Clearford Forecasts $90 Mil Revenue

The CEO of Clearford Water Systems forecasts $90 million revenue over the next 30 months

Clearford Water Systems Inc. ("Clearford" or the "Company") (TSXV: CLI) held its Annual General Meeting of Shareholders today inOttawa.Kevin Loiselle, Clearford CEO, reviewed key events of 2014 and the first half of 2015. "More than a decade of investment culminated in the launch of Clearford One™ in April last year, giving Clearford a proven product that delivers waste water collection and treatment with capital costs 40% below the cost of conventional systems and operating costs 20% lower than those systems. Clearford One™ is environmentally superior to conventional systems, with improved impact of treated waste water from a given population on the receiving watershed," Mr. Loiselle told shareholders.

"The cost and performance advantages of Clearford One™ allowed the Company to contract with Signina Capital AG ofZurichfor$100 millionof project funding. The funds will pay 100% of capital costs of Clearford One™ installation in Ontario Municipalities carrying an "A" credit rating. Through Signina, private investment funds project capital costs supported by a contract with the municipality paying for waste water collection and treatment services delivered by Clearford under a Service Contract for at least 20, and as long as 30 years. At the end of the contract, the Clearford One™ system, in as new condition, belongs to the community without further charge.

"This Pay for Performance (P4P™) delivery model has been enthusiastically received. We announced the model in January this year. The first contract now under discussion would result in project implementation revenue to Clearford of about$20 millionand annual revenue of about$400,000per year for operation of the system for 30 years, escalated with inflation. This would commit$20 millionof the$100 millioncapital funding currently available.

"Revenue from this initial P4PTMcontract is expected to exceed total revenue for the Company during the past 5 years combined.

"The Company expects the full$100 millionproject funding facility to be committed by mid 2016 and converted to$90 millionin Clearford revenue earned through project delivery by the end of 2017 subject to theOntariopermitting process. We have had interest from investors in providing additional capital utilizing this model to expand the program inOntarioand to make it available in other markets", Mr. Loiselle said.

Source: WBOY

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• Treatment
• Waste Water Treatments
• Governance & Planning