The Purifloh Limited (ASX: PO3) share price is up from 78 cents this time last year to $4.75 today, although many ASX share market investors won’t have heard of this company that is in the air and water purification technology space.
The company changed its name from Water Resources Group Limited which it held since listing in 2010, to Purifloh Limited in April 2018, with the ticker PO3 being selected as O3 is the ozone radical of oxygen.
However, what really sent the Purifloh share price into orbit was news on November 7 2018 that the company had managed to secure a $9.6 million investment via the placement of 4 million shares at $2.4o each. Prior to this announcement the stock changed hands for just 50 cents.
According to Purifloh the investor is US based Upjohn Laboratories LLC that is the family run investment vehicle of businessman Mr Bill Parfet. Upjohn now owns 16.8% of Purifloh in total and has agreed to establish a subsidiary in the US to help commercially develop Purifloh’s Free Radical Generator Technology.
For the quarter ending September 30 2018 Purifloh posted no revenue and a cash outflow of $117,000, which makes its stellar share price performance curious, with the company now boasting a market value of $145 million according to Commsec.
Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.