Modern Water : Update re Restructuring

RNS Number : 7745K

Modern Water PLC

30 August 2019

Modern Water plc

("Modern Water", "the Company" or "the Group")

Update re Restructuring

Further to the announcement of 6 August 2019, in which Modern Water announced its intention to appoint liquidators in relation to two of the Company's subsidiaries, namely Modern Water Services Limited and Cogent Environmental Ltd, the Company now confirms that the appointment of liquidators is effective as of today. Given the liquidation of Modern Water Services Limited, the contracts previously held by this entity will no longer be carried out, including the joint venture agreement with Northumbrian Water for the Gibraltar Wastewater Project, which has, in any event, been the subject of lengthy delays after the initial appointment of the joint venture as preferred bidder in 2014.

Instead, Modern Water will devote its management time and effort to its restructured innovative Membrane Processes Division.

The Company confirms that negotiations for the sale of the assets of Modern Water Inc., the US-based Monitoring Division, are ongoing and further updates will be issued as soon as there are any material developments.

A successful sale of the Monitoring Division would result in a significant strengthening of the Group's balance sheet and provide a solid base on which to support a more focused and efficient Membrane Processes Division, in which there is an encouraging pipeline of international development projects.

--Ends--

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

For further information:
Modern Water plc	[phone]
Simon Humphrey, Chief Executive

Cairn Financial Advisers LLP (Nominated	[phone]
Adviser)
Sandy Jamieson / Tony Rawlinson
Ludovico Lazzaretti
Turner Pope Investments Ltd (Broker)	[phone]
Andy Thacker

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

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 [e-mail] visit www.rns.com.

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