Post by
KewlNewf on Nov 19, 2018 12:45am
Clearford buys Ontario water utility, arranges loans
2018-06-04 16:50 ET - News Release Mr. Kevin Loiselle reports CLEARFORD ANNOUNCES THE ACQUISITION OF AN ONTARIO PRIVATE WATER UTILITY, AND ADDITIONAL DEBT FINANCING Clearford Water Systems Inc. has acquired a privately owned local water utility in Ontario's Niagara region that provides safe drinking water for approximately 300 residents on the shores of Lake Erie. The utility was purchased in an all-cash deal from a private owner. The utility's assets include regulatory permits and permanent infrastructure for water intake from Lake Erie, a drinking water treatment plant, and a water distribution pipe network to deliver potable water to residences. The company is also looking at options to expand the customer base, which may include new developments and existing residences or commercial operations serviced by private wells. The acquisition will be the foundation of the Clearford Water Utility (Ontario) Inc., a new subsidiary set up to acquire water and waste water assets in Ontario. This is the latest stage in the execution of the company's business model of becoming a full-service water utility and technology provider after the initial acquisition of Koester Canada and its Team Aquatic operations division in November, 2017. "We expect to increase the recurring revenue and operational profit generated from this new utility in the coming years as we implement best management practices and evaluate strategic upgrades that will lower the overall operating costs for the utility," said Kevin Loiselle, president and chief executive officer of Clearford. "We will continue to review acquisition targets in an effort to make additional similar strategic acquisitions as Clearford is now in an excellent position to deploy this new utility model for other communities in Ontario that can benefit from the unique combination of professional services, end-to-end engineered solutions and project-based financing that we have put together to support the company's growth plans over the past year," he concluded. In conjunction with this acquisition, Clearford announced that it has entered into two new loan agreements. The total value of the new loans is $2.26-million (U.S.). Both loans are 10-year-term loans and bear a 9.75-per-cent interest rate with interest payable semi-annually. The company also announced that it has received final approval for the $1.65-million (Canadian) convertible debenture it previously announced. About Clearford Water Systems Inc. Clearford Water Systems is a provider of unified water management solutions for the design, deployment, finance and operation of water infrastructure systems. The company's technology-based water solutions include Clearford One waste water infrastructure systems, Clearford M-brane packaged treatment solutions and a full range of UV Pure water disinfection products. Clearford is the winner of the Frost & Sullivan 2017 enabling technology leadership award for global decentralized water and waste water treatment. We seek Safe Harbor. 2018 Canjex Publishing Ltd. All rights reserved.