It's official. Red-hot Cardinal Resources (CDNL) has secured some big-time funding, not to mention cemented an outstanding sales partner in place. More important to current and prospective CDNL shareholders, the stock has already perked up in the wake of several recent announcements from the company. It's today's news, however, that may well catapult a well-primed CDNL. The press release in its entirety appears below. I'll sum it up for you here though - Cardinal Resources is garnering $7.5 million in exchange for 51% of the company. The investor is Chinese outfit Hangzhou Sky Valley Water Technology Co., Ltd. If you've been following the CDNL saga at all, it's a name that should ring a bell. Hangzhou was the company that signed a letter of intent to become a major shareholder back on October 13th. It's also the company that purchased one of Cardinal Resources' Red Bird water-purification systems back on November 23rd... adding it was already looking to purchase two more systems. And why not? Since it owns the majority of the company anyway, why wouldn't it buy its own goods? I think there's a much bigger message packed into Hangzhou deal though...it's a huge indication of the potential of the Red Bird System technology. Let me ask you this quick question: Is it riskier to simply buy a product from a supplier as needed, or to outright acquire a supplier? There's more risk in ownership, of course. As a customer, you can simply stop buying the product whenever you want. As an owner, your hitching your wagon to the future of a product line... a future that relies on sales to other customers besides yourself. That fact that Hangzhou just plunked down $7.5 million to PAY MORE PER SHARE THAN THE MARKET PRICE OF CDNL RIGHT NOW speaks volumes about the potential that Hangzhou Sky Valley Water Technology Co. sees in Cardinal Resources' Red Bird Systems. A premium price for a stock rather than a discounted price for an institutional buyer isn't something you see too often. And well Hangzhou should. As a reminder, though the company makes a couple of different-sized systems to meet different needs, Red Bird Systems are all about the size of a concession stand. One of them is designed to be mobile, capable of being towed by a small truck. Depending on the equipment in question, one system can clean anywhere from 50,000 liters to more than 200,000 liters per day (between 10 and 40 gallons per minute), which is enough to serve communities of between 5000 and 20,000 people, respectively. Better still, these systems require no infrastructure , no nasty chemicals, and no constant changing of filters; the only filter to speak of on a Red Bird system needs to be replaced once every five years. At a price of anywhere between $125,000 and $270,000 per system (mostly depending on its size and capacity), the equipment is also affordable, given what it does. And China is a perfect market for such technology. The U.S. Dept. of Commerce has said water-purification in China is a $29 billion market. There were a couple of other seemingly minor compelling details in the press release as well... details like the fact that Hangzhou Sky Valley Water Technology Co. is going to do its best to help Cameroon's CAMWATER secure the funding it needs to push that deal further along. Remember, the CAMWATER agreement is worth up to $28 million. The Panama thing is still happening too. You may recall Cardinal Resources got the first Red Bird System up and running there last month to use as a demonstration unit. The wheels for the purchase of three more Red Bird systems were put into motion shortly thereafter. All told, Panama could end up buying Red Bird systems at a pace of four per month well into 2017. That's another multi-million dollar opportunity. There was another easy-to-overlook detail wedged into the press release as well I thought was very interesting - Hangzhou is interested in turning up the heat on the investor relations front. That alone could catapult the stock now, and later. Anyway, you get the idea. We're talking about an across-the-board expansion of everything the company is, and does, and a marketing partner that's put a lot of faith and money into the technology. We have to take the hint. The sweetest part of the story, though, is how well the stock's been acting since mid-November when Cardinal Resources got Panama's first Red Bird system up and running. You could almost tell the country's water authorities were ready to write a check for several more units that day. CDNL became a very real company that very day, and the stock hasn't looked back. In fact, I've got a feeling today's news could create a tidal wave of buying interest which carries shares above the ceiling at $0.06. Past that point, there's very little from a technical perspective to hold the stock back. Take a look to see what I mean. As of yesterday CDNL has pushed its way above the 200-day moving average line (green) for a third time in a month. The bulls aren't going away. If you look closely you'll also see a couple of other moving average lines have become support, and could serve as a springboard past $0.06. It's about as good of a trading setup (a few days of consolidation while the bulls build up some steam) as anyone can ask for. Only time will really tell how big today's news could be for the stock, but I'm pretty confident this is going to be something interested buyers will want to step into sooner than later. There's just a stunning amount of good news working in CDNL's favor now. Here's the full press release. Cardinal Resources Inks $7.5 Million Equity Financing With Chinese Firm; Company to Enter Asian Distribution JV With Global Support PITTSBURGH, PA--(Marketwired - Dec 17, 2015) - Cardinal Resources Inc. (OTC PINK: CDNL), a global producer of patented, solar powered, community-scale drinking water systems, today announced it has signed a definitive agreement with Hangzhou Sky Valley Water Technology Co., Ltd. ("HSVW") for a $7.5 million equity investment and the establishment of an China Distribution Joint Venture. On October 13, the Company announced it had signed a non-binding LOI for this transaction. HSVW is a China-based consortium formed to market and commercialize Cardinal Resources' water treatment technologies in Asia and other international markets. Composed of two publicly-traded Asian conglomerates, HSVW has extensive investment holdings in numerous sectors including industrial, high tech, engineering, logistics, energy, banking, engineering and municipal infrastructure. Under the terms of the transaction, HSVW will invest a total of $7.5 million in exchange for a 51% stake in the Company. The investment will consist of two tranches of $3.75 million each in exchange for newly issued shares of the Company's unregistered common stock. The first tranche will be a purchase of 36 million shares of the Company's unregistered common stock at $0.104 per share and is expected to close early in the first quarter