Wednesday, 20 July 2011

Insider Buying & First Sale from IWG's Acquisition

International Water-Guard (TSX-V: IWG)
Basic Shares: 38.1 million
Fully Diluted: 45.6million


The ink was barely dry on IWG's contract to buy a U.S. company's product line - instant water heaters for high-end aircraft - when IWG announced its first sale.

The product line purchase was completed less than two weeks ago so it was welcome news to pluck the first fruits so soon.

And to ease the path forward for future sales, IWG president and CEO, David Fox, wrote in the news release that his company is using its aviation industry expertise to gain difficult-to-acquire industry accreditation's that will allow a number of facilities around the world to install the water heaters.

"In any acquisition, despite all of the due diligence, there is always a question of what the reality of the business will look like," Mr. Fox said. We have been seeing a very positive response from our customer base on the news, and now less than two weeks after closing the transaction we are receiving a first purchase order."

To read the full news release, please click here.

Investors might also take note that IWG insiders - including Mr. Fox - have been steadily purchasing company shares.

Since the acquisition was announced, Mr. Fox bought 60 thousand shares, according to Canadian Insider.