Clearford Announces Intention to Extend Convertible Debenture and Execution of Forbearance Agreement
Ottawa, Ontario – (August 8, 2017) – Clearford Water Systems Inc. (“Clearford” or the “Company”), (TSX-V: CLI), a TSX Venture 50 Company, today announced that it has entered into a forbearance agreement with its convertible debenture holders with the intention to extend the term and amend certain conditions of the convertible debenture.
The convertible debenture matured on August 5, 2017. The forbearance agreement runs from August 5, 2017 until October 2, 2017 which will allow the parties to prepare and execute the necessary documents and receive the necessary approvals from the TSX venture exchange to amend the existing terms and conditions of the convertible debenture.
The Company and its lenders intend to extend the maturity date of the convertible debenture for 3 additional years to August 5, 2020 and reduce the conversion price from the current $0.55 to $0.20 to reflect the current trading value of the Company. The transaction will be treated as a replacement of the existing debenture under TSX Venture policies and is subject to filing and approvals by the TSX-V.
“We appreciate the continued support of our debenture holders as we pursue the acquisitions that will drive our new business model and will position Clearford as an operator and manufacturer of water and wastewater infrastructure” said Kevin Loiselle, President & CEO of Clearford.
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, ClearConvey® small bore sewer, and ClearRecover® final treatment facility. 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 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