In Partnership With Mexico's 529 Capital, A Leading Real Estate Development Firm From The Baja Peninsula
Expected To Produce Up To An Estimated $40 Million In Recurring Annual Revenue
LOS ANGELES, Dec. 09, 2024 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) ("Crown" or the "Company”), a leading provider of innovative technology infrastructure solutions that benefit communities and the environment, today announced that its Water Solutions division plans to construct and co-own a state-of-the-art reverse osmosis (RO) water treatment plant in Cabo San Lucas, Mexico for the desalination of water collected from its proprietary design slant wells. The new RO plant will be built and owned in partnership with locally based, 529 Capital, a leading real estate development firm in the Baja Peninsula. Together, they will provide a new reliable supply of clean, safe drinking water to the region.
The Baja Peninsula heavily relies on groundwater aquifers as a water source, many of which are over exploited. This creates severe challenges in securing a consistent supply of clean water in a region well known for its growing population and tourism industry. Crown is providing an innovative solution to this critical problem by tapping into an unlimited recharge water source with its proprietary design slant wells. The seawater collected by the slant wells must then undergo purification, which takes place in a RO plant where advanced membrane filtration technology is used to desalinate, removing up to 99 percent of dissolved salts and contaminants.
The proposed RO plant should enable Crown and 529 Capital to provide clean drinking water to a select few of the resorts in Cabo San Lucas through a co-operative partnership over the next 5 years. The co-operative partners will be able to have a reliable water supply, ensuring a sustainable and efficient solution. In addition, Crown and the co-operative plan to impact the broader community by looking for opportunities to donate up to 500,000 gallons of clean drinking water per day to nearby areas in need, fostering a positive and lasting contribution to the region.
Crown's Water Solution division, spearheaded by Corey Boaz, President of Construction, plans to immediately commence an environmental impact study. While 529 Capital will start the process for gathering the necessary permits in Mexico. Construction is expected to start in the summer of 2025 with an anticipated operational date in 2026.
"Building the first of many RO plants is the next step to providing a complete water solution to our slant wells. Cutting-edge technology, combined with energy-efficient designs, makes RO a sustainable and highly effective solution for addressing water scarcity and improving water quality at scale,” said Doug Croxall, CEO and Chairman, Crown. "By combining our innovative infrastructure technologies with 529 Capital's regional expertise, we're not only ensuring reliable access to clean water for the resorts, but also giving back to the local community.”
Mexico's 529 Capital brings over 50 years of proven expertise in development across the Baja Peninsula. Well-known for successfully guiding projects from concept to completion, they specialize in navigating the complexities of building in this region, true to its family office roots.
"We are thrilled to partner with Crown in this important initiative. As a Mexican national, I have personally witnessed and been affected by water scarcity. Mexico's water system faces many challenges and our government is now taking the right and necessary steps towards better policy and infrastructure,” said Victor Morales, Partner at 529 Capital. "This RO plant is more than just a solution for the resorts - it's a transformative project that benefits the entire community, improving supply and making water available for the ones that need it. By establishing programs for donating a significant amount of clean water, we're creating a sustainable future for Los Cabos and supporting the local infrastructure.”
About Crown
Crown (Nasdaq: CRKN) is an innovative infrastructure solutions provider dedicated to benefiting communities and the environment. Comprised of three business divisions, Smart Windows, Fiber Optics, and Water Solutions, Crown is developing and delivering cutting edge solutions that are challenging the status quo and redefining industry standards. For more information, please visit www.crownek.com.
Forward Looking Statements
Certain statements in this news release may be "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995) regarding future events or Crown's future financial performance that involve certain contingencies and uncertainties, including those discussed in Crown's Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent reports Crown files with the U.S. Securities and Exchange Commission from time to time, in the sections entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations” . Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release. This press release does not constitute a public offer of any securities for sale. Any securities offered privately will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
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