The financing will be used to commercialize the company’s new bio-electrode sensor technology.
In an interview with Entrevestor, IWT CEO Patrick Kiely said that both investors are contributing through convertible loans, “meaning the investment will become an equity stake when the company raises its next funding round”.
“This is absolute huge,” Kiely said of the investment round. “This really fills that gap. We needed 12 months to validate certain technical milestones and this cash allows us to get across that chasm of doom.”
IWT has two products on the market, both of which offer efficient means of treating water away from urban locations. Regen is a solar-powered system that can treat waste water for remote facilities ideally housing 75 to 250 people. ClearPod is an efficient septic system for individual households.
The company now has three installations of its Regen product, and Kiely told Entrevestor that the company is working on more sales, especially in the Middle East and North Africa.
He said that ClearPod is selling, not only in Canada, but also in such countries as China, Honduras and Kenya.
IWT will use part of the proceeds from this round to commercialize its bio-electrode sensor technology, which it calls Sentry and has been working on for 4.5 years. Sentry is a monitoring system that resides in the water treatment system and allows the operator to view the biology within the system in real-time on a computer or mobile device.
“Our plan is to form partnerships with leading waste-water groups in Europe and North America and we hope to install 15 of them in the next year, starting in May,” said Kiely.
In a statement, the two investors said the demand for systems that treat and clean water is growing around the world and IWT fills a market need by providing systems designed for outlying areas.