OTTAWA, July 13 /CNW Telbec/ - Clearford Industries Inc. ("Clearford" or the "Company", TSX-V:CLI) today announced it has closed its private placement as announced on July 5, 2010. A total of $500,000 has been subscribed for under this private placement at a price of $0.12 per equity unit ("Units"). Each Unit consists of one (1) common share and one (1) warrant to acquire an additional common share with an exercise price of $0.18 per common share and a two year term, which commences on the closing date of the private placement. The common shares issued will be subject to a restriction from trading on the TSX Venture Exchange ("TSX-V") for four months from the closing date in accordance with TSX-V rules and regulations for private placements. This private placement was lead by Balloch Investment Group in Beijing, China. Mr. Howard Balloch is Chairman of Balloch Investment Group, and is President and Founding Partner of The Balloch Group, which is a leading independent advisory and merchant banking firm in China and was the Canadian Ambassador to China from 1996 - 2000. In connection with this private placement, 6% brokerage fees amounting to $30,000 were paid in Units. Proceeds will be applied to fund the Company's internal operations and working capital requirements.
In addition, the Company today announced that it had closed the final tranche of its originally announced private placement on May 13, 2010. The final tranche is in the amount of $330,000 at a price of $0.10 per equity unit ("Units"). A total of 3,300,000 Units were subscribed for and issued under this tranche. Each Unit consists of one (1) common share and one (1) warrant to acquire an additional common share with an exercise price of $0.15 per common share and a two year term, which commences on the closing date of the private placement. The common shares issued will be subject to a restriction from trading on the TSX Venture Exchange ("TSX-V") for four months from the issue date in accordance with TSX-V rules and regulations for private placements. In connection with this private placement, 6% brokerage fees amounting to $15,000 were paid in Units. Proceeds will be applied to fund the Company's internal operations and working capital requirements. A total of $1,454,501 has been subscribed for under this private placement of which $635,000 was subscribed for by SC Stormont Holdings Inc., a company controlled by the Chairman and a Director of the Company, as well as $269,501 subscribed for by other Directors of the Company including a company controlled by a Director.
Upon the closing of the above private placements the Company has 44,842,841 shares outstanding and 70,913,865 shares outstanding on a fully-diluted basis.
"The investment by the Balloch Investment Group is a significant milestone for Clearford in China" commented Bruce Linton, President and CEO of Clearford. Mr. Linton further stated "It remains the intention of Clearford to service a 520 acre eco-industrial park in which Mr. Balloch is a partner and to establish a full design and fabrication capacity with the Balloch group as a central part of our China market participation plan". The China program builds on the strategy announced by the company in 2009 for China, India, Sri Lanka and several other countries with significant populations that require waste-water infrastructure that yields clean water and green energy.
The Company amended its stock option plan at its Annual General Meeting on June 23, 2010 increasing the maximum number of options in the pool to 8,110,235 shares. At the close of business on July 12, 2010, the Company granted a total of 4,946,251 options to Directors and Officers and Insiders of the Company to purchase common shares of the Company at an exercise price of $0.15 per share, subject to TSX-V approval. The expiry date of these option grants range from November 28, 2011 to July 12, 2015 and the vesting terms for the new grants are 1/3rd vesting at the end of year one, 1/3rd vesting at the end of year two and the final third vesting at the end of year three. Option grants that have a remaining term of less than two years vest immediately.
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(TM) (SBS(TM)), 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(TM) 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 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.
SOURCE Clearford Industries Inc.
For further information: For further information: Bruce Linton, President and CEO, Clearford Industries Inc., Phone: (613) 599-6474 ext. 301, www.clearford.com