Equity raising of A$9.6 million concludes
Purifloh Limited (“Purifloh” or “Company”) has recently announced the investment of A$9.6 million through the issue of 4 million shares at a price of $2.40 per share to Michigan businessman, Mr Bill Parfet, through an investment arm of his family office, Upjohn Laboratories LLC (“Upjohn”).
In addition, Upjohn has also acquired 1,271,601 shares in an off-market transfer from Purifloh’s second largest shareholder, to take its total holding to 5,271,601 shares, or 16.8% of the expanded issued capital of the Company.
Commensurate to this investment, Mr Parfet has agreed to join the Board of Purifloh, bringing a long, successful and storied career to assist the company in the execution of its commercialization strategy. This appointment has been unanimously welcomed by the Board. Mr Parfet currently serves as the Chairman and CEO of Northwood Group, which includes the investment arm of his family office, having recently retired from numerous public company positions. He served as Vice Chairman of the Board of the Upjohn Company where he was also President (1991-1993) and Executive Vice President (1989-1991). Mr. Parfet joined The Upjohn Company (now recognized as Pfizer) in March 1973 and was a member of the Board of Directors from 1985 through 2003. He also served as the Independent Lead Director for Stryker Corporation, Director for Monsanto Company, Director for Consumers Energy, and Director for Taubman Company. Most recently he served as the Executive Chairman of inviCRO LLC in Boston which was sold to Konica Minolta in 2017.
From the funds received by Purifloh, there is an introductory fee of 3% to be paid to an independent party not associated with the Company’s Technology Partner, Somnio Global Inc. (“Somnio”), resulting in net funds to Purifloh of A$9.312 million.
Purifloh now has the required funding to accelerate its strategy to fully commercialize the FRG technology.
The company aims to:
- Commercialise the three lead Free Radical Generator (“FRG”) applications through manufacturing and licensing strategies. As previously announced, the Company is involved in discussions with significant commercial partners. Further updates will be provided as these discussions evolve and as commercial non-disclosure agreements allow;
- Establish the Company’s main operating base in Michigan to:
- provide immediate access to the largest market for the Company’s products; and
- utilise the world class manufacturing base of the region.
- Develop and release new FRG products to provide a continuous long-term pipeline of product releases and revenue opportunities;
- Further develop its long-term relationship with Somnio to provide Purifloh with ongoing access to technologies with global imFipact that address some of the world’s most important health issues; and
- Provide longer term growth through recognizing, developing and commercializing other world class and disruptive technologies in the environmental arena.
Purifloh will now commence resourcing the company including the employment of key personnel primarily in the USA where the Company’s operational base will be established. The corporate and administrative cost base will be kept efficient and effective to focus on product development and completion of initial licensing agreements. This process has commenced through the recent establishment of a subsidiary in the United States, Purifloh, USA Inc., located in Detroit, Michigan.
Purifloh already has a presence in Michigan through its relationship with Somnio and the domicile of its Executive Director, Mr Steve Annear. Purifloh believes Detroit, Michigan, to be a superior location to establish its operations as it:
- is within the world’s largest market for the Company’s products;
- provides access to superior product engineering and manufacturing skills, and associated skilled labour, allowing Purifloh to manufacture of its core technology, the FRG system;
- has excellent infrastructure and immediate access to markets;
- includes a willingness from both Local and State Government to regenerate the manufacturing industry within Detroit and encourage a workforce back into the city.
The Upjohn investment will now accelerate the Company’s progress in the commercialization of the FRG based applications. The Company is actively engaged with large, US based companies who are showing strong interest in the capability and performance of the system. The value proposition and competitive advantage for FRG based products in new and existing markets continues to strengthen.