Clearford announces increase in long-term debt facility and shareholder approval of amendment to stock option plan
27 Jun, 2013, 16:30 ET
OTTAWA, June 27, 2013 /CNW/ - Clearford Industries Inc. ("Clearford" or the "Company"), (TSXV: CLI) today announced that it has increased the available funding amount on its previously announced 20 year term loan with Mundaun Financial Design AG of Switzerland (the "Lender") to C$8.54 million through an amendment dated June 7, 2013. As previously announced, the Company entered into a C$5.5 million term loan with the Lender on March 16th, 2012 which was subsequently increased to C$7.95 million through amendments to the original loan on November 9, 2012, December 21, 2012, January 31, 2013, March 22, 2013 and April 12, 2013.
In connection with the loan amendment, Clearford will grant 750,000 non-transferrable warrants entitling the Lender to purchase one treasury common shares of Clearford for each warrant, at a price of $0.20 per share, until three years from the closing date. The warrants are subject to final approval by the TSX Venture Exchange. Common shares of Clearford issued by exercise of the warrants will be subject to a hold period until four months and one day from the closing date of the loan and warrant transaction. Shareholder approval was received at the Company's Annual General Meeting ("AGM"), allowing the Company to issue warrants which if exercised would exceed 20% of the issued and outstanding shares of the Company.
Clearford will pay a 10% fee to an arm's length third party as amounts are advanced.
Additionally, The Company has also received shareholder approval today at its AGM to amend its stock option plan, the effect of which will be to increase the maximum number of options in the pool to twenty percent of the issued and outstanding shares of the Company based on the outstanding shares currently outstanding. As a result the company may grant up to 13,169,510 options under the amended plan.
The Company also received disinterested shareholder approval of Options granted to Mr. Kevin Loiselle, President and CEO which was previously disclosed by the Company.
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™) based solution, which enables the efficient collection and treatment of sewage. Its superior operational and environmental performance is achieved at a significantly lower operational cost when compared to historic gravity sewers. Clearford's SBS™ technology and industry expertise provide the enabling platform to deliver on a global basis, a turnkey, wastewater collection and treatment solution that is ideally suited for; water-scarce regions, communities with unreliable water distribution networks, and new developments seeking a greener approach to full 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:
Clearford Industries Inc.
Phone: (613) 762-8402
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