LONDON (Alliance News) - Modern Water PLC on Tuesday said it secured an investment of GBP552,349 from Chinese company Hangzhou Shangtuo Environmental Technology Co Ltd, trading as Sunup.
The water & wastewater technology company said environmental technology company Sunup subscribed for 5.0 million shares at a price of 11 pence each. The stock was trading 4.4% higher on the day Tuesday at 9.40p per share.
Upon completion of the transaction, Sunup will be interested in 5% of the enlarged share capital of Modern Water.
Sunup has agreed to lock-in restrictions for 12 months following the subscription and orderly market restrictions for a period of 12 months after that. It has also been granted one non-transferrable warrant per share, exercisable within 12 months from completion of the subscription, at 13 pence per share.
"As a new shareholder we look forward to both contributing to and sharing in the long-term success of Modern Water," said Sunup Chief Executive Noah Tan.
"I am very pleased to welcome Sunup as a shareholder in Modern Water and look forward to working with Tan and the highly experienced and committed team at Sunup to capitalise on the significant demand for Modern Water's innovative technologies in China," said Modern Water Chief Executive Simon Humphrey.
Looking forward, Modern Water said it intends to give existing shareholders the opportunity to subscribe for shares, on the basis of one share for every ten held, at the same price as Sunup. The fundraising is planned after he publication of interim results.
The company did not provide the details when it will publish its half-year report.
