HOH Water Technology Secures Funds for Plant

HOH Water Technology said it secured $3.5 million in additional financing that should enable the fledgling Newbury Park company to complete its first manufacturing plant.

HOH is developing a water-purification system for residential and industrial use. But its effort to begin manufacturing the product at a proposed plant in Puerto Rico had been delayed while the company tried to raise additional funds.

HOH said it completed a $1.5-million private placement of common stock and warrants. It also said the Economic Development Bank of Puerto Rico has invested $1 million in the company and guaranteed the majority of a $1-million loan to HOH that will be made by Banco Central Corp. in Puerto Rico. HOH said it expects to start manufacturing its systems within six months, barring construction delays.

After the announcement, HOH’s units--composed of common stock and warrants--soared $2.125 per unit, or 33%, to close at $8.625 per unit in over-the-counter trading.