Company gets 20% stake in China-based joint venture under agreement
By Angela McDaniels
Tacoma, Wash., Oct. 5 - MagneGas Corp. sold $2 million of common stock to DDI Industry International in a private placement, according to a company news release.
Under the agreement reached June 22, the investor purchased 14,814,815 shares in two tranches of $1 million each. The first tranche closed on June 30, and the second closed Sept. 30.
The price per share was approximately $0.13, which is a 30% premium to the closing share price of $0.10 on June 21.
DDI acquired the exclusive MagneGas Technology and manufacturing rights for the Greater China market, and MagneGas received 20% ownership in a new China-based joint venture.
MagneGas said it will use the proceeds of the stock sale to manufacture and sell gas into the metal-working market and to explore the research and development of hydrogen separation.
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: | Common stock
|
| Amount: | $2 million
|
| Shares: | 14,814,815
|
| Price: | $0.13 (approximate)
|
| Warrants: | No
|
| Investor: | DDI Industry International
|
| Pricing date: | June 22
|
| Settlement date: | Sept. 30
|
| Stock symbol: | OTCBB: MNGA
|
| Stock price: | $0.17 at close Oct. 5
|
| Market capitalization: | $19.6 million
|
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