The EB-5 immigrant funds come from an investment programme that enables immigrants to get permanent residency in exchange for a minimum $500,000 investment by them into a US business.
The first round of funding, which is targeting $5 million, is expected to close by the end of this summer, according to Chris Fox, chief operating officer of Clear Currents. The proceeds of the full $45 million will go into factory expansion, new developments and marketing materials of Clear Currents.
“We have raised the majority amount in the first round of funding and the main interest comes from investors in China,” Fox said in an interview. “Pretty much anyone who can afford to invest $500,000 is interested. People want to have an investment here while their kids are attending schools in the US.”
Fox said it’s still too early to talk about the timeline and target of the second and third round of funding.
Clear Currents and PDC signed the agreement for $45 million capital raise in November 2014 and the fundraising started last week.
A leader in providing innovative green solutions, Clear Currents has completed multi-year testing of several innovative products in cooperation with the Ministry of Agriculture in China and has gained traction within several provinces where the testing was performed, according to the release.
“We are very pleased with this opportunity to assist Clear Currents with their public company ambitions and expect a straightforward process,” said Francisco in a statement. Clear Currents is preparing for an initial public offering although no further details were available when Agri Investor went to press.
The funds will be used to “assist with expanding Clear Currents’ operations and entering foreign markets including the European Union, the Middle East, Africa and Brazil”, reads the press release.
A Dana Point, California, green technology company, Clear Currents makes environmentally-safe and non-toxic agricultural products and industrial cleaners. Its groundbreaking products SeaStar and EcoStar deliver innovative natural solutions that create healthier crops, improve food quality and repair soil damaged by toxic chemical fertilisers and pesticides, according to a statement from PDC.
Clear Currents is currently the only biotech company that PDC is investing in. The two companies started the joint venture in August 2014.
Other services PDC offers include project development, immigration services and transition services. The company is currently working on two projects for EB-5 investors: 25 SummerPlace Assisted Living & Memory Care Centers in multiple states and a European-style café that will open in prime locations in California.