Tonga Capital plans private placement for up to $5 million

By Sheri Kasprzak

New York, June 1 - Tonga Capital Corp. said it may head to the PIPE market with a $5 million offering as part of its acquisition of Momentum Biofuels, Inc.

The pricing terms of the deal have not yet been determined.

Under the terms of the acquisition, Tonga will pay 38 million shares to acquire all of Momentum's outstanding stock. The acquisition is slated to close this summer, and Tonga will change its name to Momentum.

Based in Denver, Tonga Capital does not have any significant operations and is hoping to gain its operations through the Momentum merger.

On Wednesday, the stock closed a $0.12, but on Thursday, the stock skyrocketed by $1.08, or 900%, to close at $1.20 (OTCBB: TGPC).

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