StockGuru News: Sionix Corporation Launches New Asset Controlling Partnership Program to Fund Operating Assets and Support Recurring Revenue Model

LOS ANGELES, CA–(Marketwire – Mar 7, 2012) – Sionix Corporation (OTCBB: SINX) (“Sionix” or the “Company”), a designer of patented water treatment systems, announced today its Asset Controlling Partnership Program (“ACP”). The purpose of this structure is to create a project-based vehicle for investing in, managing and operating a specific Mobile Water Treatment System (“MWTS”) for a specific long term project or application. Under the ACP Program, Sionix provides and operates an MWTS, and partners with investors (which may include customers or other interested parties) to fund its operations. The Company expects the ACP Program to be implemented initially in the non-conventional shale plays where reclamation and recycling of drilling, flowback and produced water from O&G drilling and hydraulic fracturing operations have faced both regulatory and environmental challenges.

By modifying its business model to provide water treatment services rather than insist that cost-conscious customers make a large up-front investment, the operation and maintenance of Sionix MWTS equipment onsite by Sionix personnel becomes a recurring revenue source that was previously unavailable from equipment sales alone. To the extent that investor interest in a tangible asset generating cash flow and revenue sharing opportunities arise, the Company believes financing the fabrication and assembly of MWTS products will spur the deployment of Sionix products and services to not only the O&G industry, but to other vertical markets as well.

The ACP Program is anticipated to greatly reduce the need for dilutive financing that the Company has utilized in the past. “We are committed to creating and unlocking shareholder value,” stated President and CFO David R. Wells. “This program greatly reduces our immediate capital expenditure needs and provides us with long term cash flow that will fund Sionix operations. This ability to self-fund future expansion is essential to scale in the industry,” stated CEO James Currier. “We believe that numerous operators in the shale fields are starting to adapt the ‘reuse and recycling’ practice instead of the traditional deep well injection disposal method. Sionix is uniquely positioned to enjoy an early mover advantage with its recent announcement of plans to deploy its MWTS in the Williston Basin.”

Currier further stated, “As development of shale resources transition from the recovery of natural gas deposits in the Marcellus Shale to the oil-bearing formations in the western states, regulatory and environmental oversight of current disposal methods of water contaminated by O&G operations and drawdowns of fresh water resources will hamper energy recovery in these rich shale deposits. The onsite treatment, recovery and recycling of these precious water resources we believe could be mandated by local, state and national regulatory authorities.” As a reference point, on January 23, 2012, and effective April 1, 2012, the Industrial Commission of the State of North Dakota has approved and implemented new rules and amendments to their “General Rules and Regulations for the Conservation of Crude Oil and Natural Gas” that will significantly impact the treatment and reclamation of contaminated water resources, among other activities that pose environmental concerns.

Currier continued, “Selling the service instead of the equipment minimizes installation and training costs associated with equipment sales, and places management and operation of MWTS products squarely in the hands of our people who best know the product and technology. This ultimately reduces implementation and operating risk, and better serves the customer.”

About Sionix Corporation
Sionix designs innovative and advanced MWTS intended for use in energy, government facilities, healthcare facilities, emergency water supplies during natural disasters, housing development projects, and various industrial processes including subterranean fracturing used in oil and gas drilling. These systems can be located adjacent to contaminated water sites or as a pre-treatment for reverse osmosis and other membrane applications. Industries involved in dairy, agribusiness, meat processing, mining, poultry operations, and many others can benefit from Sionix’ cost-effective, easily maintained, portable water treatment systems. For more information about the company, go to www.sionix.com.

About Sionix Technology
Using a patented dissolved air flotation (DAF) technology packaged in a mobile shipping container, air bubbles between the size of 1 and 2 microns are injected and float organic contaminants to the surface where 99.95% are skimmed off, and a majority of inorganic contaminants are also captured and removed. This compares to standard DAF units which historically have been limited to using bubble sizes of 50 microns or larger. The size of these bubbles is important because the smaller the bubble, the greater the surface tension. They can then hold together longer and elevate more organic contaminants to the surface for removal.

Forward-Looking Statements
All statements in this press release that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include, but are not limited to, whether Sionix Corporation can raise capital as and when it needs to, whether the water purification systems will generate significant sales, whether it can compete successfully in its market and industry, and other factors beyond the control of Sionix Corporation, including those detailed from time to time in the reports filed with the Securities and Exchange Commission. Sionix Corporation assumes no obligation and does not intend to update these forward-looking statements.

 

 Contact Information

Company Contact:
Melissa Pagen
Director, Sales and Marketing
T: 704-971-8409
mpagen@sionix.com

Investor Relations Contact:
Nuwa Group
Kevin Fickle
T: 925-330-8315
kevin@nuwagroup.com

 

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