Modern Water PLC Update Re: Membrane Division (4519G)
July 23 2019 - 8:27AM
UK Regulatory
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RNS Number : 4519G
Modern Water PLC
23 July 2019
23 July 2019
Modern Water plc
("Modern Water", "the Company")
Notices of intention to appoint an administrator for certain
subsidiaries
Modern Water, the owner of world-leading technologies for water
and wastewater treatment and for water quality monitoring,
announces that it is today filing notices of intention to appoint
an administrator ("Notices of Intention") in respect of two of the
Company's wholly-owned subsidiaries, being Modern Water Services
Limited ("MWSL") and Surrey Aquatechnology Limited ("ASL"). These
are the principal operating subsidiaries of the Company's Membrane
Division. The Company itself and other Group companies, including
the Company's Monitoring Division, based in the USA, are not
affected by these Notices of Intention and continue to trade
normally.
The issue of the Notices of Intention is a consequence of the
continuing shortfall in working capital as previously announced and
its effect is that an interim moratorium comes into force to allow
the specified companies (MWSL and ASL) some temporary protection
from creditors and legal claims whilst various options are explored
to seek alternative finance. The interim moratorium is for a period
of ten business days. The Notices of Intention do not in themselves
denote the appointment of administrators. The Board may at any
stage during this period decide not to appoint the administrators
if the situation can be resolved.
As previously announced, the Company is continuing to manage its
working capital carefully with the business being funded using
extended credit lines alongside increased efforts to convert
debtors to cash. Whilst this may be sustainable in the short term,
it is important that additional funding is secured in the near term
in order to provide a sustainable basis on which to continue to
operate the Group. The Company continues to explore options to
raise additional capital.
A further update will be issued as soon as there are any
material developments.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information:
Modern Water plc +44 (0) 1483 696 000
Simon Humphrey, Chief Executive
Cairn Financial Advisers LLP (Nominated Adviser) +44 (0) 207 213 0880
Sandy Jamieson / Tony Rawlinson
Ludovico Lazzaretti
Turner Pope Investments (Broker)
Andy Thacker +44 (0) 20 3621 4120
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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