No Way this price is going to hold. Here's why...
MagneGas Announces Pricing of $5.0 Million Registered Direct Offering
9:15 am ET October 11, 2018 (Globe Newswire) Print
MagneGas Applied Technology Solutions, Inc. ("MagneGas" or the "Company") (NASDAQ: MNGA), a leading clean technology company in the renewable resources and environmental solutions industries, today announced it has entered into a securities purchase agreement with certain accredited institutional investors to purchase approximately $5.0 million of its common stock in a registered direct offering and warrants to purchase its shares of common stock in a concurrent private placement. The combined purchase price for one share of common stock and each warrant will be $0.23.
Under the terms of the purchase agreement, MagneGas has agreed to sell 21,800,000 shares of its common stock. In a concurrent private placement, MagneGas has agreed to issue warrants to purchase up to an aggregate of 21,800,000 shares of common stock. The warrants sold in the private placement will become exercisable on the earlier of (i) six months following the date of issuance; or (ii) shareholder approval, will expire on 42 months after the closing date of the offering, and have an exercise price of $0.3654.
The gross proceeds to MagneGas from the registered direct offering are expected to be approximately $5.0 million before deducting placement agent fees and other estimated offering expenses. The offering is expected to close on or about October 15, 2018, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as the exclusive placement agent for this offering.
