Clearford Announces Additional US$250,000 Term Loans, Audit Chair Resigns
OTTAWA, ON, Dec. 14, 2021 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today announced that it has entered into 2 additional new loan agreements for US$250,000 and that Mr. Andrew Szonyi, the Company's Audit Committee Chairman for the past 15 years has resigned. The proceeds of the financing will be used to fund working capital requirements including debt servicing of previously issued loans, and retirement of existing debt. The loans bear interest rate 9.75% per annum and matures on December 9th, 2031.
Each new loan is valued at US$125,000 and US$125,000, respectively. Each loan bears an interest rate of 9.75% payable semi-annually in May and November of each year. The Company provided a general security agreement over the assets of its subsidiary Clearford Koester Canada Inc. It is expected that the loans will be fully advanced during the current quarter of 2021.
The Company is also announcing that Andrew Szonyi has resigned. Mr. Szonyi has been an external director of the Company since 2006 and has been the Chair of the Audit Committee during this time. The Company has named Ian Ross, an independent director, as the new Chairman of the Audit Committee, and Kevin Loiselle has been added to the Audit Committee effective immediately. The Company did not announce a replacement for Mr. Szonyi.
Glenn Gold, the Chairman of the Board, thanked Mr. Szonyi for his years of distinguished service on the Board and as Chair of the Audit Committee and his many contributions to the Company in these roles over the years as part of a remarkable career of over 60 years of working, teaching and advising companies.
As the Company previously announced, its Board of Directors has initiated a formal process to review potential strategic alternatives available to the Company. This process is continuing and there is no additional new information currently available.
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, 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. 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.
Kevin Loiselle, President & CEO, Clearford Water Systems Inc., Phone: (613) 599-6474 ext. 303, www.clearford.com
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