WATR is a patented water monitoring device that can be deployed in remote locations to monitor quality.
- Combined target market size is estimated to be worth £4.29bn
- LOI for 108 devices with the opportunity for 1400+ more
- Patents filed in UK, USA, HK, EU & Worldwide (Granted in EU, HK)
- Applying for Future Fund, conditional - see Key Info
Learn more about convertible loan campaigns.
One million people die each year from water, sanitation and hygiene-related diseases.
According to a recent report from The Environment Agency, none of the 4,600 waterways in the UK met the required standards. In 2019, Southern Water was fined £120m for lack of transparency around water quality.
WATR, is a low-cost, easy to deploy, solar powered, multi-parameter solution that can be deployed in remote locations to monitor water quality. WATR communicates live data 24/7. Alerts/notifications can be set to enable early intervention to issues. Data is accessible by customers through our app or web portal.
Multiple communication modules (Sigfox, RF, Wifi, GSM), enable WATR to be deployed and send data from remote locations.
Example use cases:
- Reservoir water quality
- Drinking water quality management
- Fish farm monitoring
- River and Lake pollution warning
- Pond health monitoring
- Industrial pollution monitoring
- Agricultural pollution monitoring
- Bathing water quality
Substantial accomplishments to date
Raised £50,000 from an accelerator (2018).
Raised £300,000 from private investors. Funds were used for product development, trials and patent application (2020).
Letter of intent for 108 units to be installed in catchments and reservoirs. Potential for additional 1400 units to monitor up and downstream waste outlets.
Patents filed and granted in HK and EU. Patent is pending in UK, USA and Worldwide (PCT).
Our first product WATR is production-ready and has been installed at 12 sites already, some of these sites include: drinking water facilities, farms, fish farms, fisheries, waste water outlets, fashion factory waste water.
We have developed a roadmap for further three products for application in various water conditions and use cases.
Project with Anglian Water to monitor water quality issues at various locations for different use cases.
Product selected by Northumbrian Water as part of their Ofwat Innovation Fund application.
In discussions with three UK other water utility companies, with RFI from Australia Water Corp.
Hardware - Our standard WATR device has a setup fee from £1600 paid upfront. Depending on the application requirement, we can add additional probes/sensors at 20% gross margin.
In the future, we plan to introduce products such as Roving WATR that can move around and monitor an area of still water; and Auto Deployment WATR that can automatically test the water at a predetermined water depth.
Customers are also expected to pay a data plan subscription of £50pm for each connected device. For that price, they will have access to our WATR dashboard, on a mobile app or on web and maintenance and support. After the end of the one-year in-water-lifespan, customers can return us the device to swap for a new device. The returned device will be cleaned and recalibrated for another customer.
Custom Installation Service - our engineers will travel to the site and install the Watr hardwares
API customisation - for bespoke integration with clients data dashboard services and hardware devices.
Use of proceeds
Funds will be used for:
Manufacture and assembly of 500 devices - 40%
Product roadmap developments - 10%
Hire of key business plan roles: Sales Manager, Installation Manager, Firmware Developer - 20%
Ramp up of production facilities - 10%
Strengthen the board with Non-executive directors - 5%
Further IP - 5%
Current salaries and overheads will be covered by current company income.
Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Seedrs is supporting companies who are intending to apply to the Government backed Future Fund. You can read more about the Future Fund here: https://www.seedrs.com/learn/blog/the-future-fu...
In order for a company to be eligible to seek matched funding from the Future Fund, this investment round must be on the convertible loan terms that have been prescribed by the Future Fund for this purpose. These terms differ to our normal ‘advanced subscription agreements’.
Given this product differs from most campaigns on Seedrs, we urge all investors, including regular Seedrs investors, to read the information below and ensure you understand the terms in full before making your investment.
You will see a term sheet attached to this Campaign in the Documents section which sets out the key terms of the convertible loan and you can see the full document prescribed by the Future Fund here: https://www.british-business-bank.co.uk/ourpart...
A summary of the key terms is set out below, but should be read in conjunction with the term sheet:
Interest: 8% per annum, non-compounding. On conversion events, the company can choose to repay the interest or convert it to equity (generally without the discount). See the Term Sheet for more details.
Redemption Premium: An amount equal to 100% of the principal loan amount.
Valuation Cap: £15m
Qualifying Equity Financing. The convertible loan will automatically convert on an equity financing raising at least the total loan amount, at the lowest share price of equity financing less the Discount. Or, if lower, at the Valuation Cap share price.
