Proceeds will be used for working capital; Northland is the bookrunner
By Devika Patel
Knoxville, Tenn., June 5 - MagneGas Corp. reported in an 8-K that the underwriters for its public offering of units opted to exercise the deal's $320,260 greenshoe in full for total proceeds of $2.46 million. The offering was announced May 30 and priced for $2.14 million with the greenshoe on May 31.
The company sold 2,728,139 units of one common share and a quarter-share warrant at $0.90 per unit. Of the units, 355,844 were part of the greenshoe.
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. was the sole bookrunning manager and underwriter.
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: | $2,455,325 (including $320,260 greenshoe exercise)
|
| Units: | 2,728,139
|
| 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: | $17.5 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
