OTTAWA, Sept. 26, 2019 /CNW/ - Clearford Water Systems
Inc. ("Clearford" or the "Company"), (TSXV: CLI), today announced
that it has entered into a new US$500,000 10-year loan agreement with
Sustainable Water Treatment Inc..
The Company announced that it has arranged the US$500,000 10 year term loan through its
subsidiary, Clearford Koester Canada Inc.. The loan bears an
interest rate of 11% with interest payable semi-annually in May and
November of each year. Additionally, the Company has agreed to
provide the lender with a warrant which shall provide the Lender
the option to subscribe for and receive up to 500,000 shares of the
Company. The warrant has a 5 year term and has an exercise price of
$0.20 per share. The funds will
be used for working capital which may include interest payments.
The Company will also pay a 4% set up fee to an unrelated third
party. The completion of the loan and warrants is subject to final
TSX Venture exchange approval. Conditional approval for the loan
and warrant offering was received in advance.
The Company currently has 102,027,729 issued and outstanding
shares, and 158,882,729 on a fully diluted basis. Following the
transaction, the Company will have 102,027,729 issued and
outstanding shares and 159,382,729 on a fully diluted basis. The
fully diluted shareholdings include convertible debentures,
employee stock options and these newly issued warrants.
"We continue to build upon our recent acquisitions and have made
significant progress on delivering our business plan we launched in
2017, as previously announced, to become a full service water
solutions company", says Kevin
Loiselle, President and CEO of the Company. "While we
continue to seek efficiencies through integration of our most
recent acquisition, Clearford ASI Inc. completed in May, we have
begun to see positive outcomes from the doubling of our presence in
the Ontario market. We now
operate over 170 water and wastewater treatment plants in
Ontario, and since June of the
current year have added 7 new long-term contracts for treatment
plants. Additionally, we signed a significant design build
contract for a 130 home development in southern Ontario expected to begin construction in 2020
and expect to commence phase two of a New
York state project in the next quarter. The new development
contract will also include a water and wastewater operations
contract which will begin when the development is substantially
complete", he continued. "We continue to work towards building our
long-term revenue base and ultimately being able to report positive
EBITDA in the near future once we have completed the full
integration of our operations and maintenance division" he
concluded.
Additionally, the Company's subsidiary UV Pure has now launched
its 3rd generation UV disinfection products. The new
generation includes a larger unit capable of treating up to 100 US
gallons (378 litres) of water per minute as well as improved
performance and durability through a newly designed package system.
The production models were recently featured and very well received
at the Company's booth at the Weftec tradeshow which was held in
Chicago during the past week. The
stand-alone units, which build upon the Company's
Crossfire® technology are currently available for sale
in EPA validated potable, wastewater, and reuse/rainwater
harvesting models. The certification process for CE marking is
ongoing with full certification for sales in Europe, Japan, Australia, New
Zealand and Israel expected
to be completed by the end of this calendar year. The first and
second generation products will be phased out by the Company over
the next 12 months.
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, finance 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.
Clearford is the winner of the Frost & Sullivan 2017
Enabling Technology Leadership Award for Global Decentralized
Water & Wastewater Treatment. For more information, visit
www.clearford.com.
About Clearford Koester Canada Inc. (a Clearford
subsidiary)
Clearford Koester Canada Inc. is a manufacturer
of packaged water and wastewater treatment systems for municipal,
commercial and industrial applications. The company designs and
builds custom modular and containerized treatment systems that
integrate advanced technologies like membrane filters, ultraviolet
disinfection, and smart instrumentation and control systems for
highly efficient treatment solutions that address any site
constraints and water quality challenges. The company's M-brane™
membrane bioreactor (MBR) treatment plant has been installed at
sites in Ontario and New York State.
About Clearford Waterworks Inc. and Clearford ASI Inc. (
Clearford subsidiaries)
Clearford Waterworks Inc. and
Clearford ASI Inc. are full-service providers of water and
wastewater systems management including in-field operations and
maintenance, emergency operations, regulatory compliance support,
engineering services and technical assistance and troubleshooting,
and asset management services. The company operates over 170
treatment plants, water distribution and wastewater collection
systems in Ontario for small
municipalities, private developments, golf courses, camps and
campgrounds.
About UV Pure Technologies Inc. (a Clearford
subsidiary)
UV Pure Technologies is a manufacturer of
advanced ultraviolet water disinfection systems for residential,
commercial, industrial, public, and municipal applications. The
company's patented Crossfire Technology® is an
innovative water disinfection solution with over 18,000
installations worldwide. UV Pure has earned an Artemis
Top 50 Clean Tech Company award, Going Green Global
Top 200 award, two Frost & Sullivan Best Practices
Awards, and a Canadian Drinking Water Association award for
innovation. For more information, visit www.uvpure.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; 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.
