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Owning The Water Customer

From: Riggs Eckelberry
Los Angeles, September 8, 2015

Good morning!

The latest on our acquisitions…

Yesterday, our Bill Charneski took off for Texas, where he will be making sure that our acquisition of Progressive Water Treatment wraps up quickly.

Our New York auditors are on site.

We think it’s going very well. We remain on track for the October closing.

We think we have company #2 lined up. But that’s all I can say for now!

What’s up at LAX?

Last week, waiting at LAX Arrivals, I noticed something very interesting:

LAX hotels aren’t running their own hotel shuttles anymore!

Wow… every major hotel around LAX has now outsourced its shuttle business to an outfit called Shuttle Smart:

9.8.15

That is a classic outsourcing story.

So let’s say this happens at airports all over the country. Soon enough, someone is going to buy up all the local Shuttle Smarts!
Then the USA will have one hotel shuttle service company. Think about it.

That’s exactly what’s happening in the water business.

Let’s say you make electronic chips. These days, you don’t want to worry about all the arsenic in your water… too much regulation, and it’s not your core business.

So, you outsource that problem to a service company that does the job much better than you could.

The latest research confirms it: outsourcing is a reality in water treatment.

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Corporations all over the USA are outsourcing their water business to hundreds of local companies. Typically they’re small — local or regional.

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Acquire the water service companies — acquire the water customer!

This simple diagram shows the potential with just ONE corporate customer in four different regions of the USA:

OriginClear Consolidation Diagram

One corporate customer (yellow triangle), serviced by four regional service companies (circles), all potentially divisions of one company: OriginClear.

The promise of the network

Imagine, now, how this multiplies with numerous service companies and hundreds of water customers, all linked up under one national player.

It’s called the “network effect”.

And this is why, dear friend, we plan to aggregate the fragmented water services market, intending at least five acquisitions in the first two years of our three-year plan.

Think about it! Even though we’re acquiring water companies, it’s all about the water customer.

Have a great week…

Riggs and Team

Riggs Eckelberry
President & CEO
OriginClear, Inc. (OOIL)

 

Safe Harbor Statement:

Matters discussed in this release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

 
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