Phoslock on brink of becoming very large, according to Chairman Lawrence Freedman.

Those versed in good punctuation may have spotted the incorrect use of capital letters in part of a recent ASX announcement by Phoslock's [ASX:PET].

The announcement dealt with company's successful and somewhat surprising $15m capital raising.

But the use of the capital letters in a quote by Chairman Laurence Freedman, Very Large Projects, were no accident according to the business and investment veteran.

Phoslock Environmental Technologies Limited (ASX: PET) is an international environmental company specialising in engineering solutions and water treatment products to remediate polluted lakes, rivers, canals and drinking water reservoirs.

[More on the company's products after the video interview.] It has one plant in China and intends to open another.

Freedman, who is also a skilled media man, has steered Phoslock to a position of profitability, debt free and with about ten million in cash.

Despite the company's healthy position, Freedman told me that the Very Large Projects are so big that the potential customers (all Phoslock customers are governments) were worried Phoslock wouldn't be able to fund them and survive to do the work.

"The governments in one area of China, where the lakes are so big, have said that if we give you this order and we know you have to supply all this product, how are you going to cope in terms of working capital?" he told me.

It seems China may be very different in many ways to the rest of the world, but when it comes to timely payment by government, it is just as slow as everybody else.

I spoke with Lawrence Freedman about the capital raising to get more detail on why it went ahead.

DISCLAIMER AND IMPORTANT INFORMATION I do own shares in Phoslock at the time of writing this post. However, I do not accept any payment from this or any other companies I cover. Nor is my interview or blog in any way a recommendation and should not be seen as a form of financial advice. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.

PHOSLOCK ENVIRONMENTAL TECHNOLOGIES LIMITED (PET) Phoslock Environmental Technologies Limited is listed on the Australian Securities Exchange (ASX Code: PET).

Phoslock Environmental Technologies Limited (ASX: PET) is an international environmental company specialising in engineering solutions and water treatment products to remediate polluted lakes, rivers, canals and drinking water reservoirs. PET has its headquarters in Sydney, Australia with offices in Brisbane, Beijing & Changxing, China; and Manchester, UK. PET is represented by licensees, distributors and agents in ten other countries including SePRO Corporation in the United States and HidroScience in Brazil.

PET has a number of marketing and co-operation agreements in China with various environmental companies and government agencies.

In 2017 Phoslock (Beijing) was formed to help remediate the massive Chinese algae and water pollution problem. This 100% owned subsidiary undertakes design, engineering, and implementation of rivers, canals, reservoirs and lakes, along with construction of wetland areas. The significant broadening of the historical PET business allows for work on a greatly increased array of projects both in China and elsewhere.

PET owns the patent for Phoslock®, a unique water treatment product that permanently binds excess phosphorus in the water column and sediments. This in turn inhibits the growth of Harmful Algal Blooms (HAB) that lead to detrimental effects to both aquatic and human life.

Phoslock® is certified to be used in drinking water in North America, Europe, UK, Brazil, Australia and China.

Along with Phoslock® PET also supplies: 1) Zeolites - a porous, natural material that can be applied to heavily polluted water to absorb nutrients such as nitrogen. Nitrogen is an important food source for the growth of harmful algae. 2) Bacteria. - Specialised types of bacteria can break down contaminants and organic matter that pollute water and cause human and water-borne diseases. PET has a large multi-purpose factory in Changxing, Zhejiang province, China, 150km inland from Shanghai, which manufactures its patented technology, Phoslock®, along with nutrient binding materials zeolites and bacteria. It also has an engineering and physical water management division. The Changxing Factory recently received ISO accreditation from TUV Rheinland, a German engineering accreditation agency for: ISO 9001 – Quality Control and Documentation Certification. ISO 14000 – Environmental Management Standards Certification; and OSHA 18000 - Health and Safety Management Systems. PET has secured the exclusive global licence to manufacture, sell and distribute a unique new product which, after removing phosphorus from polluted water, can be reused. PET has established a development team to advance the product to full commercialisation. It is anticipated that commercial quantities of the new product will be available by mid-2020.