15th Mar 2018 12:04
LONDON (Alliance News) - Water Intelligence PLC said Thursday it acquired its franchise in California for USD252,000 shortly after raising GBP4.2 million in a placing to fund a number of acquisitions.
The leak detection firm acquired the franchise in "major" US agricultural centre Bakersfield, California.
"We are excited by the Bakersfield opportunity," Water Intelligence Executive Chairman Patrick DeSouza said. "This territory was under-exploited by our American Leak Detection franchise operation relative to its geographic size and demand for solutions to water loss."
In 2017, sales amounted to just USD180,000 and Water Intelligence expects to expand the operations in the area "rapidly given the size of the opportunity."
"With a critical mass of corporate-operated resources and the added leadership of one of our strongest franchise owners, we see a lot of upside starting immediately. American Leak Detection can now make a difference in an important region for the US economy. Moreover, given the reality of waste as a by-product of agribusiness, and California's leadership on environmental matters, this area will also be an ideal location to develop our newly announced renewables line."
Water Intelligence said the Bakersfield buy was one of the deals it discussed when it raised GBP4.2 million through the issue of 2.2 million shares at 195 pence each. The company said at the time that the proceeds would be used to accelerate its growth strategy. To this end, some of the proceeds were ear-marked for its USD1.7 million acquisition of the much larger Louisville, Kentucky-based American Leak Detection franchise.
Shares in Water Intelligence were 4.8% lower at 200.00 pence on Thursday.
Related Shares:
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