of 2016, subject to routine Chinese regulatory approval of foreign capital investments of this nature. Planned use of proceeds will include: Retirement of all outstanding trade debt Establishment of the China joint venture A corporate stock buyback program An investor relations program Restructuring Cardinal's Bayelsa and Cameroon open contracts and purchase orders (valued at $38M), for which HSVW will work with the Company to facilitate international bank financing General working capital The second $3.75 million tranche is to be released to Cardinal upon successful completion of the following milestones, which are expected to be completed during the second quarter of 2016: Establishment of the China Joint Venture, including operating agreement and funding Re-alignment of the Company's management and governance structure, key hires and appointments to the Board of Directors Successful manufacturing of two Cardinal Community Red Bird ("CRB") water systems by the China Joint Venture. U.S. manufacturing will continue to serve key global markets. Cardinal last month announced that it completed the sale of the first of three such systems to HSVW The transfer to the China Joint Venture of Cardinal's manufacturing rights and obligations under its agreement with Bayelsa, Nigeria Using Cardinal's commercially reasonable best efforts to cause its financing and manufacturing rights and obligations under its agreement with CAMWATER (Cameroon Water Utilities Corporation) to be transferred to the China JV Proceeds from the second tranche are anticipated to cover: Consolidation of all Cardinal HQ, R&D, manufacturing and warehousing facilities Filing additional patents to increase intellectual property portfolio value Aggressively expand marketing in various regions globally, including funding of demonstration CRBs to be purveyed to regional distributors Establish new leasing and purchase-financing programs to support sales worldwide Working capital "We're excited about the opportunity Cardinal's patented, state-of-art community water systems provide, validated with solid traction in Africa, Latin America and now Asia," commented Mr. Li Jie Shan, HSVW's CEO. "Through the marriage of Cardinal's Red Bird technology with HSVW's extensive financial and global marketing resources, we are confident our joint venture can propel Cardinal to an industry leadership position worldwide." "The HSVW transaction is a transformational milestone for Cardinal Resources, which enables us to take the Company to a new level of financial and operational strength," said Cardinal Resources CEO, Kevin Jones. "As a growing company, our primary goal has been to find ways to better compete in the worldwide marketplace pursuing multi-million dollar contracts in large target markets. We are excited to now be able to leverage the resources and expertise that HSVW brings, together with its enviable position as a successful developer and marketer of important industrial technologies throughout Asia and elsewhere. "Most importantly," Mr. Jones added, "This transaction was carefully conceived to be a win-win scenario for Cardinal Resources' shareholders and HSVW. I am thrilled that 2016 is setting up to be the year that Cardinal Resources transitions from an early stage company to a high growth, high-tech industrial company with a respected brand and true global footprint." The United Nations reports as of June, 2015, 381 million people in China lack access to piped, treated water, and the US Dept. of Commerce ITA estimated the total addressable market in China for this sector at $29 billion in 2010. Details of the transaction announced today are included in the Company's filing this week of its report to the SEC on Form 8-K. About Hangzhou Sky Valley Water Technology Co., Ltd. Hangzhou Sky Valley Water Technology Co., Ltd. is composed of two principal companies. The first has major equity interests in telecom, environment, alternative energy, high-tech new materials, industrial parks as well as port logistics, infrastructure and fund management. Its holding company is a Hong Kong "A-Shares" public company. The second company operates a diversified portfolio of subsidiaries in real estate development; development and manufacturing of high-tech products; engineering design, construction and development of energy, transportation, telecommunication and other basic municipal infrastructures as well as active investments in banking, venture capital and private equity. It was approved by the Chinese Ministry of Foreign Economy and Trade and Ministry of Technology as an export base of high-tech products in a national high-tech industrial development zone. Its holding company is Shanghai Stock Exchange listed (SH-180 Index) and reported total assets of approximately US$3 billion. About Cardinal Resources Cardinal Resources brings a unique blend of experience, technology, and focus to projects worldwide and across the United States from its office in the Pittsburgh, Pennsylvania area. Its commitment to Clean Water, Clean Environment, Worldwide includes the patented Red Bird System, a solar-powered community-sized drinking water system, and the Grey Bird Approach to wastewater treatment and green infrastructure as well as a deep range of traditional environmental and engineering services. For more info, visit us at www.cardinalres.com. Cardinal Resources Safe Harbor Statement Certain statements contained in this press release and in other public statements by the Company and Company officers include or may contain certain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words "anticipate," "believe," "estimate," "will," "may," "future," "plan," "intend" and "expect" and similar expressions generally identify forward-looking statements. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Although we believe that our plans, intentions and expectations reflected in the forward-looking statements are reasonable, we cannot be sure that they will be achieved. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: our history of losses and limited revenue; our ability to raise additional capital; our ability to protect our intellectual property; changes in business conditions and partner relationships; changes in our sales strategy and product development plans; changes in the marketplace; continued services of our executive management team; security breaches; competition with companies in the water technology industry; market acceptance of water technology products generally and our products under development; delays in the development of products and statements of assumption underlying any of the foregoing, as well as other factors set forth under the caption "Risk Factors" in our 2014 Annual Report on Form 10-K filed with the S.E.C. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Except as required by law, we undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Contact Information Company Contact: Kevin Jones CEO 412-374-0989