Fluence has raised A$33.1m ($23.45m) through a share placement of ordinary shares to global and domestic sophisticated, professional and other institutional investors, and will also conduct a non-underwritten Share Purchase Plan (SPP).
Image: A wastewater treatment facility. Photo: courtesy of sherry wil/FreeImages.com.
Fluence managing director and CEO Henry Charrabé said: “We are delighted that this capital raise was anchored by several large, well-known and high-quality US-based institutions.
“Furthermore, we were gratified to see the participation from several existing shareholders, including our major shareholder RSL Investments Corporation, who have joined us on this journey of rapid growth since our merger 15 months ago.
“The high calibre of the four new anchor US-based institutions joining our share register reflects the global capital market’s confidence in Fluence’s technologies, solutions, global market position, and growth pathways.
“There is growing global recognition of Fluence’s ability to deliver the most cost effective and convenient water and wastewater treatment solutions whilst meeting environmental specifications, which is driving increased demand for our products and services.
“The proceeds from this capital raising put us in a stronger financial position to meet this growing global demand and to generate further sales growth. Together with the management and the board, I am excited about Fluence’s global growth prospects.”
Fluence is experiencing a period of rapid and sustained growth in demand for its innovative, cost-effective decentralised water, wastewater and reuse solutions for businesses and communities around the world, and this capital raising underpins the Company’s global growth plans by supporting:
working capital to fund business growth in China for MABR and SUBRE based sales
the equity component of potential Build Own and Operate projects
general working capital for the business.
US-based investors anchored this capital raising, reflecting the growing North American interest in the Company’s execution of a global water and wastewater treatment solutions strategy. In addition, the growing interest in MABR sales to the US represents a key market opportunity.
As the business continues to grow in scale, the Board intends to undertake detailed planning in 2019 for a potential dual listing in North America at an appropriate time in the future.
Ardsley Advisory Partners partner Ben Block said: “We are pleased to invest in a dynamic water treatment company like Fluence. While it has been a challenge for us to identify North American-listed water infrastructure companies, our extensive diligence on Fluence and its unique competitive positioning vis-à-vis MABR has suggested that it is a perfect fit in our portfolio. We look forward to helping the Fluence team gain broader exposure in the North American market.”
Ronald Lauder, on behalf of RSL Investments, said: “I am pleased to see that Fluence’s strategy as a global water solutions provider in the decentralized water and wastewater market is showing such promise, underpinned by very strong top line year on year growth. This is the rationale that drove the decision to merge RWL Water with Emefcy a little over a year ago.
“I am especially pleased to see that the company’s stated goal of building a strong pipeline of packaged plants in China and other water stressed markets such as North Africa and the US is bearing fruit. That is why I remain such a strong supporter of Fluence and its management team.”
Placement details
Fluence has successfully completed a share Placement to institutional, sophisticated and professional investors, raising A$33.1 million (before costs). The Placement was strongly supported by existing investors as well several new high quality offshore and Australian institutional and sophisticated investors.
The Placement comprised an offer of approximately 89.5 million fully paid ordinary shares (Shares) in Fluence at an issue price of A$0.37 per share. Of this, 45,768,479 shares were issued under ASX Listing Rule 7.1 capacity and 43,686,816 shares were issued under ASX Listing Rule 7.1A capacity.
The issue price represented a discount of 16% to the 15-day VWAP of A$0.44 prior to the trading halt on 26 October 2018.
New shares issued under the Placement will rank equally with the Company’s existing ordinary shares on issue. The Placement of these new shares will be within the Company’s ASX Listing Rule 7.1 and 7.1A capacity available for issue.
Settlement of the Placement is scheduled to take place on Friday 2 November 2018, with allotment and quotation of shares expected to occur on ASX on Monday 5 November 2018.
Fluence was advised by Canaccord Genuity (Australia) Pty Limited as Lead Manager and Bookrunner, Odeon Capital Group LLC on behalf of EAS Advisors LLC as Co- Manager, Lander & Rogers, and Market Eye.
Source: Company Press Release