Water Intelligence launches successful fundraising to cover US acquisition

Leak detection and remediation services provider Water Intelligence raised approximately £4.2m on Wednesday as part of an oversubscribed placing and subscription through the issue of more than 2.1m new ordinary shares to fund the purchase of American Leak Detection, a franchise based in Louisville, Kentucky.

The fundraising comprised a placing of 1,846,154 new ordinary shares to raise £3.6m, as well as a subscription of 325,166 ordinary shares to raise a further £600,000.

Additionally, Dr Patrick DeSouza, executive chairman of Water Intelligence, exercised 300,000 options over ordinary shares on Wednesday to sell the shares at the issue price of 195p and meet demand from investors.

Water Intelligence entered into an agreement to purchase the American Leak Detection franchise and has increased its committed working capital debt facilities from People's United Bank to a total of $2m, of which $1.75m was still available.

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 $90 million installed base of total franchisee and corporate sales and business to business channels, such as insurance, that leverage that sales footprint."

As of 1040 GMT, shares had declined 4.80% to 193.26p.