Puerto Rican Bank OKs Financing for HOH Plant
HOH Water Technology said it has received approval in principle for $2 million in financing from Economic Development Bank of Puerto Rico. The financing is intended to help the fledgling Newbury Park company set up a manufacturing plant in Puerto Rico to manufacture its water purification systems for residential and commercial use.
The financing is conditional until the consulting firm Arthur D. Little concludes its report on the market potential of HOH’s products. That report is expected to be completed next month.
If the financing is completed, Economic Development Bank would lend HOH $1.5 million and invest $500,000 in the company. HOH has recently been suffering from a cash crunch. Company President David Kravitz said the company hopes to be in production within six months after receiving the financing.
The Puerto Rican government often lends money to companies that locate factories there in an effort to create jobs.