OTTAWA, June 18, 2015 /CNW/ - Clearford Water Systems
Inc. ("Clearford" or the "Company") (TSXV: CLI) held its Annual
General Meeting of Shareholders today in Ottawa. Kevin
Loiselle, Clearford CEO, reviewed key events of 2014 and the
first half of 2015. "More than a decade of investment culminated in
the launch of Clearford One™ in April last year, giving Clearford a
proven product that delivers waste water collection and treatment
with capital costs 40% below the cost of conventional systems and
operating costs 20% lower than those systems. Clearford One™ is
environmentally superior to conventional systems, with improved
impact of treated waste water from a given population on the
receiving watershed," Mr. Loiselle told shareholders.
"The cost and performance advantages of Clearford One™ allowed
the Company to contract with Signina Capital AG of Zurich for $100
million of project funding. The funds will pay 100% of
capital costs of Clearford One™ installation in Ontario
Municipalities carrying an "A" credit rating. Through Signina,
private investment funds project capital costs supported by a
contract with the municipality paying for waste water collection
and treatment services delivered by Clearford under a Service
Contract for at least 20, and as long as 30 years. At the end of
the contract, the Clearford One™ system, in as new condition,
belongs to the community without further charge.
"This Pay for Performance (P4P™) delivery model has been
enthusiastically received. We announced the model in January this
year. The first contract now under discussion would result in
project implementation revenue to Clearford of about $20 million and annual revenue of about
$400,000 per year for operation of
the system for 30 years, escalated with inflation. This would
commit $20 million of the
$100 million capital funding
currently available.
"Revenue from this initial P4PTM contract is expected
to exceed total revenue for the Company during the past 5 years
combined.
"The Company expects the full $100
million project funding facility to be committed by mid 2016
and converted to $90 million in
Clearford revenue earned through project delivery by the end of
2017 subject to the Ontario
permitting process. We have had interest from investors in
providing additional capital utilizing this model to expand the
program in Ontario and to make it
available in other markets", Mr. Loiselle said.
The second pivotal event for Clearford during 2014 was
acquisition of 90.7% of the shares of UV Pure Technologies Inc. (UV
Pure). This acquisition was closed in December last year. UV
Pure manufactures and sells ultraviolet (UV) water purification
systems based on patented Crossfire® technology.
Crossfire® enables use of reflective technologies and
real time performance monitoring to increase the effectiveness and
reduce the cost of UV purification of potable water and waste
water. In calendar 2014 UV Pure recorded revenue of $2.8 million and EBITDA of $518,000. For the first quarter of this year UV
Pure increased revenue by 22% and EBITDA by 5x compared with the
same period last. UV Pure recently announced a co-branding
agreement with Erie Water Treatment, a division of Aquion
Inc. under which UV Pure will supply systems to Erie to service the restaurant and hospitality
industry worldwide, co-branded as H2OptimaTM with
Crossfire® Technology.
The CEO reported to shareholders that Clearford One™ has been
selected in India by
Infrastructure Leasing & Financial Services Limited (IL&FS)
for servicing the small village of Jambudiyapura in Gujarat
State. IL&FS, based in Mumbai is one of the leading providers of
infrastructure in India.
Successful installation of Clearford One in this village has the
potential to lead Clearford into significant participation with
IL&FS in meeting the sanitation needs of Gujarat
and other States of India.
The State of Gujarat recently signed an MOU with Clearford for
cooperation in bringing sanitation to areas of the State. Delivery
of Clearford One™ for Jambudiyapura is expected to be completed
this year.
"The opportunities for Clearford One™ and for
Crossfire® Technology from UV Pure are truly remarkable"
Mr. Loiselle said. "Clearford's management team recognizes the
patience our investors have shown over the years. We believe that
the investment and patience will now yield results that were worth
the wait " he concluded.
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™ final treatment
facility. 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 15,000 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.
About Aquion Inc.
Aquion has been a leader in the
water treatment industry since 1953 as a manufacturer and marketer
of premium water treatment equipment and water quality solutions.
Headquartered in Elk Grove Village,
Illinois, Aquion provides solutions for residential water
treatment and commercial and light industrial applications through
four unique operating divisions: Erie Water Treatment, Clearwater
LLC, RainSoft, and ProSystems. For more information, visit
www.aquion.com.
About Erie Water Treatment
Erie Manufacturing Company
was founded in 1943. Although its first products were emergency
oxygen systems for military aircraft, Erie soon became a pioneer and innovator in
'devices to control flows' for application in oxygen, HVAC and
water treatment systems. In 1947, Erie became the world's first manufacturer to
develop and commercially produce an automatic regeneration control
valve for ion exchange water softeners. Today, with manufacturing,
sales and service operations in the
United States, Europe and
Asia, Erie is truly a global leader in the water
treatment industry, providing components and complete systems for
independent water treatment dealers, plumbing wholesalers, plumbing
contractors and foodservice equipment dealers. For full details on
H2Optimo technology, visit www.erie-h2optimo.com or call:
1-847-871-4750 in the U.S. or 32-14-28-5171 in Europe.
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 Water Systems Inc.
