MagneGas Reaches Agreements For Financing Of $4 Mln In Gross Proceeds

(RTTNews) - MagneGas Corp. (MNGA) announced Wednesday that it has entered into definitive agreements with an institutional investor for a financing of $4 million in gross proceeds.

As the terms of the agreements, MagneGas will issue registered shares of the Company's common stock for $1.86 million in gross proceeds and unregistered shares of Series B convertible preferred stock for $2.14 million in gross proceeds, which are convertible into common stock of the Company at $0.80 per share.

The transaction also provides for the issuance by the Company of unregistered warrants to purchase up to 2.68 million shares of common stock of the Company with an initial exercise price of $1.11.

The offering is expected to close on or about Monday, January 27, 2014, subject to the satisfaction of customary closing conditions.

Northland Capital Markets is serving as the exclusive placement agent on the transaction.

The company plans to use the proceeds from the transaction for general corporate purposes, including working capital and potential acquisitions.