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Consolidated Water Co. Ltd. (CWCO) Expanding Presence in Water Reclamation Industry

Consolidated Water Co. Ltd. (NASDAQ: CWCO) develops and operates seawater reverse osmosis desalination plants and water distribution systems in areas of the world where naturally occurring supplies of potable water are scarce or nonexistent – including the Cayman Islands, Belize, the British Virgin Islands, the Bahamas and Bali, Indonesia. Since first introducing its water production and distribution business model in 1990, the company has primarily utilized an acquisition-based growth strategy to vastly expand its market share. As a result, CWCO currently supplies water to a variety of customers ranging from residences and hotels to government-owned utility providers through the operation of 14 desalination plants of various capacities.

In recent months, CWCO has made considerable progress toward promoting sustainable financial growth. In the second quarter of 2015, the company recorded total revenues of approximately $14.5 million on its way to realizing a gross profit of just under $6 million. CWCO also successfully extended its 1.6 million gallon per day (MGD) operating contract with the Water Authority – Cayman for two additional years, effectively lengthening its exclusive water utility franchise, and secured a rehabilitation and upgrade project for the 14 year-old plant on Grand Cayman Island. This progress, combined with the company’s strong balance sheet, should provide an opportunity for CWCO to continue building on its recent performance moving forward.

Among other expansion opportunities, CWCO is currently awaiting a decision on its recent proposal to build and operate a 100 MGD seawater desalination facility in Rosarito, Mexico. The company met with the official committee established by the State of Baja, California, during the second quarter of this year to further evaluate its submitted proposal and answer related questions. While awaiting the committee’s decision, CWCO has worked toward refining its technical and financial models and obtaining required municipal and state-level permits for the project.

For prospective shareholders, CWCO’s recent financial performance makes it an intriguing investment opportunity moving forward. Look for the company to continue promoting financial growth through its current portfolio of desalination plants and water distribution systems while making progress toward capitalizing on viable expansion opportunities.

For more information, visit www.cwco.com

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