Downtown-based water treatment company OriginClear Inc. has received the green light from regulators for its sale of roughly $20 million in preferred stock.
The Securities and Exchange Commission approved the company’s Regulation A+ offering at $25 dollars per share, with a 10% annual dividend. Regulation A+, sometimes called a “mini-initial public offering,” allows companies to raise funds from public markets with fewer regulatory disclosure requirements and lower associated fees.
OriginClear Chief Executive Riggs Eckelberry said the new funds will be used to acquire additional water technology companies and pay off long-term corporate debt. It will also be used to double-down on investments in water projects, such as OriginClear’s mobile water treatment system leasing business.
OriginClear leases water treatment systems to such groups to reach their unmet water needs. The company says it has built these for a range of businesses, including an insurance company and a car dealership.
Rather than being discouraged by the down markets and impending recession, Eckelberry said he expects investors will be more eager than ever to buy into his industry.
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