OTTAWA, Nov. 19, 2014 /CNW/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI), today
announced the acquisition of a 90.5% interest in UV Pure
Technologies Inc. ("UV Pure"). UV Pure is a Toronto-based manufacturer and distributer of
ultraviolet systems for the purification of potable water, grey
water and wastewater, based on its proprietary Crossfire™
technology, with over 14,000 systems installed. UV Pure has
averaged approximately 10% annual revenue growth with positive
operating earnings in each of the past 5 years. Operating
earnings for the fiscal year ended May
31st, 2014 were $374,000 on revenues of $2.9 million (determined using Canadian
Accounting Standards for Private Enterprises). Following the
completion of the acquisition UV Pure will have no debt.
Clearford will acquire 90.5% of all outstanding shares of UV
Pure for a cash payment of $2.5
million, subject to adjustments at closing. UV Pure's
management team will retain the remaining shares of UV Pure. UV
Pure will operate as a corporate subsidiary of Clearford, under the
leadership of its President and CEO, Richard (Rick) Vansant. Clearford is funding the
acquisition and adding to working capital by sale of a
mortgage loan receivable and additional long-term debt. Clearford
is providing today an $800,000
non-refundable deposit which will be applied against the purchase
price. The transaction is expected to close on or before
December 10th, effective
October 31st, 2014, subject to the
approval of the TSX Venture Exchange.
The market for ultraviolet purification of water and wastewater
is estimated to be over $1 billion
annually, with growth forecasted at 14% annually by independent
market research firms. UV Pure's product line is based on
proprietary Crossfire™ technology that is a generational step ahead
of the technology used by competitors. The product line is lower in
capital and operating cost per unit of water flow, easier to
install, and both easier and cheaper to maintain. Full details can
be found at www.uvpure.com.
Clearford is currently the distributor of UV Pure's products in
Colombia, and sees the acquisition
as a strategic addition to ClearRecover™, the final step in the
Company's Clearford One™ wastewater collection and treatment system
to deliver clean and pure water.
Mr. Kevin Loiselle, President and
CEO of Clearford, commented: "We are very excited to add UV Pure
and its Crossfire™ technology to the Clearford family. Our
experience as Colombia distributor
has demonstrated that there is a robust worldwide market for this
technology. Test results using Crossfire™ directly on
ClearDigestTM effluent delivered through ClearConvey™
indicate that the Clearford OneTM system can produce
treated and disinfected water to meet the needs of many areas in
the developing world without the need for a wastewater treatment
plant. We look forward to introducing UV Pure to India and other international markets.
Mr. Richard Vansant, President
and CEO of UV Pure, welcomed the opportunity to build the market
position of Crossfire™ in cooperation with Clearford: "Our
leadership team is excited to begin the next chapter of UV Pure's
growth story in partnership with Clearford Water Systems. The
technologies of both companies are targeted toward distributed
treatment applications for municipal, industrial and commercial
customers, the fastest growing segment of the global market. We
believe that the combination of Clearford One™ and Crossfire™ will
leverage the strengths of Clearford and UV Pure to maximum
advantage", Mr. Vansant said.
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™. For more
information on Clearford Water Systems, please visit
www.clearford.com.
About UV Pure Technologies Inc.
UV Pure Technologies
manufactures technically advanced UV water purification systems.
The Company has won an Artemis Top 50 Clean Tech Company award, two
Frost and Sullivan Best Practices awards, a Canadian Drinking Water
Association award for innovation, and is a Going Green Global Top
200 company.
There are currently over 14,000 UV Pure systems in residential,
commercial, industrial, public and municipal applications, with
flow rates up to 1 million gallons per day. An aerospace version of
UV Pure's system is being used by Boeing to purify water on its new
787 Dreamliner.
UV Pure's patented Crossfire Technology® is
dramatically advantaged compared to conventional UV systems. Lamps
are mounted in air surrounded by elliptical reflectors providing
more effective deactivation of pathogens, facilitating easy lamp
changes and visual quartz inspection. They are self-cleaning, smart
- with multiple sensors and on-board diagnostics guiding
maintenance, engineered to be fail-safe, virtually maintenance
free, and are plug-in ready for remote monitoring. For more
information on UV Pure Technologies, please 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.
SOURCE Clearford Industries Inc.
