Purification specialist Purifloh (ASX: PO3) has secured an exclusive global license for free radical generator technology developed by Somnio Global Holdings after converting a heads of agreement signed in December to a formal and binding licence agreement.
Purifloh now holds the rights to FRG technology as it applies to the treatment of water and fluids, air purification and disinfection, and biofilm disinfection and facility sterilisation.
Under the terms of the agreement, Somnio will provide ongoing technical and product development services through a research and development plan approved by Purifloh and designed to further develop FRG technology, its products and its processes towards commercialisation.
It will also include access to complementary technologies developed by Somnio which could enhance the performance of Purifloh’s product suite.
Purifloh is developing a suite of applications for Somnio’s FRG technology with a view to improving the safety of “what we breathe, what we drink and what we touch”.
FRG is believed to deliver powerful oxidising agents – such as ozone and hydroxyl ions – to eliminate a wide range of contaminants such as chemicals, hydrocarbons, viruses, bacteria and toxins typically found in contaminated air and water.
The most powerful of these is the OH radical, which offers a highly-reactive oxidation capability known for its effectiveness in purifying water and disinfecting surfaces and environments.
Heads of Agreement
The heads of agreement between Purifloh and Somnio included a payment structure based on royalties, alleviating any financial commitment in the early stages of FRG development and providing both companies with an incentive to move products to market as quickly as possible.
It also allowed Purifloh to retain the services of Somnio Global for technical, research and development support, to be paid at an agreed and discounted rate and including a one-off payment allowing Somnio to recover the discount, subject to the timely achievement of product performance outcomes.
Purifloh executive director Steve Annear said conversion of the heads of agreement to a licensing agreement ensures the company can “very confidently progress” FRG technology to potential customers in large global markets.
“The royalty agreement we have struck on the intellectual property, together with the terms of the technical services, deliver greater value and better align our commercial interests through [the] preservation of our solid cash balance as all upfront payments have been removed,” he said.
“Somnio has made considerable progress towards developing the FRG technology for commercial readiness and we look forward to [furthering this work].”
Earlier this month, Purifloh completed a landmark $9.6 million equity raising with a key cornerstone billionaire investor enabling it to initiate commercial development opportunities for FRG.
At mid-afternoon trade, shares in Purifloh were up 4.79% to $1.860.