AFS.L Regulatory News (AFS)

23 July 2021

Amiad Water Systems Ltd.

("Amiad" or the "Company") 

Update on Transfer of Listing to TASE

Further to the Company's announcement of 23 June 2021 and the circular posted to shareholders on that date (the "EGM Circular"), Amiad (AIM: AFS), a leading global producer of water treatment and filtration solutions, provides the following update on the proposed admission of the Ordinary Shares of the Company to trading on the Tel Aviv Stock Exchange (the "TASE Listing") and the proposed cancellation of the admission of the Company's Ordinary Shares to trading on AIM (the "AIM Cancellation").

The Company expects to receive approval for the TASE Listing from the Israeli Security Authority and from the Tel Aviv Stock Exchange ("TASE") in the coming weeks and anticipates that the TASE Listing will occur in the second half of August 2021.

Pursuant to Rule 41 of the AIM Rules, the Company (through its nominated adviser, Stifel Nicolaus Europe Limited) has notified the London Stock Exchange of the date of the proposed AIM Cancellation, being 26 August 2021. The Directors expect that the Company's trading facility on AIM will therefore be cancelled with effect from 7.00 a.m. on 26 August 2021.

As set out in the EGM Circular, the AIM Cancellation remains conditional upon (i) both the approval by shareholders of the resolution approving the AIM Cancellation to be proposed at the Company's Extraordinary General Meeting ("EGM") scheduled for 29 July 2021, (ii) the TASE Listing and (iii) the AIM Cancellation taking place within three months of the passing of that resolution.

Reasons for the proposed AIM Cancellation

As set out in the Company's announcement of 23 June 2021, the Board of Directors (the "Board") has undertaken a review of the merits or otherwise of the Company continuing to be admitted to trading on AIM and has concluded that a proposal for the AIM Cancellation should be made to shareholders at the EGM. In reaching their decision to propose this to shareholders, the Directors have taken the following factors into account:

· the Company's operations are principally located in Israel and its management is based in Israel. The Directors are of the view that additional interest may be drawn from investors resident in Israel due to an increased knowledge of the Company, its industry and the market in which it operates. The Board considers that this stronger understanding of the Company and its industry will, in the future, make the raising of further capital easier to achieve on terms acceptable to the Board and/or favourable to the Company and in the best interests of the Company and the shareholders as a whole;

· the Board believes the TASE Listing will further consolidate the Company's market position whilst also enhancing the Company's corporate profile, credibility, brand awareness and market status within its home state of Israel;

· based on the above, it is not considered worthwhile for the Company to incur the additional costs of maintaining a dual listing status on AIM and TASE, which would (i) be likely to result in a division of liquidity between the two markets, divert the Company's resources and partly negate the benefit of listing on TASE and the potential benefits to the valuation of the Ordinary Shares; and (ii) entail additional compliance costs, as well as management time, as the Company would have to comply with two sets of regulatory and disclosure requirements; and

· the Board believes a TASE Listing would be better aligned with the Company's business development strategies and beneficial to the Company and the shareholders as a whole.

Trading in the Ordinary Shares of the Company following the AIM Cancellation

As the AIM Cancellation is conditional on the TASE Listing, the Company's Ordinary Shares will remain freely transferable pursuant to the Company's Articles of Association and, following the TASE Listing, will be capable of being traded through TASE. However, the Ordinary Shares may, for certain investors, be more difficult to sell compared to shares of companies traded on AIM.

Following the AIM Cancellation, the depository interest structure will be cancelled and it will not be possible to hold depository interests in CREST. Shareholders will also no longer be able to hold their Ordinary Shares in physical certificated form following completion of the TASE Listing. Further details are set out in the EGM Circular.

Depositary interest holders will shortly be receiving a letter from Link Market Services Trustees Limited in relation to the termination of the depositary interest facility with effect from the date of the AIM Cancellation. Depositary interest holders are strongly encouraged to read that letter and to take any action suggested within it.

The Company will update the market in due course.

This announcement contains inside information for the purposes of the Market Abuse Regulation (596/2014/EU) as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. The person responsible for arranging for the release of this announcement on behalf of the Company is Dori Ivzori, Chief Executive Officer.

Enquiries

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.