OTTAWA, July 31, 2013 /CNW/ - Clearford Industries Inc. ("Clearford" or
the "Company"), (TSXV: CLI) today issued its second quarter financial
results for the period ended June 30, 2013. The statements are
presented in accordance with IFRS (all figures in Canadian dollars
unless otherwise noted).
During the quarter Clearford continued to market its patented Small Bore
Sewer (SBS™) based solution focusing primarily on international markets
including Colombia, India, Peru, the Philippines and the Caribbean.
As a result of these efforts, as previously announced, Clearford signed
and started the construction of its first contract in Colombia in May
of this year. At the end of the quarter, the Company recorded revenue
of $158,000 related to Phase I of this contract. It is expected that
the remainder of this phase will be completed on or before September
30, 2013. In addition to this project, the implementation of projects
in Peru and India are ongoing. The company expects that all ongoing
implementation projects will be completed in 2013 which will provide
the company with reference sites in three international markets.
"Cayunda is a very exciting assignment for Clearford as it represents
our first integrated water infrastructure project", said Clearford CEO
& President Kevin Loiselle.
Clearford Colombia S.A. is currently responsible for the installation of
all water services in the Cayunda development just outside of Bogota.
These services include: potable water supply & treatment; waste water
collection & treatment; recycled water system; and storm water
"We believe that this holistic approach to water infrastructure is the
direction that the industry is moving towards and this project provides
us with the opportunity to be at the forefront of this trend ",
continued Mr. Loiselle "Cayunda will demonstrate Clearford's capacity
to provide complete water services worldwide".
During the quarter, the Company's Long Term Project Financing and
Working Capital loan agreement was amended to increase the available
funds under the agreement by $1.34 million to $8.5 million at the end
of the quarter. Subsequent to the quarter end, and as previously
announced on July 10, 2013, the loan was amended to increase the
facility by $0.3 million to $8.8 million which additional funding has
been received in full.
Today, the Company also announced that it has increased the available
funding amount on its previously announced 20 year term loan with
Mundaun Financial Design AG of Switzerland (the "Lender") by $0.4
million to C$9.2 million through an amendment dated July 26, 2013 (the
"Amendment"). As previously announced on March 16, 2012, the Company
entered into a C$5.5 million term loan with the Lender (the "Loan"),
which was increased to C$8.8 million through amendments to the
principal amount of the Loan, as previously announced.
In connection with the Amendment, Clearford will grant 864,000
non-transferrable warrants entitling the Lender to purchase one
treasury common share of Clearford for each warrant, at a price of
$0.20 per share, until three years from the closing date of the
Amendment, the warrant component of which is subject to the approval of
the TSX Venture Exchange.
Clearford will pay a 10% fee to an arm's length third party on the
For the quarter ended June 30, 2013 the Company recorded a net loss of
$922,691 or $0.02 per share as compared to a net loss of $1,038,255 or
$0.02 per share for the prior year. The Company reported $207,228 of
revenue $96,734 of gross margin, $876,988 of operating expenses and
$142,347 of net financing costs in the current quarter compared to $Nil
revenue, $Nil gross margins, $933,038 of operating expenses of, and
$105,217 of net financing costs in the prior year. The decrease in loss
relates primarily to the increase in revenues and margins in the
quarter and reduced operating costs, offset by the additional financing
costs incurred on the long-term debt negotiated in the first quarter of
the prior year. For the 6 months ended June 30, 2013, the company
recorded a net loss of $1,888,760, or $0.03 per share as compared to a
net loss of $1,892,273, or $0.03 per share in the prior year
comparative period. The Company reported $279,080 of revenue, $95,029
of gross margin, $1,632,977 of operating expenses and $255,783 of net
financing costs for the first 6 months ended June 30, 2013 compared to
$Nil revenue, $Nil gross margins, $1,768,114 of operating expenses, and
$124,159 of net financing costs in the prior year.
For the quarter ended June 30, 2013, cash used in operations was
$1,575,878 compared to cash used in operations of $1,188,827 for the
While Clearford believes that significant and near term opportunities
exist for the Company's solution, there can be no assurance that
customer agreements will be reached or that such agreements will be
profitable should they be implemented.
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 Industries Inc.
Clearford Industries Inc. (TSX-V: CLI) is the developer of the patented
Small Bore Sewer ™ (SBS™) based solution, which enables the efficient
collection and treatment of sewage. Superior operational and
environmental performance is achieved at a significantly lower cost
when compared to historic gravity sewers. Clearford's SBS™ technology
and industry expertise provide the enabling platform to deliver, on a
global basis, turnkey, fixed-price wastewater collection, treatment and
energy generation solutions that are ideally suited for water-scarce
regions, those with unreliable water distribution networks, and new
developments seeking a greener approach to water and wastewater
management. For more information on Clearford, please 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 managements 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
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 Industries Inc.
For further information:
Clearford Industries Inc.
Phone: (613) 762-8402