Clearford announces new 20 year long-term debt facility
Ottawa, Ontario – (October 1, 2013) – Clearford Industries Inc. (“Clearford” or the “Company”, TSXV: CLI) today announced that it has closed a new 20 year $5.44 million CDN term loan with Mundaun Financial Design AG of Switzerland (the “Lender”). Clearford will receive $3.2 million CDN on closing with an additional $2.24 million CDN available as required.
“This long term loan reflects the growing confidence in the business of Clearford. The financing will provide an excellent basis for Clearford to move forward with its business plan, which continues to include the option of providing project financing to customers in regions where demonstration sites will result in opening new markets for our SBSTM Solution. During the last 18 months Clearford has built strong engineering and project implementation capabilities, including projects in Cayunda, Colombia, and Positano, Peru. Phase I of these contracts is nearing completion, with both Cayunda and Positano positioned to be operational within the next 3-6 months”, commented Clearford President and CEO Kevin Loiselle.
Mr. Loiselle added that “Clearford is already benefiting from additional project opportunities in international markets which are expected to be significant contributors to Clearford’s growth and cash flow from operations through 2014”.
The loan bears interest at a fixed rate of 11% per year. In connection with the loan, Clearford has granted 16,210,000 non-transferrable warrants entitling the Lender to purchase one treasury common share of Clearford for each warrant, at a price of $0.15 per share, until five years from the closing date. As previously announced, shareholder approval was received at the Company’s Annual General Meeting, allowing the Company to issue warrants, which, if exercised, would exceed 20% of the issued and outstanding shares of the Company. Common shares of Clearford issued by exercise of the warrants will be subject to a hold period until four months and one day from the closing date of the loan and warrant transaction.
Clearford will pay a 10% fee to an arm’s length third party as amounts are advanced.
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 Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is the developer of the patented Small Bore Sewer ™ (SBS™) based solution, which enables the efficient collection and treatment of sewage. Its superior operational and environmental performance is achieved at a significantly lower operational cost when compared to historic gravity sewers. Clearford’s SBS™ technology and industry expertise provide the enabling platform to deliver on a global basis, a turnkey, wastewater collection and treatment solution that is ideally suited for; water-scarce regions, communities with unreliable water distribution networks, and new developments seeking a greener approach to full water and wastewater management. For more information on Clearford, 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.
For more information contact:
Clearford Industries Inc.
Phone: (613) 762-8402