IP : Modern Water plc - Oversubscribed £1.85 million Conditional Placing of 370,000,000 new Ordinary Shares at a price of 0.5 pence per share, Proposed Board Changes, and Notice of General Meeting

Modern Water plc (AIM: MWG), the pioneering and innovative technology company, specialising in membrane water treatment solutions and advanced monitoring products, announces that it has conditionally raised £1.85 million, before expenses, by way of an oversubscribed placing (the Placing) of 370,000,000 new Ordinary Shares (the Placing Shares) at a price of 0.5 pence per share (Placing Price). The Placing is subject, inter alia, to approval by Shareholders at a General Meeting.

Highlights:

• The net proceeds of the Placing, amounting to approximately £1.68 million, will be used for working capital purposes and to repay Group debts.
• The Placing Price represents a discount of approximately 60 per cent to the closing mid-market price of Modern Water's existing Ordinary Shares of 1.25 pence on 23 January 2020.
• The Placing Shares represent approximately 297 per cent of the Company's existing issued voting share capital.
• Turner Pope Investments (TPI) Limited (TPI), the Company's broker, has introduced new cornerstone investors and arranged the Placing, which was significantly over subscribed. In addition to a cash commission, TPI will receive 2,000,000 Ordinary Shares at the Placing Price (Placing Fee Shares) for its services and will also be granted 92,500,000 non-transferable subscription warrants (Broker Warrants) exercisable at 0.5 pence per Ordinary Share during the three-year period following Admission.
• Subject to completion of the Placing and the satisfactory completion of regulatory due diligence checks, Gerard Brandon will join the Board as Non-Executive Chairman and Nigel Burton will join the Board as a Non-Executive Director, at which time Michael Townend and Piers Clark will step down from the Board.
• Further to the RNS announcement of 30 August 2019 the sale of the Company's Monitoring Division is now halted and, subject to a review by the new Board and management on completion, may play a pivotal role in an amended business model.

The Placing is subject to the passing (without amendment) of each of the Resolutions at a General Meeting of the Company which it is expected will be convened for 10.00 a.m. on 14 February 2020 at the offices of the Company's legal advisers Michelmores LLP at 12th Floor, 6 New Street Square, London EC4A 3BF. Provided that the Resolutions are passed and the Placing has otherwise become unconditional, completion of the Placing and Admission of the Placing Shares is expected to take place on 17 February 2020.

Simon Humphrey, Modern Water's CEO, commented:

'We are delighted to receive substantial support from a number of new and existing investors introduced by TPI. The net funds from the Placing will allow us to address all of our outstanding liabilities, provide working capital to alter the business model to drive increased revenues by collaborations and revenue sharing opportunities that build and extend our existing sales, marketing and distribution channels.'

A Circular and a Notice of General Meeting will be posted to Shareholders shortly and will then be available on Modern Water's website, www.modernwater.com.

Contacts:

Modern Water plc	[phone]
Simon Humphrey, Chief Executive
Cairn Financial Advisers LLP (Nominated Adviser)	[phone]
Sandy Jamieson/Tony Rawlinson Ludovico Lazzaretti
Turner Pope Investments (TPI) Limited (Broker and placing agent)	[phone]
Andy Thacker / Zoe Alexander

Notes to editors:

Modern Water is a pioneering and innovative technology company, specialising in membrane water treatment solutions and advanced monitoring products. The Company works for customers in a range of industries across the globe and owns proprietary technologies for use in a diverse range of applications. Modern Water's Monitoring Division has a portfolio of world-leading toxicity and trace metal monitoring products, some of which constitute the regulatory standard. The headline technology of the Company's Membrane Division, called 'AMBC', can be used to tackle complex wastewater treatment problems at a reduced cost compared to standard processes, while being simple to operate.