CHATSWORTH, Calif., April 08, 2026 (GLOBE NEWSWIRE) -- Cavitation Technologies, Inc. ("CTi" or the "Company") (OTCQB: CVAT), a leading provider of advanced fluid processing and water treatment technologies, today announced that it has received documentary proof of funds from European Guarantee Services S.à.r.l. ("EGS") in connection with the previously disclosed Letter of Intent ("LOI") for a proposed all-cash acquisition of the Company.
$45M Funding Confirmed
As previously announced on April 1, 2026, the LOI outlined a proposed acquisition of 100% of the Company's issued and outstanding shares, along with its affiliates, at a valuation of approximately $40-$42 million. The delivery of proof of funds was a binding condition under the LOI.
CTi confirms that EGS has demonstrated access to capital in the amount of $45 million, fully covering the proposed transaction value. The documentation also indicates the potential for additional financing capacity, subject to structuring and approvals.
"The receipt of proof of funds is an important step forward for us," said Neil Voloshin, Chief Executive Officer of Cavitation Technologies, Inc. "It gives us confidence in the financial backing of the proposal as we continue moving forward towards the execution of the proposed deal, keeping in mind the best interest of our shareholders."
This transaction will involve obtaining a fairness opinion to further define the value of the Company, as well as moving toward required shareholder and regulatory approvals.
With these steps underway, CTi management will be traveling to Switzerland from April 13-18 to meet with EGS in person as both sides move forward with the next phase of the acquisition.
About Cavitation Technologies, Inc.
Cavitation Technologies, Inc. (OTCQB: CVAT) designs and manufactures innovative nanotechnology systems for a wide range of industrial and environmental applications. With over 40 patents worldwide, the Company's proprietary technologies are utilized in industrial water treatment, oil and gas produced-water remediation, renewable fuels, and digital asset infrastructure. For more information, please visit www.cvatinfo.com
About European Guarantee Services S.à.r.l.
European Guarantee Services S.à.r.l. (Luxembourg Business Registers RA000432; Entity ID B275874) is a Luxembourg-based firm organized as a société à responsabilité limitée. EGS acts on behalf of a select group of high-net-worth individuals, family offices, and strategic capital partners to facilitate strategic investments globally.
Forward-Looking Statements - Safe Harbor Notice
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These forward-looking statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties, and assumptions that could cause actual results to differ materially, including: (i) the risk that the LOI may not lead to the execution of a definitive transaction agreement; (ii) the failure to satisfy any of the conditions to the proposed transaction, including receipt of required regulatory, CFIUS, or shareholder approvals; (iii) the inability of EGS to demonstrate adequate proof of funds by April 9, 2026; (iv) the risk that due diligence investigations may reveal information that causes either party to abandon the proposed transaction; (v) the risk that a fairness opinion cannot be obtained on acceptable terms; (vi) changes in economic conditions, financial markets, or the competitive landscape; and (vii) other risks and uncertainties described in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the U.S. Securities and Exchange Commission, available at www.sec.gov. The Company undertakes no obligation to update any forward-looking statements, except as required by applicable law.
Additional Information and Where to Find It
In connection with the proposed transaction, CVAT will be required to file a proxy statement and other relevant materials with the SEC. SHAREHOLDERS OF CVAT ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain copies of any documents filed with the SEC free of charge at the SEC's website at www.sec.gov. Copies of documents filed with the SEC will also be available free of charge on the Company's website at www.cvatinfo.com.
No Offer or Solicitation
This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Investor & Media Contact
Cavitation Technologies, Inc.
10019 Canoga Ave., Chatsworth, CA 91311 USA
Phone: 818-718-0905
Email: oksana@ctinanotech.com
Website: www.cvatinfo.com
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