Proceeds will be used for working capital; Northland is the bookrunner
By Devika Patel
Knoxville, Tenn., May 31 - MagneGas Corp. said it priced a $2.14 million public offering of units with a $320,260 greenshoe. The offering was announced Thursday.
The company will sell 2,372,295 units of one common share and a quarter-share warrant at $0.90 per unit. Each whole warrant will be exercisable at $1.35 for five years. The strike price is an 18.42% premium to the May 30 closing share price of $1.14.
Northland Securities, Inc. is the bookrunning manager.
Settlement is expected June 5.
Proceeds will be used for working capital and general corporate purposes.
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 quarter-share warrant
|
| Amount: | $2,135,066
|
| Greenshoe: | $320,260
|
| Units: | 2,372,295
|
| Price: | $0.90
|
| Warrants: | One quarter-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.35
|
| Bookrunner: | Northland Securities, Inc.
|
| Announcement date: | May 30
|
| Pricing date: | May 31
|
| Settlement date: | June 5
|
| Stock symbol: | Nasdaq: MNGA
|
| Stock price: | $1.14 at close May 30
|
| Market capitalization: | $18.1 million
|
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