Cavitation Technologies Raises $1.5 Million for Permian Basin Project

Cavitation Technologies Inc. has raised $1.5 million through the sale of 23 million units of common shares of its stock as well as warrants for future sales of more shares.The Chatsworth manufacturer of fluid processing systems for making edible oils, renewable fuels, alcoholic beverages and clean water sold the units to a group of existing shareholders in the company.The proceeds will be used to commercialize the products made by Enviro Watertek, a joint venture that Cavitation is part of in New Mexico. Enviro Watertek treats water from oil and natural gas wells in the Permian Basin and allows for its recycling back into the fracking of additional wells.Neil Voloshin, chief financial officer of Cavitation, said the funding would accelerate the commercialization of the Enviro Watertek’s product as well as increase Cavitation’s pro-rata participation in that commercialization.“In conjunction with rising oil prices, drilling activity in the Permian Basin is picking up, which we believe will provide considerable opportunity for Enviro Watertek’s innovative systems, and in turn Cavitation’s bottom line,” Voloshin said in a statement.Shares in Cavitation Technologies (CVAT) closed up a fraction of a cent, or about 4.5 percent, to 7 cents on the over-the-counter market.