OTTAWA, Nov. 26, 2014 /CNW/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI),
today provided a strategic update and issued its unaudited
financial results for the 3 and 9 month periods ending September 30, 2014. The statements are presented
in accordance with IFRS (all figures in Canadian dollars unless
otherwise noted).
Clearford introduced to the market in the first half of this
year the Clearford One™ wastewater collection and treatment system.
The first system sale was contracted in the second quarter for
delivery to the Fetherston Mobile Park Association. The third
quarter focused on opportunities for sales to communities in
Ontario, Colombia and India. Clearford One™ is an alternative to
traditional sanitary sewage collection and treatment systems.
Clearford One™ is lower in capital and operating costs and can be
installed in existing communities with minimal disruption of
streets and sidewalks. Initial response to Clearford One™ is
encouraging.
Demand for disinfection of water and waste water is growing both
in developed and developing countries. Ultraviolet treatment is
gaining in market share with growth rate estimated at 14% per year.
During the third quarter Clearford worked with Toronto based U V Pure Technologies (UV Pure)
to assess the opportunities for combining the capacities businesses
and technologies. On November 19th
Clearford announced acquisition of 90% of the shares of UV
Pure.
Clearford believes that acquisition of UV Pure completes the
Clearford One™ system and gives Clearford a highly competitive
offering in water and waste water management.
During the quarter, the Company entered into a short-term
financing arrangement with a Canadian lender in the amount of
$600,000 to fund short-term working
capital commitments. Subsequent to the quarter end the Company
entered into a new 20 year loan facility in the amount of
C$3.25 million as previously
announced and issued 8,666,666 bonus shares to the lender from its
treasury shares.
Kevin Loiselle, President &
CEO of Clearford sees this new funding and the acquisition of UV
Pure as additional key factors in executing Clearford's strategic
plans. "While key financial results were disappointing in the
current quarter as certain of our signed projects have been delayed
into fiscal 2015, the reception of our Clearford OneTM
System, particularly in Ontario,
Colombia and India, continues to be very encouraging. The
addition of UV Pure, which is the last component in our Clearford
OneTM system before wastewater is discharged back into
the environment, is expected to increase the interest in our
products particularly in Ontario
where wastewater discharge regulations are very rigorous", Mr.
Loiselle said.
Revenue for the quarter was $32,469 compared with $678,112 for the same quarter last year and
$86,378 in the prior quarter. The
Company's operating loss before financing costs was $958,593 for the quarter compared with
$751,759 for the same quarter last
year and $977,238 in the prior
quarter. Net financing costs for the quarter were $415,833 compared with $186,597 for the same quarter last year and
$301,167 in the prior quarter,
resulting in a net loss for the quarter of $1,408,158 or $0.02
per share compared with a net loss of $760,082 or $0.01
for the same quarter last year and a net loss of $1,261,533 or $0.02
per share in the prior quarter.
For the nine months ended September 30,
2014, the Company recorded revenue of $417,092 compared to $957,192 for the same period last year. The
Company's operating loss was $2,707,946 compared to $2,212,814 for the same period last year. Net
financing costs during this period were $1,016,272 compared to $442,380 in the same period last year resulting
in a year to date loss of $3,704,705
or $0.05 per share as compared to
$2,655,194 or $0.04 per share in the same period last year.
The Company's financial statements and MD&A are available on
WWW.SEDAR.COM.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About Clearford Water Systems Inc.
Clearford Water
Systems Inc. (TSX-V: CLI) is a provider of unified water management
and sanitation systems based on Clearford One™. Clearford One™ is a
proprietary system comprised of ClearDigest™ smart digester, SBS®
ClearConvey™ small bore sewer, and ClearRecover™. For more
information on Clearford Water Systems, please visit
www.clearford.com.
Forward Looking Statements
This news release contains
certain statements that constitute forward-looking statements as
they relate to the Company and its management.
Forward-looking statements are not historical facts but represent
managements current expectation of future events, and can be
identified by words such as "believe", "expects", "will",
"intends", "plans", "projects", "anticipates", "estimates",
"continues" and similar expressions. Although management
believes that the expectations represented in such forward-looking
statements are reasonable, there can be no assurance that they will
prove to be correct.
By their nature, forward-looking statements include assumptions
and are subject to inherent risks and uncertainties that could
cause actual future results, conditions, actions or events to
differ materially from those in the forward-looking
statements. If and when forward-looking statements are set
out in this news release, Clearford will also set out the material
risk factors or assumptions used to develop the forward-looking
statements. Except as expressly required by applicable securities
law, the Company assumes no obligation to update or revise any
forward looking statements. The future outcomes that relate to
forward-looking statements may be influenced by many factors,
including, but not limited to: industry cyclicality; the ability to
secure third party agreements; successful integration of
Clearford's system with third party technology; competition;
reduction in demand for products; collection from customers;
relationships with suppliers; product liability; intellectual
property; reliance on key personnel; environmental; interest rates;
uninsured and underinsured losses; operating hazards; risks of
future legal proceedings; income tax matters; credit facilities;
availability and terms of financing; distribution of securities;
restrictions on potential growth; effect of market interest rates
on price of securities; and potential dilution.
SOURCE Clearford Water Systems Inc.
