- Phoslock Environmental Technologies (PET) has successfully raised $12 million through a share placement
- Approximately 24 million shares were issued to institutional investors at a price of 50 cents each
- The CEO, Directors, and a number of senior executives will also contribute an extra $3 million, however, this is subject to shareholder approval
- PET will also initiate a share purchase plan that will allow all eligible shareholders to apply for up to $30,000 worth of shares
- The money will allow the company to begin its large-scale projects and facilitate its rapidly expanding China business
- PET shares are down 6.84 per cent and are trading for 54.5 cents each
Phoslock Environmental Technologies (PET) has successfully raised $12 million through a share placement.
Approximately 24 million fully-paid ordinary shares were issued to institutional investors at a price of 50 cents each.
As this placement was available in investors both in Australia and overseas, PET received very strong demand and had to cutback to keep in line with the target amount.
CEO Lachlan McKinnon, the company directors, and a number of senior executives will also contribute an extra $3 million, however, this is subject to shareholder approval.
Shares are expected to be issued to shareholders on April 17.
PET will also be initiating a share purchase plan that will allow all eligible Australian and New Zealand shareholders to apply for up to $30,000 worth of shares.
More details regarding this will be announced next week.
Money raised from the placement will help facilitate PET's rapidly expanding China business and the country's want to get projects started.
The money will also help the company begin its large-scale projects.
"In ordinary circumstances, this would be an outstanding result, in the present global market it is even more so," Chairman Laurence Freedman said.
"We are now able to tackle very large projects without concerns for working capital requirements," he added.
PET specialises in engineering solutions and water treatments to help polluted lakes, canals and rivers return to what they once were.
The company has patents for its water treatment product, Phoslock, in Australia, North America, the U.K. and Europe, China, and Brazil.
Phoslock permanently binds excess phosphorous in water bodies and forms a new mineral called rhabdophane, which then becomes part of the natural sediments in the water.
If a water body has a high concentrate of phosphorous, harmful algal blooms can form which leads to deteriorating water quality.
If humans ingest water with a lot of phosphorous it can be extremely toxic, causing vomiting, nausea, dizziness and diarrhoea.
High levels can also affect the body's ability to effectively use other minerals such as magnesium, calcium, iron and zinc.
PET shares are down 6.84 per cent and are trading for 54.5 cents each at 1:50 pm AEST.