OTTAWA, May 15, 2019 /CNW/ - Clearford Water Systems Inc.
("Clearford" or the "Company"), (TSXV: CLI), today announced the
closing of its acquisition of the water and wastewater assets of
ASI Group Ltd, an Ontario-based
engineering and marine technology company (the
"Transaction"). The water and wastewater business assets
known as ASI Water have been acquired by the Company's wholly-owned
subsidiary Clearford ASI Inc. Details of the Transaction were
initially announced on May 3,
2019.
The Company financed the transaction by entering into two
secured loan agreements. Clearford Koester Canada Inc., a
subsidiary of the Company, entered into a loan agreement dated
May 6, 2019 with Sustainable Water
Treatment Inc. for the borrowing of USD$2,544,000, which loan bears interest at 9.75%
per annum and will mature on May 15,
2029. The loan is secured by a general security interest
over Clearford Koester Canada Inc.
Clearford Koester Canada Inc. entered into a loan agreement
dated May 6, 2019 with Sustainable
Water Treatment, East Coast, LLC for the borrowing of USD$1,160,000, which loan bears interest at 9.75%
per annum and will mature on May 15,
2029. The loan is secured by a general security interest
over Clearford Koester Canada Inc.
Kevin Loiselle, President &
CEO of Clearford, related the significance of the acquisition to
the Company's utility business model of providing comprehensive
water management services: "The engineering and operations
expertise of the ASI Water team complements Clearford's existing
capabilities and positions the Company as a leading provider of
decentralized and small water system solutions in Ontario. The acquisition increases the size of
the company to over 90 employees operating 170 facilities
Ontario, Clearford now has the
critical mass to deliver the breadth and quality of services
required for long-term water and wastewater utility
operations."
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 is a provider of unified water
management solutions for the design, deployment, financing and
operation of water infrastructure systems. The Company's
technology-based water solutions include
Clearford One® wastewater infrastructure systems,
Clearford M-brane™ packaged treatment solutions, and a full range
of UV Pure® water disinfection products. For more
information, 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 management's 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 factors; 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.
