Clearford Water Systems Secures Renewal of $100 Million Funding Commitment for Municipal Wastewater Projects in the Province of Ontario
Ottawa, February 23, 2016 – Clearford Water Systems Inc. (“Clearford” or the “Company”), (TSX-V: CLI), a provider of unified water management and sanitation systems, today announced that it has entered into an amending agreement (the “Agreement”) with Signina Capital AG (“Signina”), an investment firm specialized in water-related infrastructure, pursuant to which the previously announced funding commitment (see January 14, 2015, press release) was renewed for an additional two-year period.
Under the terms of the Agreement, Signina has undertaken to arrange for the funding of 100% of the capital costs associated with the installation of Clearford One™, the Company’s proprietary all-in-one wastewater collection and treatment system, in municipalities located in the Province of Ontario under the Company’s Pay-for-Performance (“P4P™”) delivery model. The funding will be committed via a Canadian special purpose corporation formed and capitalized with respect of each municipal client, subject to and in accordance with the completion of definitive project agreements.
Since the launch of the P4P™ program in mid-2015, the Company has developed an active Clearford One™ project pipeline with a total capital value of approximately $40 million. Additional expressions of interest indicate demand well in excess of the initial $100 million funding commitment, in line with the Company’s previously announced projections (see June 18, 2015, press release). The additional period of funding availability under the Agreement will accommodate municipal approval processes.
“We are pleased to report another milestone in the transition of the Company into growth”, said Kevin Loiselle, President and CEO of Clearford. “Coincident with the commissioning of Clearford One™ in Fetherston, Clearford is able to offer municipal clients and developers a wastewater collection and treatment solution which is not only cheaper to build and operate, but also bankable from a funding standpoint. Response to the Company’s Clearford One™ and P4P™ offering during the first year of availability has been outstanding, and we look forward to expanding the value proposition beyond 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, ClearConvey™ small bore sewer, and ClearRecover™ final treatment facility. For additional information about Clearford Water Systems, please visit www.clearford.com
About Signina Capital AG
Signina Capital AG (Signina) is a Swiss domiciled investment firm specialized in water-related infrastructure. Signina is a member of the UN PRI. For additional information about 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 additional information please contact:
Kevin Loiselle, President & CEO
Clearford Water Systems Inc.
Phone: (613) 599-6474 ext. 303