Clearford Water Systems has announced the closing of its acquisition of the water and wastewater assets of ASI Group Ltd, an Ontario-based engineering and marine technology company. The water and wastewater business assets known as ASI Water have been acquired by the Company’s wholly-owned subsidiary Clearford ASI Inc. Details of the Transaction were initially announced on May 3, 2019.
The Company financed the transaction by entering into two secured loan agreements. Clearford Koester Canada Inc., a subsidiary of the Company, entered into a loan agreement dated May 6, 2019 with Sustainable Water Treatment Inc. for the borrowing of USD$2,544,000, which loan bears interest at 9.75% per annum and will mature on May 15, 2029. The loan is secured by a general security interest over Clearford Koester Canada Inc.
Clearford Koester Canada Inc. entered into a loan agreement dated May 6, 2019 with Sustainable Water Treatment, East Coast, LLC for the borrowing of USD$1,160,000, which loan bears interest at 9.75% per annum and will mature on May 15, 2029. The loan is secured by a general security interest over Clearford Koester Canada Inc.
Kevin Loiselle, President & CEO of Clearford, related the significance of the acquisition to the Company’s utility business model of providing comprehensive water management services: “The engineering and operations expertise of the ASI Water team complements Clearford’s existing capabilities and positions the Company as a leading provider of decentralized and small water system solutions in Ontario. The acquisition increases the size of the company to over 90 employees operating 170 facilities Ontario – Clearford now has the critical mass to deliver the breadth and quality of services required for long-term water and wastewater utility operations.”