OTTAWA, March 23, 2020 /CNW/ - Clearford Water
Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today
announced that it has entered into a new US$1.5 million loan with an existing lender. The
proceeds of the loan will be used to repay certain short-term debt
and assist the Company in meeting its short-term working capital
requirements. The loan bears interest at 8% per annum and matures
on December 15, 2020.
The Company announces that its Board of Directors (the "Board")
has initiated a formal process to review potential strategic
alternatives available to the Company (the "Process"). The
Board has appointed an independent committee (the "Special
Committee") to undertake a broad review of potential alternatives
to enhance Company value. Such strategic alternatives may include,
but are not limited to, a sale or merger of the Company or other
form of business combination; a sale or joint venture involving all
or a portion of the assets; a recapitalization of the Company or
other form of strategic investment; new long-term debt financing or
the purchase of assets. The Company has not set a definitive
schedule for the Process and the Company does not intend to provide
updates or otherwise disclose developments with respect to the
Process until the Board has approved a definitive transaction or
strategic alternative, or otherwise determines that disclosure is
necessary or appropriate.
"With the completion of phase 1 of the Company's strategy of
becoming a full-service provider of water and wastewater services
in Ontario through a series of
acquisitions, we are now entering phase 2, which requires
streamlining the Company's capital structure to enable the more
rapid growth of integrated business lines and financial performance
improvement in general", said Kevin
Loiselle, Clearford's Chief Executive Officer.
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 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.
www.clearford.com
SOURCE Clearford Water Systems Inc.
