- Fluence Corporation (FLC) has completed its share placement, with newly appointed strategic advisor, Doug Brown purchasing more than half of the shares in the capital raise
- Mr Brown has invested $2.7 million in newly issued shares at 21 cents
- The entire capital raise has new received firm commitments totalling almost $5.4 million
- Doug Brown’s history includes years of experience in the water industry, including assisting in the sale of two billion-dollar companies where he was either Chair or CEO
- The settlement of the new shares will take place today and tomorrow
- Fluence Corporation shares are trading grey at 24.5 cents at 11:22 am AEST
Fluence Corporation (FLC) has now officially completed its share placement, with the help of newly appointed strategic advisor and water industry veteran Doug Brown.
Mr Brown has invested $2.7 million in newly issued shares at 21 cents per share, making up more than half of the capital raise of $5.397 million.
The company says it has now received firm commitments for the issue of 25.7 million new shares, issued at 21 cents per share — a six per cent discount to the five day volume weighted average price of 22.5 cents.
Mr Brown’s background includes his role as the founder, Chair and CEO of AquaVenture Holdings, which was listed on the New York Stock Exchange (NYSE) in 2016, before the company was sold in 2020 to Culligan Water for $1.1 billion.
AquaVenture was one of two billion-dollar sales of water companies Mr Brown has been involved with. In 2005, he was CEO of NYSE-listed Ionics, which was acquired by GE water for $1.3 billion.
Mr Brown’s other notable credentials include CEO of Seven Seas Water, and CEO of private equity firm Advent International.
Mr Brown will receive 12.5 million time-vested stock options at a 10 per cent premium to the 10 day volume weighted average price, as part of his compensation for the strategic advisor role.
Fluence Chair Richard Irving said the company is “honoured” to have Doug Brown both advising and investing in Fluence.
“With two consecutive US$1 billion+ exits in an industry that is often very
conservative, Doug is uniquely aware that technology differentiation has the potential to enable unicorns in this industry,” Mr Irving said.
“Doug is one of the most successful water industry executives worldwide. We also see Doug’s purchase of a material equity stake in Fluence as a clear vote of confidence in our proprietary MABR technology and our growth potential.”
Mr Brown, meanwhile, said he was “excited” to now be assisting the company.
“As wastewater discharge standards continue to tighten, the demand for MABR based wastewater systems will grow significantly,” he said.
“The opportunity to build this business using a recurring revenue model is there and I’m confident that given my experience, I can contribute materially to Fluence’s success.”
The settlement of the new shares are due to take place on May 23 and 24.
Fluence Corporation shares are trading grey, at 24.5 cents at 11:22 am AEST.