9 Jul 2021 07:00
9 July 2021
Amiad Water Systems Ltd.
("Amiad" or the "Company")
Related Party Transaction
Amiad (AIM: AFS), a leading global producer of water treatment and filtration solutions, announces that it has selected Rimoni Industries Ltd ("Rimoni"), a previous supplier to the Company, as an additional outsourced supplier of polymer injection services. Rimoni is controlled by FIMI Opportunity Funds ("FIMI"), which is a controlling shareholder of Amiad.
The majority of the Company's polymer injection moulding is performed in-house, with the support from outsourced suppliers varying on demand. As a result of capacity constraints at its regular outsourced supplier, the Company has selected Rimoni as an additional supplier. Rimoni is a large-scale manufacturer that specialises in precise injection moulding for a wide range of industries.
Amiad expects that the total value of services that could be purchased from Rimoni over the course of 2021 is up to US$500,000 (the "Rimoni Purchases"), however this could be exceeded. Rimoni Purchases are made with terms in line with standard market practice and have been at competitive prices compared with the Company's regular supplier.
As FIMI is a substantial shareholder (as defined in the AIM Rules) of the Company, the Rimoni Purchases are classified as related party transactions under the AIM Rules. The independent members of the Board consider, having consulted with the Company's Nominated Adviser, Stifel Nicolaus Europe Limited, that the terms of the Rimoni Purchases are fair and reasonable insofar as the Company's shareholders are concerned. In accordance with Israeli Companies Law, the Rimoni Purchases received the approval of the Audit Committee of the Board and the Board of Amiad, respectively.
To the extent the total value of Rimoni Purchases exceeds the above expected level, a further announcement will be made.
Enquiries
Amiad Water Systems Ltd. | |
Dori Ivzori, Chief Executive Officer Relly Shimko, Chief Financial Officer | +972 4 690 9500 |
Stifel Nicolaus Europe Ltd. | |
Fred Walsh, Stewart Wallace | +44 20 7710 7600 |
Luther Pendragon | |
Harry Chathli, Claire Norbury | +44 20 7618 9100 |
About Amiad
Amiad Water Systems (AIM: AFS) is a leading global producer of automatic, self-cleaning water treatment and filtration products and systems. Through its engineering skills and ability to innovate, Amiad provides cost-effective "green" solutions for irrigation and industrial purposes. In these markets, its unique and high-quality products are being integrated into the core of systems for filtration and water treatment, micro irrigation and membrane protection, wastewater and potable water treatment, cooling systems and sea water filtration. Headquartered in Israel, Amiad provides these solutions through ten subsidiaries and a comprehensive network of distributors to customers in more than 80 countries.
FIMI Opportunity Funds, the leading private equity investor in Israel, is a controlling shareholder of Amiad, with an interest in 42.8% of the Company's outstanding issued share capital.
For additional information or product details, please visit www.amiad.com.