OTTAWA, Aug. 18, 2015 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSX-V: CLI), today announced that it has cancelled 16,210,000 warrants in consideration for the issuance of 6,333,334 fully paid up common shares, as bonus shares, relating to its September 30, 2013, long-term financing. The Company received $5.44 million in long-term financing, and the lender received warrants with the right to acquire 16,210,000 common shares of the Company with an exercise price of $0.15 per share. The warrants would have expired on September 30, 2018. The transaction is subject to final approval from the TSX Venture exchange (TSX-V). In accordance with TSX-V rules and regulations, the shares will have a trading restriction for four month from the date of closing.
Prior to this transaction, the Company had 81,109,057 issued and outstanding shares and 111,001,697 shares on a fully diluted basis. Subsequent to this transaction, the Company will have 87,442,391 issued and outstanding common shares and 101,125,031 shares on a fully diluted basis.
"Cancellation of the warrants reduces the dilution to current shareholders by almost 9%" said Kevin Loiselle, President and CEO. "As the Company begins to implement the Clearford OneTM wastewater collection and treatment system in Ontario, through its Pay-for-Performance offering, this restructuring of the Company's equity capital, along with the recently closed private placement of convertible debt and common shares , provides a timely, material benefit to the company's shareholders and stakeholders in general", Mr. Loiselle said.
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 .
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