AFS.L Share News (AFS)

(Sharecast News) - Amiad Water Systems updated the market on a potential investment on Friday, which it initially outlined on 11 September.
The AIM-traded firm said it had been notified by three of its substantial shareholders, FIMI Opportunity Funds, AMSI Investments and Keren HaChoshlim Agricultural Cooperative Society for Business, that they had entered into an agreement under which they supported the transaction.

Subject to receipt of the requisite regulatory and corporate approvals, FIMI would invest up to £17.6m in the company through the placing of ordinary shares at a price of 230p per share, representing about 25% of the firm's enlarged issued share capital.

Under the terms of the agreement, the three shareholders had agreed that, upon and subject to the completion of the Investment by FIMI, they would enter into a number of transactions.

Amiad said FIMI would purchase 1,109,918 ordinary shares in the company from HaChoshlim at a price of 230p per share, and the three shareholders would enter into a shareholders' agreement.

The company and FIMI had not yet entered into an agreement with respect to the investment, the board noted.

If the Investment by FIMI in the company was not completed by 30 September 2020, the agreement between the shareholders would terminate.

"If the investment by FIMI in the company is consummated, the company and FIMI would need to enter into a relationship agreement to regulate their future relationship," the board said in its statement.

"In addition, the company would seek to vary the terms of its current relationship agreement with HaChoshlim."

At 0944 GMT, shares in Amiad Water Systems were down 11.97% at 250p.