Modern Water slides on discounted share placing

Shares in Modern Water slid on Monday as the company said it has raised around £587,470 in a heavily-discounted placing.

A total of 9 million shares were placed at 6.5p each by Turner Pope Investments, while Modern Water placed 38,000 shares, also at 6.5p each. This marked a 20% discount to the closing share price of 8.10p on Friday.

The company also granted warrants to investors over 9m shares placed at a price of 9.75p and over 540,000 shares at 6.5p to a Turner Pope Investments nominee.

At 1250 GMT, the shares were down 19.8% to 6.50p.

Chief executive officer Simon Humphrey said: "We are delighted to receive additional support from new investors introduced by Turner Pope Investments. The net funds will be applied towards working capital, in particular increasing specific inventory in the pursuit of additional contracts and we look forward to updating the market of such in the near term.

"The company is looking to build on recent successes and momentum through a strategically placed regional office network and its partnership in China, which has already seen Sunup successfully commission the first AMBC pilot plant, using Modern Water technology, treating waste water from a power station."