The technology sector, and specifically, companies focused on product development, are expected to have strong prospects this year as firms continue to be on the lookout to enhance their capital expenditures and increase their productivity.
Cavitation Technologies Inc. (OTCQB:CVAT) falls under that umbrella with the company providing such solutions for a wide range of industries including the food processing sector.
The company hit a major milestone this morning when it announced that it received its first purchase order for the Company’s proprietary Nano Reactor ™ system from Vietnam. Cavitation Technologies received the order through its strategic partner, Desmet Ballestra Group.
The new system will be the first of its kind in the country with the order helping the company in gaining a foothold in the broader Asian market, where demand for such products is on the rise. The company expects the installation to be completed in the third or fourth quarter of this year.
Cavitation Technologies is engaged in the business of developing devices and systems for processing edible oil, fuel production and oil extraction. Its Nano Reactor ™ system offers enhanced performance as well as lower operating expenses. It also claims to reduce the use of chemicals by 90% and improve the shelf life of the product used.
Apart from capturing overseas market, Cavitation Technologies is also working towards boosting its supply chain infrastructure. It recently inked a new deal with CBDual Biotechnology. The agreement involved the use of intellectual property related to the application of technology and process patents to produce high quality pharmaceutical grade cannabis materials.
The collaboration will help the company in diversifying its business operations into the highly lucrative and upcoming cannabis market.
It is further looking to enhance its technological expertise as well.
Cavitation Technologies recently announced that it had successfully completed design and testing for its new CaviTune Super Mixer, based on low pressure cavitation (LPN). The patent for the technology is still pending and will enhance the future prospects for the firm.
Shares of CVAT have been on the upswing since mid-December as shares close in on a 52-week high reached in early January. Things are looking up for the company as it expands into multiple revenues streams while also selling its core technology at a strong pace. Shares are up close to 8% at $0.041 in mid-day trading on the Vietnam announcement.
