Clearford Water Systems Inc. (
TSX: V.CLI,
Stock Forum) announced a flurry of financing initiatives Wednesday with the aim of paying down debt and funding its water management and sanitation operations.
The company hopes to raise $1.5 million via a private placement of three million common shares from treasury at 50 cents per share.
Clearford said it has already received conditional approval from the TSX Venture Exchange to close the private placement.
The company also said it has received and closed subscription agreements from subscribers for 2.9 million of the three million shares, raising gross proceeds of $1.45 million.
The remaining $50,000 is expected to be secured by August 7, 2015,
the company said in a press release.
In addition, Clearford said it has negotiated a private placement of a $3.5 million convertible debenture, bearing an interest rate of 5%. The debenture is secured by the company’s investment in UV Pure Technologies Inc.
The debentures will be convertible into common shares of the company at an exchange price of $0.55 per share in minimum denominations of $100,000.
Subject to TSX Venture Exchange approval, the private placement is expected to close in early August, 2015.
In line with TSX rules and regulations, there will be a trading restriction on the debentures and the associated treasury shares for four months from the date of closing. The private placement is comprised of investors from Europe, the company said.
Clearford Water Systems shares eased 1% to 46.5 cents Wednesday, leaving the company with a market cap of 36.4 million, based on 78.2 million shares outstanding.