Rubicon Water's $16.0 million funding and operational update

Rubicon Water Limited (ASX: $RWL) has successfully secured firm commitments for a fully underwritten two tranche placement of approximately 64.0 million new fully paid ordinary shares at a price of $0.25 per share, raising $16.0 million. The placement was supported by new and existing institutional and high net worth investors, along with commitments from Rubicon's board and key management personnel. The net proceeds will be used to reduce debt and provide future facility headroom for working capital requirements generated from the pipeline of international growth projects. Rubicon intends to undertake a non-underwritten Share Purchase Plan offer to raise up to a further $2.0 million.

Executive Commentary on Funding and Growth Strategy

We are delighted with the support we have received from new and existing investors, which demonstrates confidence in our near-term global growth opportunity. Having worked through the challenges of recent years, we are sharply focused on leveraging our established long term customer relationships in key markets and delivering on Rubicon's significant and exciting project pipeline over the coming months and years.

Summary of Rubicon Water's Funding and Operational Update

Rubicon Water Limited (ASX: $RWL) has successfully secured firm commitments for a fully underwritten two tranche placement to raise $16.0 million, supported by new and existing investors. The net proceeds will be used to reduce debt and provide future facility headroom for working capital requirements generated from the pipeline of international growth projects. The company also intends to undertake a non-underwritten Share Purchase Plan offer to raise up to a further $2.0 million. In FY24, Rubicon secured a record $33 million of orders in the US market, reflecting a positive growth outlook. The company's full year FY24 underlying EBITDA guidance range reflects a loss of between $5.3 million and $5.8 million after adjustments. Rubicon's preliminary unaudited cash flow position for FY24 remains subject to Board approval and may change. The impact of the Placement on Rubicon's pro forma debt position will result in a reduction in pro forma net debt as at 30 June 2024 from ~$31.2 million to ~$15.2 million, providing further financial flexibility and headroom to support the working capital requirements of Rubicon's pipeline of international growth projects.