Nov. 26, 2010 (Canada NewsWire Group) --
OTTAWA, Nov. 26 /CNW/ - Clearford Industries Inc. ("Clearford" or the "Company", TSX-V:CLI) today issued a review and the financial results for the third quarter of 2010, which ended September 30, 2010 (all figures in Canadian dollars and in accordance with Canadian GAAP).
During the quarter Clearford signed initial agreements for the design of the SBSTM waste-water system in China, India and Colombia.
"These initial agreements are indicative of very strong and immediate demand for the SBSTM system in those areas of the world that currently have limited or no sanitary sewage systems. These regions are targets for investments by both national and international agencies" said Bruce Linton, President & CEO of Clearford.
Clearford was the Silver Medal recipient of the Canada China Business Council award for Innovation and Best Practice in the Chinese Market by a Canadian SME. This recognition was followed by the signing of an agreement to establish an Equity Joint Venture with a Chinese partner in China, as was also previously announced by Clearford.
Also in the third quarter, installation of the SBSTM in a residential development in Almonte, Ontario was announced. This project was the first in Ontario following the disruption of the financial markets in 2008.
"This year has been very rewarding for Clearford as our focus on developing countries produces solid projects and prospects for outstanding growth, and the domestic market shows early signs of life." Mr. Linton said.
The Company recorded a net loss for the third quarter ended September 30, 2010 of $530,038 or $0.01 per share as compared to a net loss of $466,968 or $0.02 per share for the same period of the prior year and a net loss of $558,862 or $0.02 per share for the second quarter of 2010. The Company reported revenue of $150,000 in the current quarter.
For the nine months ended September 30, 2010 the Company recorded a net loss of $1,640,374 or $0.05 per share as compared to a net loss of $1,346,712 or $0.05 per share for the same period of the prior year. The increase in loss mainly relates to increased costs incurred in support of the Company's international initiatives.
For the third quarter ending September 30, 2010, cash used in continuing operations was $903,290 compared to cash used in continuing operations of $278,315 for the same period of the prior year and cash used in continuing operations of $620,088 for the second quarter of 2010. For the nine months ending September 30, 2010, cash used in continuing operations was $1,931,697 compared to cash used in continuing operations of $1,265,858 for the same period of the prior year. The change in cash used in continuing operations was due to increased costs incurred in support of international initiatives, the settlement in the prior year of the working capital adjustment relating to the divestiture of Brooklin Concrete, as well as operating expense prepayments.
As previously announced, the Company closed a private placement on October 22, 2010 for a total of $1,160,500 at a price of $0.25 per equity unit ("Unit") whereby each Unit consists of one common share and one warrant to acquire an additional one-half common share with an exercise price of $0.30 per common share and a two year term. This placement brings the total equity invested in Clearford during 2010 to $3,115,000. The funds received will be applied to the operating and working capital requirements as the Company continues to pursue international opportunities.
The Company was selected to participate in the Federal Government infrastructure Cleantech mission to Turkey and Greece from December 6-10, 2010 led by the Honourable Peter Van Loan, Canada's Minister of International Trade.
On November 23, 2010, Clearford was selected for research funding for the bio-gas collection system that will enhance the Company's international product offering. The funding support in the amount of $50,000 is being provided by the Federal Economic Development Agency for Southern Ontario under its Applied Research and Commercialization Initiative Program.
While Clearford believes that significant and near term opportunities exist for the Company's solution, there can be no assurance that customer agreements will be reached or that such agreements will be profitable should they be implemented.
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™), a watertight small diameter wastewater collection system that provides servicing with superior operational and environmental performance at a significantly lower cost when compared to historic gravity sewers. Clearford's SBS™ technology and industry expertise provide the enabling platform to deliver, on a global basis, turnkey, fixed-price wastewater collection, treatment and energy generation solutions that are ideally suited for water-scarce regions, those with unreliable water distribution networks, and new developments seeking a greener approach to 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.
President and CEO
Clearford Industries Inc.
Phone: (613) 599-6474 ext. 301