Purifloh to develop Free Radical Generation technology through $9.6m equity raising
Purifloh has raised $9.6 million through placement of 4 million shares at $2.40 per share to key cornerstone investor, Upjohn Laboratories LLC of Michigan. Purifloh shares closed trade yesterday at only 50c.
Purification specialist Purifloh (ASX: PO3) has completed a landmark $9.6 million equity raising with a key cornerstone investor in the United States to initiate commercial development opportunities for its Free Radical Generator (FRG) technology.
The raising was achieved through the placement of 4 million Purifloh shares with Michigan-based Upjohn Laboratories, at a price of $2.40 per share representing a 380% premium on the company’s last trading price of $0.50/share.
It provides Purifloh with funding to accelerate commercialisation of the patent-pending FRG technology in the application of indoor air purification, water sanitation and surface sterilisation.
Upjohn is a family investment company owned by Michigan investor and businessman Bill Parfet, who will join the board of Purifloh on completion of the transaction.
Upjohn will also acquire 1,271,601 shares through an off-market transfer from Purifloh’s second largest shareholder, resulting in a total interest of 5,271,601 shares or 16.8% of the company.
FRG technology
Purifloh’s technology generates a range of ‘free radicals’ which are able to eliminate a wide range of contaminants such as chemicals, hydrocarbons, viruses, bacteria and toxins typically found in contaminated air and water.
FRG’s output can be engineered to produce ranges and combinations of radicals to cater to the requirements of a given application.
The most powerful of these – the OH radical – has a highly-reactive oxidation capability and is believed to be effective in purifying water and disinfecting surfaces and environments.
Compared to traditional systems, the technology is believed to be more effective against bacteria including gram-negative, gram-positive and antibiotic-resistant strains of pathogens, and also offers a safe and chemical-free solution with benign waste output.
Adoption hurdles
“The challenge for widespread adoption has been reliable and cost-effective production of the radicals themselves,” Purifloh said.
“The radicals have a short half-life and as a result they cannot be stored nor transported… to deploy and maximise the power of these radicals requires a robust, reliable and cost effective in-situ production system.”
The company said FRG-based systems have the flexibility to generate a “powerful range of radicals” which can be channelled as agents of purification and sterilisation.
Discussions have commenced with potential commercial partners.
“We are actively engaged with companies in the US who are showing strong interest in the capability and performance of this system,” Purifloh said.
“The value proposition and competitive advantage for FRG-based products in new and existing markets continues to strengthen.”
Air purification
Globally, indoor air quality is of increasing concern due to the negative health impacts from chemical, physical and biological contamination within occupied spaces.
FRG core technology has been developed to clean the air in occupied internal environments and has been shown to have a high rate of purification, targeting biological and chemical decontamination, and particulate removal (<0.3 microns).
It is able to decontaminate harmful airborne substances and is safe for use in all environments.
Surface Sterilisation
Healthcare-associated infections are also a major global health care problem and the numerous disinfection solutions on the market have limited success regarding effectiveness, kill rates, toxicity and cost.
FRG technology is used in a chemical-free device developed by Purifloh which is able to rapidly and fully-sanitise internal rooms and facilities particularly those within hospitals and medical facilities.
Water sanitation
Purifloh is working with Somnio in the development of water treatment products which are able to treat a range of sources, from recreational water and industrial waste to drinking water systems.
The company’s initial focus is a system for cleaning residential and commercial recreational pool water where FRG technology is able to be incorporated into systems and products of partner organisations.
The application will provide a launching pad for products targeted at broader water segments such as industrial waste water and clean, safe drinking water.
At mid-afternoon, Purifloh shares were trading 296% higher at $1.980.