30 Aug 2019 16:08
Modern Water plc
("Modern Water", "the Company" or "the Group")
Update re Restructuring
Further to the announcement of 6 August 2019, in which Modern Water announced its intention to appoint liquidators in relation to two of the Company's subsidiaries, namely Modern Water Services Limited and Cogent Environmental Ltd, the Company now confirms that the appointment of liquidators is effective as of today. Given the liquidation of Modern Water Services Limited, the contracts previously held by this entity will no longer be carried out, including the joint venture agreement with Northumbrian Water for the Gibraltar Wastewater Project, which has, in any event, been the subject of lengthy delays after the initial appointment of the joint venture as preferred bidder in 2014.
Instead, Modern Water will devote its management time and effort to its restructured innovative Membrane Processes Division.
The Company confirms that negotiations for the sale of the assets of Modern Water Inc., the US-based Monitoring Division, are ongoing and further updates will be issued as soon as there are any material developments.
A successful sale of the Monitoring Division would result in a significant strengthening of the Group's balance sheet and provide a solid base on which to support a more focused and efficient Membrane Processes Division, in which there is an encouraging pipeline of international development projects.
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The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
For further information:
Modern Water plc | +44 (0) 1483 696 000 |
Simon Humphrey, Chief Executive
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Cairn Financial Advisers LLP (Nominated Adviser) |
+44 (0) 207 213 0880 |
Sandy Jamieson / Tony Rawlinson Ludovico Lazzaretti |
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Turner Pope Investments Ltd (Broker) |
+44 (0) 203 657 0050 |
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Andy Thacker |
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Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.