AFS.L Regulatory News (AFS)

22 November 2019

Amiad Water Systems Ltd.

("Amiad" or the "Company") 

Update on Potential Investment

Amiad (AIM: AFS), a leading global producer of water treatment and filtration solutions, provides an update on the potential investment outlined in its announcement of 11 September 2019 (the "September Announcement").

The Company has been notified by three of its substantial shareholders, FIMI Opportunity Funds ("FIMI"), A.M.SI. Investments (1997) Ltd ("AMSI") and Keren HaChoshlim - Agricultural Cooperative Society for Business Ltd. (together with AMSI, "HaChoshlim"), that they have entered into an agreement (the "FIMI/HaChoshlim Agreement") under which they support the transaction outlined in the September Announcement, whereby, amongst other measures and subject to receipt of the requisite regulatory and corporate approvals, FIMI would invest in the Company up to £17.6m through the placing of ordinary shares at a price of £2.30 per share, representing approximately 25% of the Company's enlarged issued share capital (the "Investment").

Under the terms of the FIMI/HaChoshlim Agreement, FIMI and HaChoshlim have agreed that, upon and subject to the completion of the Investment by FIMI, they will enter into the following transactions:

- FIMI will purchase 1,109,918 ordinary shares in the Company from HaChoshlim at a price of £2.30 per share (as mentioned in the September Announcement); and

- FIMI and HaChoshlim will enter into a shareholders' agreement.

The Company and FIMI have not yet entered into an agreement with respect to the Investment. If the Investment by FIMI in the Company is not completed by 30 September 2020, the FIMI/HaChoshlim Agreement will 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. In addition, the Company would seek to vary the terms of its current relationship agreement with HaChoshlim.

Further, the Investment by FIMI would constitute a related party transaction under Rule 13 of the AIM Rules for Companies and therefore the independent directors of the Company would need to consider, after consultation with the Company's Nominated Adviser, Stifel Nicolaus Europe, if the terms are fair and reasonable insofar as the Company's shareholders are concerned. No such determination has yet been made and the structure and terms of the transaction may need to alter from what is set out above and in the September Announcement.

In addition, there is no guarantee that all the required approvals will be obtained and that the Investment by FIMI in the Company will be made.

Amiad will update the market with respect to any investment in the Company as required in due course.

This announcement contains inside information for the purposes of the Market Abuse Regulation (596/2014/EU). Upon the publication of this announcement, this inside information is now considered to be in the public domain and such persons shall therefore cease to be in possession of inside information. The person responsible for arranging for the release of this announcement on behalf of the Company is Dori Ivzori.

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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 the 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.

For additional information or product details, please visit www.amiad.com.