OTTAWA, June 4, 2018 /CNW/ - Clearford Water Systems Inc.
("Clearford" or the "Company"), (TSXV: CLI), today announced the
acquisition of a privately owned local water utility in
Ontario's Niagara Region that
provides safe drinking water for approximately 300 residents on the
shores of Lake Erie.
The utility was purchased in an all cash deal from a private
owner. The utility's assets include regulatory permits and
permanent infrastructure for water intake from Lake Erie, a drinking water treatment plant,
and a water distribution pipe network to deliver potable water to
residences. The Company is also looking at options to expand the
customer base which may include new developments and existing
residences or commercial operations serviced by private wells.
The acquisition will be the foundation of the Clearford Water
Utility (Ontario) Inc., a new
subsidiary set up to acquire water and wastewater assets in
Ontario. This is the latest stage
in the execution of the Company's business model of becoming a
full-service water utility and technology provider after the
initial acquisition of Koester
Canada and its Team Aquatic operations division in
November 2017. "We expect to increase
the recurring revenue and operational profit generated from this
new utility in the coming years as we implement best management
practices and evaluate strategic upgrades that will lower the
overall operating costs for the utility," said Kevin Loiselle, President and CEO of
Clearford.
"We will continue to review acquisition targets in an effort to
make additional similar strategic acquisitions as Clearford is now
in an excellent position to deploy this new utility model for other
communities in Ontario that can
benefit from the unique combination of professional services,
end-to-end engineered solutions and project-based financing that we
have put together to support the Company's growth plans over the
past year," he concluded.
In conjunction with this acquisition, Clearford announced that
it has entered into two new loan agreements. The total value of the
new loans is US$2.26 million. Both
loans are 10-year term loans and bear a 9.75% interest rate with
interest payable semi-annually. The Company also announced that it
has received final approval for the C$1.65
million convertible debenture it previously announced.
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.
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.
