Rotherham-based Xeros, which is a developer and provider of water saving and filtration technologies, said the placing will be launched immediately.
Net proceeds of the fundraise will be used to provide the funding necessary to accelerate commercialisation of the company's XFiltra technology for the domestic washing machine market over the next two years with revenue anticipated in 2023.
The statement added: "The net proceeds will also provide funding to continue the execution of the company's current portfolio of contracts and development agreements and to enter into new agreements in additional geographies as well as providing contingency funding for any further potential COVID-19 related delays."
Mark Nichols, CEO of Xeros, said: "This placing enables the development and commercialisation by licensees of our filtration technology platform, XFiltraTM, in the domestic washing machine market where there is now regulatory and consumer pressure to stop some 280,000,000 kilograms of microfibres from washing clothes reaching the environment.
"These fibres are now to be found across the trophic range. It will also finance growth in the number of licensing contracts and high margin revenues in our XOrbTM/XDrumTM technology platform which radically reduce environmental impacts and costs across large parts of the clothing and fabric lifecycle.
"The support of existing and new shareholders in delivering these environmental improvements in global scale industries is highly valued by both the Company and the increasing numbers of stakeholders who will now benefit."
Last summer, Xeros Technology Group's filtration technology was independently verified by scientists at the University of Plymouth as being a leading device for reducing microplastic pollution released from washing machines.
Xeros’ in-machine filtration technology, XFiltra, was tested at the university’s Marine Litter Research Institute, alongside products from other companies to measure their effectiveness at capturing microfibres, released from clothes during wash cycles, and preventing their release in wastewater.
The data found that XFiltra performed "significantly better" than all other products evaluated.
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