OTTAWA, March 2, 2017 /CNW/ - Clearford Water Systems Inc. ("Clearford" or the "Company"), (TSXV: CLI), a TSX Venture 50 Company, today provided a further update on its new long-term loan which was originally announced on April 19, 2016 and announced that is has signed a $300,000 credit agreement with a Canadian Chartered Bank.
As previously announced, Sustainable Water Projects Inc. ("SWP") and Clearford have executed a loan agreement providing up to US$5.25 million to be invested by SWP, in tranches. The final date for advances under this loan agreement has now been extended to March 15, 2017, from February 28, 2017.
Interest payments on existing long term debt that would have otherwise been payable on February 28, 2017, pursuant to previous funding extensions have also been deferred to the earlier of the date of final advance of the balance of the US$5.25 million term loan or March 15, 2017, whichever is earlier.
The Company also announced that it has entered into a credit agreement with a Canadian Chartered Bank which will provide up to $300,000 of short-term bridge financing to the Company. The agreement provides the Company with a $300,000 revolving loan to meet its short-term working capital requirements. The Loan is secured by a guarantee from the Company's Chairman of the Board. The Company has drawn $100,000 on this loan to date.
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