By Laura Lutz
Des Moines, Nov. 3 - Shumate Industries, Inc. completed a private placement of stock for $1,048,550.
The company sold 953,228 shares at $1.10 each to accredited investors.
The investors also received 238,308 class B warrants, each exercisable at $1.75 for five years.
The expiry of the warrants may be accelerated to 20 days if the company's common stock trades at or above $3.50 with a trading volume of at least 100,000 shares each day for 15 consecutive trading days.
Proceeds will be used the launch the company's new Hemiwedge Valve technology, for working capital, to settle its outstanding 2.5 million debenture with Stillwater National Bank for $525,000 and for other general corporate purposes.
Shumate is a Conroe, Texas-based machining company focused on the energy field services market.
| Issuer: | Shumate
|
| Issue: | Stock
|
| Amount: | $1,048,550
|
| Shares: | 953,228
|
| Price: | $1.10
|
| Warrants: | 238,308
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.75
|
| Settlement date: | Nov. 3
|
| Stock symbol: | OTCBB: SHMT
|
| Stock price: | $1.19 at close Nov. 3
|
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