Purifloh admits faux pas, retracts statement over COVID-19 tech, gets reinstated, enjoys 30pc bump
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Purifloh (ASX:PO3) had to retract its media release made on 3 June – one that had sent its share price jumping by over 30 per cent from $1.50 to $1.99 over the following days.
The company decided to suspend its shares from trading on the 8 June, which have now been reinstated.
On 3 June, the air purification and water sanitation company released an announcement to the ASX, in which it cited the ABC 7:30 Report story that went to air on 31 May.
That ABC documentary was titled ‘The invisible threat of airborne COVID transmission inside hotel quarantine’, which claimed that the recent COVID-19 outbreak in Victoria was the result of airborne transmission of the virus from hotel quarantine in Adelaide.
In its release, Purifloh responded to the report by saying that in the short term, the government needs to “set up those hotels with proven, effective airborne prevention transmission technology.”
The company then pointed to its own technology, saying that tests have shown Purifloh devices can destroy up to 99.9 per cent of airborne biological and chemical contaminants, including viruses, bacteria, spores, mould, VOC and smoke.
“Our Australian technology delivers the assurance of best-in-class air and air conditioning surface disinfection, not simply purification, capable of destroying 99.9% cent of viral and bacterial contaminants. It produces no biohazards as a by-product of operation, only water and oxygen,” Purifloh director, Jon Evans said in that release.
“We have our Air Conditioning Sanitisation device currently being manufactured and due to market in the next three weeks and as such, call on all state governments to install this innovative, proprietary Free Radical Generator (FRG) technology into hotels being used for quarantine.”
Those two comments were enough to send the Purifloh share price flying by almost 7 per cent on the day of the release, where it continued to surge to $1.99 before the plug was pulled on 8 June.
Today, Purifloh has issued another release to the ASX, retracting and clarifying its position over the two statements.
With regards to destroying the virus statement, Purifloh has clarified that its device has not been tested against SARS-CoV-2, the virus that causes the disease known as COVID-19.
The company also said it has not yet endeavored to confirm that it kills SARS-CoV-2 through TGA prescribed methodology, as there are limited ISO17025 (Good Laboratory Practice) certified laboratories that have certification and equipment to challenge airborne pathogens.
However, the company stood by its announcement made in 2018 regarding its Free Radical Generator (FRG) technology, where it reported that “total kill rates of biological contaminants in the entire room is extremely high, achieving 99.999% bacteria removal and 99.9999% virus removal in 90 minutes.”
That statement, the company said, was factual and a result of tests conducted at an independent laboratory, Aerosol Research and Engineering Laboratories, in Kansas.
As for the air conditioning sanitation device, the company has decided to fully retracted the statement.
Purifloh said that statement could be misleading, and might lead investors to believe that the company has proven that its devices can kill SARS-CoV-2.
The company emphasised that it has advised in its recent quarterly that it had decided not to continue with its plans to test its devices for SARS-CoV-2.
In another separate announcement released today, Purifloh said that it has executed a non-binding agreement with Osmoflo Water Management, a subsidiary of Hitachi Zosen of Japan.
The agreement provides for collaboration between Purifloh and Osmoflo to undertake work seeking to reduce the presence of biologic and chemical contaminants in water.
Work scope includes testing of Purifloh’s technology within the Osmoflo ‘Edge’ R&D facility; and re-treatment of source water for reverse osmosis (RO) plants to minimise biofouling of RO membranes.
PuriflOH expects initial results from the project to be achieved within three months.
Purifloh focuses on commercialising global patent-pending technology for purifying air, water and surfaces in residential, commercial and industrial application.
The company was founded in 2010, and has spent more than 10 years perfecting its FRG plasma technology.
The FRG technology harnesses UV light, free radicals and electrons to naturally excite the air, and molecularly break down and eliminate harmful biological and chemical containments in air, water and on surfaces.
It can also be used as an oxidation system for water treatment by deploying “the power of free radicals” to purify the water – no chemicals, and all natural.
Five global patents are currently pending on this technology.
The company is pre-revenue and its share price has declined by almost 50 per cent over the past year.