Cavitation Technologies, Inc. Receives Letter of Intent from European Guarantee Services S.à.r.l. in-all Cash Acquisition
MWN-AI** Summary
Cavitation Technologies, Inc. (OTCQB: CVAT) has received a Letter of Intent (LOI) from European Guarantee Services S.à.r.l. (EGS) for a potential all-cash acquisition of the company and its affiliates, Alchemy Beverages Inc. and XYRA Corp. The proposal involves purchasing 100% of the outstanding shares of CTi for a valuation between $40 million and $42 million, approximately translating into $0.13 per share on a fully diluted basis. The LOI was signed on March 30, 2026, by Dr. Kassem Lahham, EGS's Executive Director, and was subsequently approved by CTi's Board of Directors.
The agreement is contingent upon several conditions, including a satisfactory due diligence assessment by EGS that will scrutinize CTi's intellectual property assets, completion of a definitive agreement, and the acquisition of a fairness opinion from an independent advisor. Additionally, the deal requires shareholder approval under Nevada law and regulatory clearances from U.S. authorities, including the Committee on Foreign Investment in the United States (CFIUS).
EGS has committed to providing proof of funds within ten calendar days; failure to do so will cause the LOI to lapse. The agreement also stipulates a 60-day exclusivity period during which CTi is restricted from negotiating with other prospective buyers.
CTi’s CEO, Neil Voloshin, expressed confidence in the proposal, reflecting the company's valuable technology and growth potential. The firm, recognized for its innovative nanotechnology and water treatment solutions, will keep shareholders updated on developments regarding the transaction. The LOI represents a pivotal step towards a significant potential shift for CTi as it seeks to advance in its market.
MWN-AI** Analysis
Cavitation Technologies, Inc. (OTCQB: CVAT) is currently at a pivotal moment following its receipt of a Letter of Intent (LOI) from European Guarantee Services S.à.r.l. to acquire all outstanding shares of the company, including its affiliates, for an all-cash offer in the range of $40–$42 million. This represents a valuation of approximately $0.13 per share on a fully diluted basis, which may present a lucrative opportunity for investors.
However, it is essential to approach this announcement with caution. The deal is contingent upon several conditions, including successful due diligence by EGS, which will involve a comprehensive review of CTi’s valuable intellectual property portfolio, and the negotiation of a definitive agreement. The completion of the acquisition also requires obtaining independent fairness opinions and shareholder approvals, adding layers of complexity and potential delays.
Investors should note that while the offer indicates a recognition of the company's value, it doesn't guarantee a final agreement. The binding 60-day exclusivity period means CTi cannot entertain competing bids, which could either stabilize the share price or restrict potential upside if another firm expresses interest.
From a long-term perspective, CTi's technology has significant applications in industrial and environmental sectors, which might appeal to strategic partners beyond EGS. As the tech landscape evolves, investors should stay tuned for updates on due diligence outcomes and any changes in the deal's status.
In summary, while the LOI signifies a positive development for CTi, investors must weigh the risks of uncertainty and potential regulatory hurdles against the advantages of a cash acquisition. It is advisable to monitor developments closely, and consider the overall market environment and CTi’s operational fundamentals before making investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CHATSWORTH, Calif., April 01, 2026 (GLOBE NEWSWIRE) -- Cavitation Technologies, Inc. ("CTi" or the "Company") (OTCQB: CVAT), a leading provider of advanced fluid processing and water treatment technologies, today announced that on March 30, 2026, it received a Letter of Intent (“LOI”) from European Guarantee Services S.à.r.l. (“EGS”), a Luxembourg-based firm acting on behalf of a select group of high-net-worth individuals, family offices, and strategic capital partners, for the acquisition of all issued and outstanding shares of the Company and its partially-owned affiliates, Alchemy Beverages Inc. and XYRA Corp. The Company’s Board of Directors approved a resolution to countersign the LOI on March 30, 2026.
$40–$42M All-Cash Offer
The LOI, dated March 30, 2026, was submitted by Dr. Kassem Lahham, Executive Director of EGS. Under the terms of the LOI, EGS proposes to acquire 100% of all issued and outstanding shares of CVAT and its affiliates in an all-cash transaction. The LOI defines a strategic valuation for CVAT in the range of $40–$42 million, which translates to an approximate price of $0.13 per share on a fully diluted basis. This valuation is subject to due diligence and the negotiation of certain terms and conditions, which will be incorporated in a definitive transaction agreement.
