Modern Water places 20m shares to raise funds for membrane division

Modern Water, a water purifying and monitoring technology company, has placed 20m new ordinary shares with both new and existing shares at 50p each.The placing has raised £9.5m after expenses, which will be use to pursue opportunities identified by its membrane division to commercialise its Forward Osmosis technology, particularly across China and the Middle East, and to also grow Modern Water's monitoring business by licensing and acquiring innovative, proven products to leverage its international distribution network.Neil McDougall, Executive Chairman of Modern Water said: "We are delighted by the strong support, demonstrated by both existing and new shareholders, for the fundraising announced today which was oversubscribed. This is a great vote of confidence in Modern Water. "The funds raised will enable us to increase the level and reach of market activities and invest in our growth strategy in key markets, with a particular focus on activities in China. We intend to invest in further improvements in membrane efficiency for the Membrane Processes Division and to expand the Monitoring Division through acquisitions."The placing price was at a 17.7% discount to the closing middle market price of 60.75 pence per share on February 11th. The placing shares will represent 25.2% of the enlarged issued share capital.The share price fell 2.88% to 59p by 14:59.NR