Offering includes five-year warrants; Merriman Capital was the agent
By Devika Patel
Knoxville, Tenn., April 9 - Omnitek Engineering Corp. said it completed a $5.52 million private placement of stock. The deal was arranged on April 5 to raise about $5 million and had a greenshoe option, which was exercised for $516,800, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold 2,602,264 common shares at $2.12 apiece. The price per share is a 50.58% discount to the April 4 closing share price of $4.29.
The investors also received five-year warrants for 2,602,246 shares, which are each exercisable at $3.88. The strike price represents a 9.56% discount to the April 4 closing share price.
Merriman Capital, Inc. was the agent.
Proceeds will be used to accelerate the build-out of a national network of diesel-to-natural gas truck engine conversion facilities in the United States and for general corporate purposes to support the company's growth.
"The completion of this financing will greatly accelerate the build-out of our national network of diesel-to-natural-gas conversion facilities," president and chief executive officer Werner Funk said in a press release at pricing. "There is enormous pent-up demand for truck engine conversions in the U.S. market as well as other substantial opportunities - including power generators, irrigation pumps and other diesel-powered equipment."
Based in San Marcos, Calif., Omnitek develops and sells new natural gas engines as well as a proprietary technology to convert any diesel engine to a natural gas engine.
| Issuer: | Omnitek Engineering Corp.
|
| Issue: | Common shares
|
| Amount: | $5,516,800 (including $516,800 greenshoe)
|
| Shares: | 2,602,264
|
| Price: | $2.12
|
| Warrants: | For 2,602,246 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.88
|
| Agent: | Merriman Capital, Inc.
|
| Pricing date: | April 5
|
| Settlement date: | April 9
|
| Stock symbol: | OTCBB: OMTK
|
| Stock price: | $4.29 at close April 4
|
| Market capitalization: | $74.16 million
|
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