OTTAWA, Jan. 24, 2012 /CNW/ - Clearford Industries Inc ( "Clearford" or
the "Company"), (TSX-V: CLI) today announced that it intends to
complete a brokered private placement within the next 60 days.
The placement will be a common share issuance of up to $1.5 million
through a series of private placements of equity units "Units" at a
price of $0.16 per Unit. Each Unit will consist of one common share and
one warrant to acquire an additional common share with an exercise
price of $.25 per common share and exercisable for two years commencing
on the underlying closing dates.
The Units will be subject to a restriction from trading on the TSX V for
four months from the closing date in accordance with TSX V rules and
regulations for private placements. Proceeds will be applied to fund
Clearford's internal operations and working capital requirements.
Participation in the private placement will include third parties, as
well as current shareholders of Clearford. Clearford currently has
64,246,509 shares outstanding and 80,265,653 shares on a fully-diluted
basis. Upon closing of the private placement the outstanding shares may
increase to 73,621,509 and 99,015,653 shares on an issued and
fully-diluted basis respectively. It is intended that SC Stormont
Holdings "Stormont" will participate in the private placement in an
amount that may exceed 25 percent of the private placement, but shall
not exceed 50 percent. Stormont currently owns 19 percent of the issued
and outstanding shares of Clearford. Stormont is controlled by Roderick
M. Bryden. Mr. Bryden is also a director of Clearford.
A broker fee of 5 percent will be paid to Cillo Finance Inc. on
investments made by certain arms-length investors.
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™), a watertight small diameter wastewater
collection system that provides servicing with superior operational and
environmental performance 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 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 Industries Inc.
For further information:
President and CEO
Clearford Industries Inc.
Phone: (613) 599-6474 ext. 301