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Bluewater Bio International
- BY: Andrew Hore |
- POSTED: 29/07/2008 |
Lehman Brothers is investing £2m in Bluewater Bio International
The placing will be in two tranches because the waste water treatment comapny will have to gain shareholder approval to issue most of the shares. Lehman will invest £324,000 at 4.5p a share. The other £1.676m will be invested at the average share price for the five trading days before the EGM on 21 August. The maximum share price for the second placing will be 9p.
Bluewater shares rose 1.25p to 6.5p each following the news of the share placing. Bluewater raised £2.775m (£2.31m after expenses) at 12.5p a share in a placing that accompanied its admission to AIM on 13 December 2007.
Lehman already owns 6.3% of Bluewater and that will increase to 9.3% before the second tranche of the placing.
Bluewater says it will need more cash if it is to take advantage of the medium-term potential for its waste water treatment. It will be asking for shareholder approval at the EGM to issue more shares.
Cayman Islands-based Bluewater Bio International has developed a biological solution to the treatment of waste water called HYBACS. It can remove organic matter and odours as well as more e-coli bacteria than other competing technologies.
The process encourages Bacilli bacteria to grow within the biomass in the system and this helps to destroy a range of substrates. The origins of this treatment go back almost two decades and Bluewater employs the team who originally developed the technology behind HYBACS. HYBACS can also be retrofitted to existing plant. The technology can be used on livestock wastewater and the effluent from, among others, breweries, food processors, textile manufacturers, hospitals, factories and residential developments
The treatment can take place at low temperatures and uses less energy than many rivals. The resulting water can be used for irrigation although it may require additional disinfection if it is used with crops that will be eaten raw. The sludge separated from the water can be dumped in landfill or burnt. It can, in many cases, be used as fertiliser but it will require further treatment.
The company was formed through the acquisition of a number of companies which owned certain intellectual property related to HYBACS and had experienced employees familiar with the technology.
Bluewater has changed the focus of its strategy and is concentrating more on the municipal waste water market. This involves the use of pilot plants and that is why the company requires more cash.
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