Cavitation Technologies, Inc. (OTCPK:CVAT) entered into a Letter of Intent to acquire Eagle Ford Silica Sand, LLC on June 15, 2023. The transaction is valued at $20 million. CTi anticipates funding through equity and debt financing.

The transaction is subject (i) CTi's completion and approval of its inspection and review (due diligence) of, among other things, Eagle Ford's business, properties, operations, and financial condition; (ii) the consummation of private financing to fund the Proposed Transaction; and, (iii) the negotiation, execution, and delivery of a mutually acceptable legally enforceable definitive agreement, with the understanding that if such agreement is not finalized and executed by, and the closing of the proposed transaction has not been completed by, September 15, 2023, then the LOI may be terminated by CTi or Eagle Ford for any or no reason and further discussions with respect to the Proposed Transaction may be terminated, as well. It is anticipated that the acquisition of Eagle Ford would immediately be accretive to CTi's earnings and would also immediately provide positive cash flow for the Company.