Patent-Rich Micro-Cap Lands Acquisition LOI, Shares Soar on News

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Wednesday, April 1, 2026

A strong patent portfolio is a significant asset when evaluating a company. It not only provides legal protection for innovation, allowing businesses to maintain market exclusivity and potentially command higher pricing, but also serves as a defensive tool in infringement disputes. In addition, patents are valuable business assets that can attract investors and enhance overall company valuation.

Today, one micro-cap company demonstrated that value by announcing it has signed a Letter of Intent for an all-cash acquisition, at a valuation well above its recent trading price. Unsurprisingly, the stock is surging on the news.

Cavitation Technologies, Inc. (OTCQB: CVAT) announced that it has received and countersigned a Letter of Intent (LOI) from European Guarantee Services S.à.r.l., a Luxembourg-based firm representing a group of high-net-worth investors and strategic partners, to acquire 100% of the company and its partially owned affiliates, Alchemy Beverages Inc. and XYRA Corp. The proposed all-cash transaction values the company at approximately $40–$42 million, or about $0.13 per share on a fully diluted basis, subject to due diligence and the negotiation of a definitive agreement.

Under the terms of the LOI, the buyer must provide proof of funds within 10 days or the agreement will automatically expire. The deal also includes a 60-day exclusivity period preventing the company from pursuing other acquisition offers, and the LOI remains valid until August 1, 2026, unless extended or terminated earlier. Management indicated that it will carefully evaluate the proposal, including obtaining a fairness opinion, while continuing to act in the best interests of shareholders.

“After weeks of working closely with the EGS team, I’m pleased to share that we’ve received the LOI,” said Neil Voloshin, Chief Executive Officer of Cavitation Technologies, Inc. “Our Board of Directors has approved the Letter of Intent, and we’ll now take the necessary steps to evaluate the offer, including obtaining a fairness opinion as part of our responsibility to our shareholders. We believe this proposal reflects the value of our technology and a significant business opportunity moving forward. Meanwhile, we’ll continue to approach this process carefully and in the best interest of our shareholders.”

Shares of CVAT are currently trading at $0.04485, up 77.98% in mid-morning trading.

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