Signina Capital and Clearford Water Systems announce $100 million Ontario Municipal Wastewater Project Financing
Ottawa, Ontario – (January 14, 2015) – Clearford Water Systems Inc. (“Clearford” or the “Company”), (TSX-V: CLI), and Signina Capital AG of Zurich, Switzerland (Signina) today announced a $100 million funding agreement (Agreement), pursuant to which Signina has undertaken to arrange for the funding of 100% of the capital costs associated with the installation of the Company’s proprietary all-in-one wastewater collection and treatment system (Clearford One™) to municipalities located in the Province of Ontario (Mandate).
Under the terms of the Agreement, the Mandate will be pursued via a Canadian special purpose corporation (SPC) for each municipality, under the public-private-partnership (PPP) model. Clearford will contract as the exclusive builder and operator on behalf of the SPC for the design, build, operation and maintenance of the Clearford One™ system, on a turnkey basis. The SPC will enter into a 20-30 year (Term) services contract with each of the selected municipalities. At the end of the Term, the SPC will transfer the ownership of the wastewater infrastructure asset to the municipalities, at no additional cost.
The funding of each municipal project is subject to the satisfactory completion of definitive PPP agreements.
Martin Klöck, Chief Investment Officer of Signina, said: “we are very pleased to participate in the rollout of Clearford One™. We have been actively investing in Clearford since 2012, and have developed a high conviction in the company’s management, technology and prospects. We like the fact that Clearford One™ consists of tried and tested systems whilst at the same time representing an efficient and disruptive alternative approach to traditional wastewater collection and treatment systems, with delivery now available in an all-in-one turnkey solution. Clearford One™ can provide a long-lived, performance-driven, cost-efficient wastewater solution to communities worldwide. Clearford’s recent acquisition of UV Pure Technologies Inc. (UV Pure), and the integration of UV Pure’s Crossfire™ technology, completes the Clearford One™ offering by adding the ability to purify both potable water and treated wastewater. We look forward to working with Clearford’s management on realizing the potential of Clearford One™ in Ontario and beyond.”
Kevin Loiselle, President and CEO of Clearford, said: “the funding agreement will offer Ontario communities a cost effective new choice for their wastewater collection and treatment requirements. Clearford One™ delivers lower life cycle cost with reduced environmental footprint. The system can be installed with relative ease, with minimal disturbance to existing streets and sidewalks, and has an estimated useful life of more than 90 years. The services contract will provide for complete sewage services for the duration of a term of up to 30 years, and the municipality will benefit from ownership of the system at the end of the term. Clearford looks forward to introducing Clearford One™ and this funding and operations model to municipalities in Ontario”.
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™ final treatment facility. For more information on Clearford Water Systems, please visit www.clearford.com.
About Signina Capital AG:
Signina Capital AG (Signina) is a Swiss and Liechtenstein based asset management firm specialized in water-related infrastructure. Signina is a partner in USAID’s 2014 Loan Guarantee Program and a member of the UN PRI. For more information on Signina, please visit www.signinacapital.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.
For more information contact:
Kevin Loiselle, President & CEO
Clearford Water Systems Inc.
Phone: (613) 599-6474 ext. 303
Renmark Financial Communications Inc.