(MENAFN - ProactiveInvestors - Australia) Phoslock Water Solutions (ASX: PHK) will add A1.1 million to its cash reserves after receiving solid support from its shareholders in its recent share purchase plan.
A large number of shareholders took up shares under the plan, including the majority of the company's Top 50 shareholders.
The funds raised will go towards financing Phoslock's international expansion program.
The company has worldwide exclusivity for the sale and marketing of Phoslock, a technology developed by the Australian government scientific body CSIRO.
The Phoslock product removes phosphorus and harmful contaminants and has been applied in over 200 water bodies and used in over 20 countries since it was commercialised in 2005.
It is primarily used as an in water solution for lakes, drinking water reservoirs and other high value recreational water bodies.
Phoslock was recently awarded a 400,000 contract in the United Kingdom and its U.S. licence has completed its largest project to date, in Florida.
The company will now issue about 24 million shares at 0.046 each following yesterday's close of the share purchase plan.
Australian and New Zealand shareholders were entitled to subscribe to up to 15,000 worth of new shares at a 20% discount to the volume weighted average price for the five trading days immediately prior to the announcement of the share purchase plan in mid-January.
Several of Phoslock's largest shareholders are domiciled overseas and were excluded from the share purchase plan.
The company has decided to place a comparable number of shares with shareholders who fall into this category under its 15% placement powers and who meet the sophisticated investor criteria.
The number of shares expected to be issued is not currently known, but is expected to be less than 5 million.