Direct Investment of US $11.0 million Anchored by Large US-based Institutional InvestorFluence Corporation (
The Private Placement will help satisfy several of Fluence's stated objectives, including a steady transformation of the Company's share register towards a more global investor base, attracting high-quality US-based funds in anticipation of a future potential listing on a U.S. stock exchange and providing working capital to fund new growth opportunities.
"We are pleased to welcome these investors to Fluence," said Executive Chairman Richard Irving. "The global water sector is an estimated US$700 billion annual market and we are delighted that one of the world's largest and most respected financial institutions has put their confidence in Fluence as a promising growth company in the sector. We hope this initial investment will be a stepping stone for future support from this, and other high-quality funds."
Henry Charrabe, Managing Director & CEO of Fluence noted, "Fluence has emerged as one of the leaders in the fast-growing decentralized water, wastewater treatment and waste-to-energy markets, an estimated US $13 billion annual market that is expected to grow to US $22 billion a year by 2021 (see Note below). Fluence's wide array of water products and services position the Company to become one of the largest providers to this segment for years to come. This strategic investment provides Fluence with additional flexibility over the coming year, to target, and rapidly deliver on further growth opportunities as they materialize."
With approximately US $48 million cash on hand, the Company is well positioned to fund its ongoing operational and global strategic needs, and to source additional off-balance-sheet financing as and when such opportunities arise. Fluence was advised on the Private Placement in the USA by EAS Advisors LLC, acting through Odeon Capital Group, LLC, a member of FINRA/SIPC/MSRB ("EAS") and Henslow in Australia.
Statutory Information required for ASX
The Company provides the following information as required under ASX Listing Rules 7.1A.4(b) and 3.10.5A, as these ordinary shares are being issued under the Company's 10% placement capacity under Listing Rule 7.1A:
(a) The dilutive effect of the placement on existing shareholders is as follows:
------------------------------------------------------------------- Share Percentage (%) Number of shares on issue prior to Private Placement 376,339,166 95.8 Dilution as a result of issues under Listing Rule 7.1A 16,309,001 4.2 Number of shares on issue following Private Placement 392,648,167 100% -------------------------------------------------------------------
(b) The Company issued the shares in Private Placement under ASX Listing Rule 7.1A based on the view that the placement would be an efficient and expedient mechanism to enhance the institutional component of the Company's share register (particularly through the addition of another cornerstone investor) while raising further funds to assist the Company in achieving its stated objectives.
(c) No underwriting arrangements were in place in respect of the Private Placement.
(d) The Company was advised on the private placement by EAS in the USA and Henslow in Australia. The Company will pay a total cash fee of 5% of the funds raised to EAS Advisors and Henslow in connection with the Private Placement.
Note: Source: MarketsandMarkets Analysis, Global Water Intelligence and company estimates
About Fluence Corporation Ltd
Fluence Corporation (ASX:FLC) (OTCMKTS:EMFGF) has experience operating in over 70 countries worldwide and employs more than 300 highly trained water professionals around the globe. The Company provides local, sustainable treatment and reuse solutions, while empowering businesses and communities worldwide to make the most of their water resources.
Fluence offers an integrated range of services across the complete water cycle, from early stage evaluation, through design and delivery to ongoing support and optimization of water related assets. With established operations in North America, South America, the Middle East and Europe, Fluence is also expanding into China's rural wastewater treatment market.
Global consultancy Frost and Sullivan recently awarded Fluence Corporation "2018 Global Decentralized Water and Wastewater Treatment Company of the Year", noting in their award dissertation:
"While typical decentralized water treatment systems are relatively expensive, complicated, and inefficient, Fluence Corporation leverages innovative and smart technology solutions backed by decades of industrial know-how to excel in water and wastewater treatment solutions. Fluence's excellence becomes apparent through its success, as the company continues to expand its existing offerings as well as partnerships with other prominent companies in the industry. With its easy to use, sustainable, smart and cost-effective solutions as well as a remarkable year of growth, innovation, and leadership, Fluence Corporation earns Frost & Sullivan's 2018 Global Company of the Year Award in the decentralized water and wastewater treatment industry."
Further information can be found at http://www.fluencecorp.com/
ContactFluence Corporation Limited
President & CEO
Gary Dvorchak, CFA
Blue Shirt Group
Company Secretary & Advisor to the Board
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