Clearford Announces New Contracts, New Long-Term Financing Arrangement and Update on UV Pure Business
Ottawa, Ontario – (September 26, 2019) – Clearford Water Systems Inc. (“Clearford” or the “Company”), (TSX-V: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 packaged 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.
For more information contact:
Kevin Loiselle, President & CEO
Clearford Water Systems Inc.
Phone: (613) 599-6474 ext. 303