RDX Technologies (TSX: V.RDX, Stock Forum) expanded its US market share when the company announced today that it had executed a contract for the purchase and operation of RDX franchise locations in Ohio, southern Michigan and northern Kentucky.
According to the news release, the US$19.92 million deal was signed with Pontus Energy LLC, of Cincinnati, Ohio for 16 RDX franchises to be located within Ohio, Monroe County Michigan and the counties of: Boone, Kenton, Campbell, Gallatin, Grant and Pendleton in the State of Kentucky.
The agreement outlined that Pontus would install, open and place into operation all of the locations by March 31, 2015. Pontus has already identified and committed to property locations and will be developing other locations concurrently during this fiscal year.
Filing of franchise paperwork with the State of Ohio is expected by no later than September 5, 2014.
Brian Donnellan, President of Pontus stated, "The RDX business and franchise model is working, and growing. The list of customers that RDX has and continues to build upon is impressive. It is an opportunity that we have worked hard to be a part of, and we look forward to our future with RDX.”
He went on to illustrate, “Pontus now has a platform to offer disruptive interceptor and waste water treatment and a path to profit from energy sales - a unique business combination in two high growth opportunities. During our presale period, from June until today, we have pre-sale commitments from over 225 customer locations in our reserved territory."
Company CEO, Dennis M. Danzik, added, “The RDX team welcomes Brian Donnellan and the Pontus organization to RDX. It has been both exciting and a great pleasure to work with Brian and his team over the past year. Pontus brings substantial restaurant and food service business experience to the RDX franchise opportunity as well as the right mindset and attitude necessary for a startup operation.”
Then he concluded, “Pontus has been instrumental in helping RDX build the franchise business model, proforma budgets, and marketing identity, as well as assisting in the design of our new service truck fleet. The Pontus team is educated, talented and highly motivated.”
RDX Technologies was in the news recently when the Scottsdale Arizona-based company reported fiscal 2014 financial results at the end of July.
Shares gained 35.56% on the news to $0.305 per share.
Currently there are 173.8m outstanding shares with a market cap of $53.0 million.