Maturity Date: 36 months from signing convertible loan agreement.
The default position is on the maturity date is that the loan will convert to equity unless the investor majority elect to redeem.
If redeemed, the company will repay the principal together with the Redemption Premium.
If converted, the conversion price will be at the most recent funding round share price less the Discount, provided that funding round happened after 20 April 2020 and was at least a quarter of the size of the convertible loan investment. If no such funding round has occurred, conversion will be at the share price of the last funding round prior to 20 April 2020 (no Discount).Or, if lower, at the Valuation Cap share price.
Other events of default or conversion: There are various other scenarios in which the convertible loan may convert or be repaid and investors should reference the term sheet:
Non Qualifying Funding Round: The convertible loan can convert on an equity financing round which does not meet the size criteria of a ‘Qualifying Equity Financing”, at the election of the majority of investors under the loan. Please see the term sheet for how this conversion is priced.
Exit: The convertible loan will automatically convert or be redeemed on an Exit, whichever would give investors the higher cash return. Please see the term sheet for how conversion is priced and payments on redemption in this scenario.
Events of Default: The convertible loan is to be repaid on the events of default, such as liquidation or winding up. See the term sheet for more details.
Government matched funding
The company intends to apply to the Future Fund for matched funding on the total eligible amount invested in this funding round. Subject to eligibility criteria and the Future Fund's approval, the Future Fund will “match” the funding raised via Seedrs or other eligible sources, subject to a minimum investment of £125,000 and a maximum investment of £5m.
This campaign is conditional upon receiving matched funding from the Future Fund. Seedrs will not complete the investment and transfer the funds raised until we have confirmation that the Future Fund matched funding application has been approved and that the Future Fund is ready to make the investment. If the application is denied, the campaign will be cancelled and funds will be returned to investors.
Because this campaign is conditional upon the matched funding, you will see that we have reflected the Future Fund investment as part of the round. This is to give investors an indication of the potential total size of the funding round (and potential dilution on conversion).
Seedrs does not charge any fees in relation to the Future Fund matched funding, application process or for acting as lead investor with respect to applications.
Conversion to equity
The convertible loan agreement prescribed by the Future Fund is equity focused and favours conversion of the loan to equity as the default position.
Redemption is only available in certain scenarios and is often subject to the vote of majority of the investors. Where a vote of investors is required, Seedrs will vote on behalf of any investors it represents as nominee.
There is a possibility that the convertible loan will convert in some scenarios without the consent of Seedrs (if we do not make up a majority of investors). It is also Seedrs’ position that this is primarily an instrument for investing in the equity of the fundraising business and our default position would be to vote in favour of converting the loans to shares in the company, unless there is a clear or compelling reason not to.
As always, investors should be aware of and accept the risks involved in investing in early stage and growth focused businesses: https://www.seedrs.com/pages/risk-warnings
In addition to the usual risk warnings included above, investors should be aware of and accept the following with respect to convertible loans:
The convertible loan agreement is intended as bridge funding to a future funding round, but there is no guarantee that a company will be able to secure further funding.
The Future Fund is to be allocated on a ‘first come, first served basis’ and there is no guarantee that a company will be successful in its application to receive the Future Fund matched funding.
There is a risk that the Company may not have sufficient funds to repay the loan on the maturity date, pay interest when it becomes due or pay the redemption premium included in the terms.
Convertible loans are unsecured obligations and in the event of a winding up or liquidation event will rank behind secured creditors of the Company.
Investors will not be able to sell their interest in the convertible loans on the Seedrs Secondary Market unless and until they have converted to shares in the company (and then only subject to eligibility and the terms and conditions of the Seedrs Secondary Market).
EIS Relief - past, current and future
As noted above, the convertible loan instrument is not compatible with EIS requirements, so no EIS applications will be made with respect to investments in the convertible loan.
The government has confirmed that investing in the convertible loan will not impact EIS relief previously claimed on investments in the fundraising company:
“The government has confirmed that such previous investments will not be affected where the convertible loan converts into shares. Where the convertible loan note redeems, we have been alerted that the government intends to make changes to the rules to clarify that this is compatible with such previous investments.”
However, investing in a convertible loan could impact your ability to claim EIS relief on future investments into the same company. The government has not clarified the position on this and has said it is a matter for HM Treasury and HMRC.
Seedrs is unable to provide tax advice. Tax treatment depends on individual circumstances and is subject to change.
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