A very interesting turn for EVS! Will be doing some reading on PET for comparisons but here's an interesting article from June 2017 that was published just after Mr Zhang was appointed to the Phoslock Board (PET). This could be quite transformational for EVS as Peter points out if executed effectively. 8c does feel like a low ball issue price but it may present some buying opportunities over the next couple of months
Cleaning China's Water
From the article:
A new subsidiary, Phoslock (Beijing) Environment Engineering Technology Company, will add infrastructure, engineering and construction to Phoslock's services in China. Phoslock itself is a proven product, and the company is now adding several new products to its range including zeolite and construction materials that aid water remediation. These will turn Phoslock into an engineering solutions provider that can offer a more complete service for individual projects and broaden the scope of projects it can handle. A new factory soon to open in China will mean Phoslock can greatly increase and better control production of its products.
...BHZQ has about 30 contracts for large water remediation projects in China. The initial project for co-operation is a huge canal network in Beijing that is in serious need of remediation.
The deal with BHZQ can open big doors. BHZQ is 70 per cent owned by Beijing Enterprises Water Group (BEWG), the largest water remediation company in Asia and with a market capitalization of $9 billion on the Hong Kong exchange. So success could lead to more success.
Phoslock has worked hard over many years but found it hard to seriously grow its revenue. The latest moves put it in the best position it has ever been in. Its improving outlook has seen its share price more than double since February and it is now at an eight year high.
