Pacific Advanced Civil Engineering, Inc. (PACE) and Chairman/CEO of Perc Water Corporation, both strategic partners of Sionix. Bill is a retired Naval Flag Officer with more than 32 years of military service and has served as both an operating officer and board member of several public and private enterprises since his retirement. We have accepted the resignation of John Pavia from our Board. John was with the company for over 3 years and has our gratitude and appreciation.
- Our Board of Directors has voted that the warrants granted to management through our employment agreements be re-set from $0.15/share to $0.06/share reflecting the price of the new financing. We view this as an expression of confidence from our Board and the shareholders they represent as to the success and leadership we have provided in less than ideal circumstances.
- We have retained Paul Knopick at E & E Communications for our Investor Relations activities. Inquiries should be directed to Paul at 949.707.5365 or e-mail at firstname.lastname@example.org.
- We were notified by Tech Precision that due to increases in their business volume, and the realization that building the MWTS was principally an assembly function outside their normal competency, they have asked to be released from our manufacturing agreement. We have accepted their withdrawal. We have already engaged competent replacement sub-contract manufacturers who are already engaged in the fabrication of the MWTS.
After speaking with many of you there are questions that are, or will soon be, on your minds. Let us address some of those questions:
What is the status of the next order?
The first order booked took us about 6 months from the date we assumed operating control of the Company. This has been accomplished with negligible operating capital, without payment of contractual wages, assumption of Company expenses through personal funds, and no dedicated sales resources other than our own time and talents. Now that we have both the referenced investment, and soon a deposit, we believe that the next sale will take less than six months.
How long will it take to fabricate, deliver and install the water treatment unit?
Providing execution of the formal contractual documents, this MWTS can be operational by the end of our fiscal year on September 30, 2010. All long lead time components are already on order with deliveries scheduled well in advance of our fiscal year deadline.
Is this project related to the oil and gas industry?
This MWTS will be treating animal waste as the back end to a comprehensive treatment plant converting waste products to energy that not only powers their own operations but provides inexpensive, renewable energy resources to 850 homes in the nearby community.
James R. Currier
David R. Wells
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Sionix' recent financial results, risks and uncertainties are discussed in its Annual Report on Form 10-K for the fiscal year ended September 30, 2009 and in current reports filed since that date with the Securities and Exchange Commission, all of which are available for review at www.sec.gov.
Contact: Paul Knopick
E & E Communications
SOURCE Sionix Corporation