(Alliance News) - Modern Water PLC said Friday it intends to raise GBP1.9 million through a placing, which will go towards working capital purposes, and the repayment of debts.
Should the placing go through, Modern Water will appoint Gerard Brandon as non-executive chair, and Nigel Burton as non-executive director.
Brandon is currently chief executive officer at AIM-listed heatlh care company Integumen PLC, and has been for two years since 2018.
The London-based wastewater services firm will issue 370.0 million shares at a price of 0.5 pence per share, reflecting a 60% discount to Modern Water's closing price on Thursday at 1.25p.
Shares in Modern Water were 42% lower at 0.72 pence on Friday in London.
The company said the placing will be oversubscribed, due to the introduction of new cornerstone investors by broker Turner Pope Investments Ltd.
As well as debt repayments, proceeds will also go towards supporting the development of Modern Water's patented Membrane and Monitoring products.
The placing is subject to shareholder approval at a general meeting on February 14.
"We are delighted to receive substantial support from a number of new and existing investors introduced by TPI. The net funds from the Placing will allow us to address all of our outstanding liabilities, provide working capital to alter the business model to drive increased revenues by collaborations and revenue sharing opportunities that build and extend our existing sales, marketing and distribution channels," said Chief Executive Officer Simon Humphrey.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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