Water Intelligence shares fell 0.6% to 810p in early morning trading on Tuesday after the company announced a $17 million expansion to its credit facilities.
According to the water solutions and infrastructure company, the investment will include an additional $15 million contributed to further acquisitions of its American Leak Detection franchises (ALOC), alongside a two-year extension on its $2 million working capital line.
Water Intelligence said that the $17 million expansion is set to complement the firm’s £12.5 million, which it raised from an equity placement in Q4 2021.
The group added that the financing would facilitate continued accretive growth in favour of all shareholders, due to the ALOC’s $15 million in non-dilutive capital to reacquire part of the estimated $100 million in profitable gross sales currently being executed within the company’s American Leak Detection subsidiary.
“We are pleased to deliver for shareholders an optimal corporate finance plan that blends debt and equity to reinforce accelerated growth at a lower cost of capital,” said Water Intelligence executive chairman Dr. Patrick DeSouza.
“The expansion of our credit facilities and launch of a relationship with M&T Bank, which has substantial additional capabilities, are very exciting.”
“Today’s bank transaction complements Q4’s expansion of our investor base with first-tier institutional funds.”
“We look forward to continuing to deliver strong results despite the volatility that currently characterizes the wider marketplace.”
“For the Group itself, market demand for water infrastructure solutions continues to be strong.”