Clearford Announces Closing of Purchase of ASI Water, Advancing Business Plan to Transition into a Water Utility
OTTAWA, May 15, 2019 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), today announced the closing of its acquisition of the water and wastewater assets of ASI Group Ltd, an Ontario-based engineering and marine technology company (the "Transaction"). The water and wastewater business assets known as ASI Water have been acquired by the Company's wholly-owned subsidiary Clearford ASI Inc. Details of the Transaction were initially announced on May 3, 2019.
The Company financed the transaction by entering into two secured loan agreements. Clearford Koester Canada Inc., a subsidiary of the Company, entered into a loan agreement dated May 6, 2019 with Sustainable Water Treatment Inc. for the borrowing of USD$2,544,000, which loan bears interest at 9.75% per annum and will mature on May 15, 2029. The loan is secured by a general security interest over Clearford Koester Canada Inc.
Clearford Koester Canada Inc. entered into a loan agreement dated May 6, 2019 with Sustainable Water Treatment, East Coast, LLC for the borrowing of USD$1,160,000, which loan bears interest at 9.75% per annum and will mature on May 15, 2029. The loan is secured by a general security interest over Clearford Koester Canada Inc.
Kevin Loiselle, President & CEO of Clearford, related the significance of the acquisition to the Company's utility business model of providing comprehensive water management services: "The engineering and operations expertise of the ASI Water team complements Clearford's existing capabilities and positions the Company as a leading provider of decentralized and small water system solutions in Ontario. The acquisition increases the size of the company to over 90 employees operating 170 facilities Ontario, Clearford now has the critical mass to deliver the breadth and quality of services required for long-term water and wastewater utility operations."
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, financing 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. 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 factors; 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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