$4-Million Toxxic Control Deal Deadline Extended

American Toxxic Control Inc. said that its major financial sources have agreed to extend until April 17 the financing deadline they imposed as part of a $4-million investment.

Merrill Lynch Business Capital Inc. and San Francisco-based BBU Mezzanine Fund provided the $4 million in August to enable Huntington Beach-based American Toxxic to acquire a portion of U.S. Filter Corp. from Texcel International. As part of the deal, American Toxxic agreed to raise $2 million in new equity capital by Jan. 25.

But the company raised only about $1.4 million through a private placement of stock and warrants by the time the deadline arrived, said Ski Milburn, acting chief executive.

“We are still short about $600,000,” he said, “but we are negotiating a debt and equity deal to raise $4 million, and it will contain more than enough equity” to meet the Merrill Lynch-BBU conditions.

Milburn, who has been an outside director of the firm since it went public in a merger with Novan Energy Inc. of Boulder, Colo., in 1986, said he was named acting chief executive earlier this month after Lou Purmort, American Toxxic’s founder, resigned.

Purmort, who helped found U.S. Filter Corp. in 1953 and made about $20 million when the company was acquired by Ashland Oil in 1981, remains an American Toxxic director.

He resigned his operating posts, however, after Forbes Magazine published a lengthy article questioning the company’s goals and Purmort’s credibility. Nearly 2 years ago, Forbes published an article that was highly favorable both to the company and to Purmort.

Milburn said Purmort resigned as chairman and chief executive because of the most recent Forbes article. He said that neither Purmort nor American Toxxic, however, has responded to the article and that the company does not intend to get into a debate with the magazine.

Purmort could not be reached for comment.