In today's shifting economy, accredited investors, especially real estate investors, are looking for assets that can grow faster than inflation. They are learning that water is a stable and high-yield asset class that does especially well in hard times.
Already, a futures market has been launched in California water rights. Going beyond that, the trillion-dollar world water treatment market is being revolutionized by selling water treatment as a service—just like energy or computing!
With water treatment as a service, the customer can easily sign a service agreement and get going. And if they don’t pay, the equipment simply gets returned. This simplifies the whole financing game tremendously.
“This is the hottest business model in the water industry,” says Riggs Eckelberry, the OriginClear CEO. “Aquaventure Holdings pioneered long-term water service contracts, calling them Water-As-A-Service® or WAAS®, and they did so well that Culligan acquired them in March 2020, in a $1.1 billion all-cash transaction. It’s a winning formula.”
The company intends to implement the next generation of this idea with our patented mobile systems, while also scaling up our unique Water as a Career™ program which could help a fleet of independent Waterpreneurs™ finance the systems they sell and service.
To make that work takes capital. And that’s OriginClear Financial.
Subject to regulatory approval, OriginClear intends to launch OriginClear Financial, a wholly-owned subsidiary with the sole purpose of investing in water projects. Investors may contribute cash, or the company may acquire their development companies, with the assets housed in the subsidiary. The company plans to protect all such investments with senior security agreements.
On February 3rd, 2021 OriginClear Inc. announced that it had agreed to acquire its first real estate asset to finance water projects. Ivan Anz, OriginClear advisor and founder of strategic partner Philanthroinvestors® Inc. agreed to personally invest certain real estate assets through an asset purchase agreement.*
Anz will exchange a collection of properties which he has valued at $630,000, in return for a package of stock and warrants, with a future option to invest in a fund which the Company is planning for the development of pre-funded commercial water equipment projects.
On February 25, 2021 the company announced that it had agreed to acquire more real estate assets to finance water projects. Alfredo Guatto, partner in a US-based real estate development company continued discussions with the company to finalize a definitive agreement under which OriginClear intends to acquire the Developer in a stock-for-stock transaction.
If a definitive agreement is made and closed with this Developer, OriginClear intends to launch OriginClear Finance, a wholly-owned subsidiary with the sole purpose of investing in water projects. The Developer’s assets, and potentially others, would be housed in the subsidiary.*
*The next steps will be to finalize valuation, complete the closing process and get the approval of the Board of Directors. The Company cautions there is no guarantee these acquisitions will be completed or that the eventual fund for the development of water projects will be launched.
“Our secret weapon is our line of prefabricated, drop-in-place Modular Water Systems,” says Tom Marchesello, OriginClear COO. “With this technology, we can provide equipment without requiring excessive guarantees or perfect credit, because we can always repossess the equipment if the client fails to pay. We believe this is a key competitive advantage for us.”
At such time as the fund is established, OriginClear Financial will fund Progressive Water Treatment systems, Modular Water Systems and potentially outside water company's systems as well once the model is proven and operating smoothly. This will enable OriginClear to place equipment through rental or leasing programs that we continue to own and operate. This business model is called managed services and in the water industry, referred to as DBOO, Design-Build-Own-Operate.
Water is a risk that smart managers will outsource, especially with worsening inflation as we enter these inflationary times. Outsourcing through what we call Water on Demand™ means that these companies do not have to worry about the problem, either financing it or managing it.
Water on Demand, water outsourcing through managed services is very, very needed. Like an internet service provider develops and manages a company's website. Few companies operate a server in-house powering their website. It's managed by professionals through a service level agreement. In the water industry, when applied to outsourced water treatment these are known as Water Purchase Agreements (WPAs).
Water Purchase Agreements (WPAs) are very similar to the solar energy programs known as Power Purchase Agreements (PPAs).
A business can now outsource its wastewater treatment by simply signing on the dotted line; instantly avoiding most capital expense, and the trouble of managing something that is a distraction from their core business.
