Clearford Water Systems is taking on two new loans worth a total of US$4.275 million in a bid to strengthen its balance sheet.
The Ottawa-based water solutions company said earlier this week the new loans are valued at US$2.375 million and US$1.9 million and carry an interest rate of 9.75 per cent.
Clearford said the new loans will help it manage its debt as it transitions to a full-service water solutions company that provides wastewater management and disinfectant systems. The firm first announced its plan to become a full-service utility through acquisitions back in 2017.
The company said this week its board of directors had previously launched a review of “potential strategic alternatives” available to the firm, adding the process was ongoing and no new information was available.
Clearford reported revenues of $14.7 million for the 2020 fiscal year ending Dec. 31, up from $12.8 million the year before. The company posted a net loss of $8.9 million last year, down from $13.3 million in 2019.