The proposed transaction is subject to several conditions, including: (i) the satisfactory completion of due diligence by EGS, which will include a thorough review of the Company's intellectual property, including all patents, copyrights, and licensing agreements; (ii) the negotiation and execution of a definitive transaction agreement; (iii) the Company’s Board of Directors obtaining a fairness opinion from an independent financial advisor to satisfy its fiduciary duty to the shareholders; (iv) the distribution of a proxy statement to the Company shareholders and the receipt of shareholder approval in accordance with Nevada Corporation Law; and (v) clearance by applicable U.S. federal and state regulatory authorities, which may include a review by the Committee on Foreign Investment in the United States (CFIUS).
As a binding condition of the LOI, EGS is required to deliver documentary proof of funds within ten (10) calendar days. Failure by EGS to provide such documentation in a form acceptable to the Company will cause the LOI to automatically lapse and expire. The LOI also includes a binding 60-day exclusivity period, during which the Company has agreed not to solicit or enter into discussions with third parties regarding any competing acquisition proposals. The LOI expires at 5:00 p.m. (Los Angeles time) on August 1, 2026, unless extended by mutual written agreement or terminated earlier in accordance with its terms.
“After weeks of working closely with the EGS team, I’m pleased to share that we’ve received the LOI,” said Neil Voloshin, Chief Executive Officer of Cavitation Technologies, Inc. “Our Board of Directors has approved the Letter of Intent, and we’ll now take the necessary steps to evaluate the offer, including obtaining a fairness opinion as part of our responsibility to our shareholders. We believe this proposal reflects the value of our technology and a significant business opportunity moving forward. Meanwhile, we’ll continue to approach this process carefully and in the best interest of our shareholders.”
The Company is being advised by its legal counsel in connection with the review and evaluation of the LOI. The Company intends to keep its shareholders and the public informed of any material developments with respect to the proposed transaction in accordance with its obligations under applicable U.S. federal securities laws.
About Cavitation Technologies, Inc.
Cavitation Technologies, Inc. (OTCQB: CVAT) designs and manufactures innovative nanotechnology systems for a wide range of industrial and environmental applications. With over 40 patents worldwide, the Company’s proprietary technologies are utilized in industrial water treatment, oil and gas produced-water remediation, renewable fuels, and digital asset infrastructure. For more information, please visit www.cvatinfo.com.
About European Guarantee Services S.à.r.l.
European Guarantee Services S.à.r.l. (Luxembourg Business Registers RA000432; Entity ID B275874) is a Luxembourg-based firm organized as a société à responsabilité limitée. EGS acts on behalf of a select group of high-net-worth individuals, family offices, and strategic capital partners to facilitate strategic investments globally.
Forward-Looking Statements – Safe Harbor Notice
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. These forward-looking statements are based on the Company’s current expectations and beliefs and are subject to a number of risks, uncertainties, and assumptions that could cause actual results to differ materially, including: (i) the risk that the LOI may not lead to the execution of a definitive transaction agreement; (ii) the failure to satisfy any of the conditions to the proposed transaction, including receipt of required regulatory, CFIUS, or shareholder approvals; (iii) the inability of EGS to demonstrate adequate proof of funds by April 9, 2026; (iv) the risk that due diligence investigations may reveal information that causes either party to abandon the proposed transaction; (v) the risk that a fairness opinion cannot be obtained on acceptable terms; (vi) changes in economic conditions, financial markets, or the competitive landscape; and (vii) other risks and uncertainties described in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the U.S. Securities and Exchange Commission, available at www.sec.gov. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.
Additional Information and Where to Find It
In connection with the proposed transaction, CVAT will be required to file a proxy statement and other relevant materials with the SEC. SHAREHOLDERS OF CVAT ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain copies of any documents filed with the SEC free of charge at the SEC?s website at www.sec.gov. Copies of documents filed with the SEC will also be available free of charge on the Company’s website at www.cvatinfo.com.
No Offer or Solicitation
This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Investor & Media Contact
Cavitation Technologies, Inc.
10019 Canoga Ave., Chatsworth, CA 91311 USA
Phone: 818-718-0905
Email: oksana@ctinanotech.com
Website: www.cvatinfo.com
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FAQ**
What are the implications of EGS's LOI for Cavitation Techs Inc CVAT's future growth and strategic direction, particularly in its water treatment and fluid processing technologies?
How will Cavitation Techs Inc CVAT ensure that the due diligence process, as requested by EGS, does not disrupt ongoing operations or stakeholder interests?
What steps is Cavitation Techs Inc CVAT taking to communicate effectively with its shareholders during the transaction process to maintain transparency and trust?
Given the binding nature of the LOI, what strategies will Cavitation Techs Inc CVAT adopt to assess EGS's proof of funds and minimize risks associated with the acquisition proposal?
**MWN-AI FAQ is based on asking OpenAI questions about Cavitation Technologies Inc (OTC: CVAT).
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