OTTAWA, July 5 /CNW Telbec/ - Clearford Industries Inc. ("Clearford" or the "Company", TSX-V:CLI) today announced its intention to proceed with a common share issuance up to an amount of $500,000 by way of a private placement of equity units ("Units") at a price of $0.12 per Unit ("Private Placement"). Price protection of $0.12 for this private placement was filed on June 25, 2010. Each Unit will consist 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. 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. Proceeds will be applied to fund the Company's internal operations and working capital requirements. The Company currently has 40,251,175 shares outstanding and 54,796,185 shares on a fully-diluted basis. Investment in this issue of $250,000 has been committed (see below).
Upon closing of the private placement, the Company will have 44,417,841 shares outstanding and 63,129,518 shares outstanding on a fully-diluted basis.
The Company today announced that it has signed an agreement ("Agreement") with a developer in the Hubei Province of China ("Developer") to design Clearford's SBS system for a residential/commercial project ("Project") for a design fee of $50,000. The design fee will be paid upon submission of a systems design that is acceptable to both parties as well as upon the signing of a joint venture agreement whereby both Clearford and the Developer will work together to identify and pursue other related business opportunities within China. In addition, delivery of an acceptable design for the Project will enable the Developer and Clearford to work towards negotiating a definitive agreement for the construction of the SBS system for the Project. Should the definitive agreement not be reached, the design can not be used by the Developer on the Project. Prior to the signing of the Agreement, a party related to the Developer committed a $250,000 investment in the Private Placement, which was contingent upon the signing of the Agreement.
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