OTTAWA, Aug. 16, 2016 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI), a TSX Venture 50 Company, today announced funding for capital costs to deliver the Company's proposal in response to the RFP issued by the Township of Adjala-Tosorontio for wastewater collection and treatment.
The RFP was issued on April 24th with an original response date of June 24th, 2016. The response date has been extended by the Township and is now set for September 16th, 2016.
Signina Capital AG of Zurich, Switzerland, has confirmed acceptance of the project for funding under the previously announced $100 million Pay for Performance Agreement between Signina and Clearford which requires each project under the agreement to be approved by Signina subject to the original P4P agreement January 13, 2015, as amended on February 22, 2016. Funding is subject to Clearford being awarded the contract and the execution of project agreements with the Township.
The RFP, as amended by the Township, calls for the servicing of 1,366 equivalent residential lots under Design, Build, Finance, Operate and Maintain Agreements, with quarterly payments from the Township over a 25 year period following the completion of the capital works and commencement of operations of the system. Clearford is one of 2 qualified proponents invited to respond to the RFP following the response by six potential bidders to a Request for Expression of Interest issued by the Township in 2015.
In addition to funding this project, Signina and Clearford have agreed to extend the scope of the Pay for Performance Agreement to include projects throughout Canada. The current agreement is limited to Ontario. Total funding under the agreement will be increased from $100 million to $250 million for commitments made prior to August 15th, 2019.
Clearford also announced that funding by Sustainable Water Projects under a US$5.25 million term loan, initially intended to be fully advanced prior to August 15th is now expected to be advanced prior to September 30th 2016. US$990,000 has been advanced under this loan to date.
Interest payment on existing long term debt that would have been payable on August 15th has also been deferred to the earlier of the date of advance of the balance of the US$5.25 million term loan or September 30th.
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 Inc. (TSX-V: CLI) is a provider of unified water management and sanitation systems based on Clearford One™. Clearford One™ is a proprietary system comprised of ClearDigest™ smart digester, ClearConvey™ small bore sewer, and ClearRecover™ final treatment facility. For more information on Clearford Water Systems, please visit www.clearford.com.
About Signina Capital AG
Signina Capital AG is a Swiss based investment firm specialized in water-related infrastructure. For more information on Signina, please visit www.signinacapital.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 Water Systems Inc.
For further information: Kevin Loiselle, President & CEO, Clearford Water Systems Inc., Phone: (613) 599-6474 ext. 303, www.clearford.com