Company sells units of shares, five-year warrants at $0.20 per unit
By Devika Patel
Knoxville, Tenn., March 29 - MagneGas Corp. said it plans a $3.88 million private placement of units. The company expects to conduct two closings on March 29 and April 2.
MagneGas will sell 19,412,500 units of one common share and one half-share warrant at $0.16 per unit.
Each whole warrant is exercisable at $0.40 for five years. The strike price is a 48.15% premium to $0.27, the March 28 closing share price.
Northland Capital Markets is the agent.
Proceeds will be used primarily to launch in full to the national metal working market by installing refinery filling stations and to expand the company's fuel cylinder inventory to fill more orders.
Tampa, Fla.-based MagneGas produces MagneGas, a natural-gas alternative and metal-working fuel made from liquid waste such as sewage.
| Issuer: | MagneGas Corp.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | $3,882,500
|
| Units: | 19,412,500
|
| Price: | $0.20
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.40
|
| Agent: | Northland Capital Markets
|
| Settlement date: | March 29, April 2
|
| Stock symbol: | OTCBB: MNGA
|
| Stock price: | $0.27 at close March 28
|
| Market capitalization: | $41.69 million
|
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