Water Intelligence Raises GBP4.2 Million To Part Fund US Purchase (ALLISS)

7th Mar 2018 11:40

LONDON (Alliance News) - Water Intelligence PLC said Wednesday it raised GBP4.2 million through an oversubscribed share placing and subscription to part fund a USD1.7 million US acquisition.

The leak detection firm raised GBP3.6 million through placing of 1.9 million shares at a price of 195 pence each. A further GBP600,000 was raised via subscription of 325,166 shares at the same price.

In total, Water Intelligence issued 2.2 million shares in the fund raise. Of these, 151,184 were issued from treasury.

In addition, Executive Chairman Patrick DeSouza agreed to exercise 300,000 options over shares. These he will then sell to incoming investors at the same price as the placing. After the sale, DeSouza will hold 4.2 million voting rights, or 27.5% stake, in the firm.

Non-Executive Directors Michael Reisman and Laura Hills acquired shares under the subscription deal. Reisman acquired 7,379 shares worth GBP14,625 and Hills 22,136 shares worth GBP43,165. After the transactions, Reisman held 173,466 shares, or a 1.1% stake, and Hills 89,311 shares, or 0.6% stake, in the company.

Executive Director David Silverstone sold 38,500 share at the issue price - worth GBP78,075 - in order to settle tax liabilities. After the transaction, Silverstone holds no shares in Water Intelligence.

DeSouza said: "With this successful fundraise and the broadening of a high quality investor base on both sides of the Atlantic, we have all the components to create a valuable company: strong global demand for the critical problem of water loss and deteriorating infrastructure; a scalable multinational growth plan; and competitive advantages ranging from technology, to a USD90 million installed base of total franchisee and corporate sales and business to business channels, such as insurance, that leverage that sales footprint."

"And this round was complemented with an expanded credit facility that preserves equity value," DeSouza added.

"On behalf of our team, I am grateful for the support, not only from investors from our last round who are investing more, but also to our new investors with whom we can create value and share this journey."

Earlier on Wednesday, Water Intelligence said the proceeds would be used to accelerate its growth strategy. To this end, some of the proceeds will go towards its USD1.7 million acquisition of the Louisville, Kentucky-based American Leak Detection franchise.

After the placing - which expects to be admitted to trading next Tuesday - Water Intelligence will have 15.2 million shares outstanding. Of these, 13.9 million are ordinary shares and a further 1.4 million partly-paid shares.

Shares in Water Intelligence were 4.8% lower at 193.26 pence on Wednesday.

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