This is financially and operationally attractive to industrial, agricultural and commercial water users, while OriginClear can look forward to speeded-up deals and many more revenue streams from providing water treatment as a service.
A Water Philanthroinvestor is an investor who is investing into the water space with philanthropic motivation as the primary factor driving them. He is doing well financially, by doing GOOD for the planet and its people. The term was coined by Philanthroinvestors® Founder, Ivan Anz, and OriginClear historically has some of the world's most loyal and supportive investors, who truly believe in the company and its mission, and invest for the sake of the planet. And of course, we in turn take good care of them.
However, Water Philanthroinvesting also heralded the unification of the powerful Philanthroinvestors® team with OriginClear. In September, 2020 OriginClear announced that Philanthroinvestors had entered a strategic agreement with OriginClear and had listed the company on its new Water Philanthroinvestors program. At the same time OriginClear appointed Philanthroinvestors Founder, Ivan Anz and CEO, Arte Maren to OriginClear's Board of Advisors.
This alliance has since flourished and grown and been instrumental in the development of OriginClear Financial, OriginClear's fund for financing water projects.
The pivotal aspect of philanthroinvesting discovered by Mr. Anz, was that managing money only to make more money does not bring one happiness. His research demonstrated more and more that, when one is only motivated to get money back, they don't achieve a philanthropic fulfillment. Many high net worth individuals in the world are aware of this and operate on the basis of supporting environmentally and socially beneficial causes.
So, we asked some of our Philanthroinvestors to express their views and experience in supporting OriginClear's mission to bring clean water to all people. Here is what they had to say.
Eric Keller: "Environmentally we need to clean up our water. The United States should be #1 in having it as pristine as we can. I mean a lot of people have water in their refrigerators that makes ice. Well, that's got to be clean or else we are going to continue with the health problems that we keep running into. I am also a CPA for the last 40 years, very much in tune with changing economics and one thing right now is with low interest rates and that, what we need to do is get regular cash flow coming back because it's getting very hard to put money at risk for time. I was excited about it when they showed it to me, the fact that you get a regular return of principal and interest on an ongoing basis plus a participation in value growth and an ongoing revenue stream. That allows you the flexibility to start redirecting things and adjusting if there is a new lifestyle or something that needs to be addressed."
Keith: "We started giving to a church that dug wells for people who had no drinking water so when I saw how OriginClear is cleaning water it seemed like the perfect match. My lovely wife Linda here is so tight, she's not going to jump into anything. She looks it over very carefully.
Linda: "I was a little skeptical at first. I had to see everything, you know, really look at the numbers but we really believe in what you guys are doing.
Keith: "It's been consistent, and it's been very lucrative and it's been very fulfilling because we actually feel like we are doing something for the economy."
Bob: "Doing something positive in taking care of the situation in Flint, Michigan, Los Angeles and numerous other places that have had water problems. It is time to do something about it, it's time to really be effective and I'd like to be part of that solution by investing in OriginClear. I've been amazed at what you guys have done in the past and I'm really. really excited about what the future is going to bring because OriginClear is probably one of the most innovative and interesting companies that I have ever been involved with and I think the sky's the limit for the future. And, it's a way to make money in this time of uncertainty with the markets going up and going down and everything else. You guys have been steady for the last 2 years with regular payments so I'm betting on the future and I think it's going to be great."
When surveyed and asked for the three top reasons they became a water philantroinvestor when learning about OriginClear and saw it as a worthy concept, and to prioritize the level of importance top investors answered:
A. Clean water is the most fundamental element needed for human survival.
B. They liked to invest in philanthropic programs where people benefit.
C. Good return for the investor with the option to convert to stock.
Personal gain or profit was their lowest priority. Our Water Philanthroinvestors are great-hearted people. We believe they are a powerful force that is helping shape the future of water treatment and the availability of clean water for all people.