Series C Convertible Preferred Financing Effectively Complete
03 Dezembro 2018 - 11:00AM
Investor Materially Exhausts Series C
Convertible Preferred Instrument
MagneGas Applied Technology Solutions, Inc. ("MagneGas" or
the "Company") (NASDAQ: MNGA), a leading clean technology
company announces that the holder of the Series C Convertible
Preferred financing instrument has converted approximately 98% of
its holdings to date. The Company had previously announced
the closing of a $25 million convertible preferred in June of
2017. This instrument was the primary source of equity
financing for the Company for the past 18 months. The Company
understands the investor has elected to retain less than a 2%
position in the instrument to preserve certain contractual rights,
including the ability to participate in future capital transactions
with the Company.
“The Series C convertible preferred was a
critical source of capital for MagneGas as we executed a series of
transformational acquisitions,” commented Scott Mahoney, Chief
Executive Officer of MagneGas. “When we sought a scalable
equity partner in early 2017, we were primarily a research and
development organization with a limited vision for a path to rapid
revenue growth.”
Mahoney continued, “We identified a clear path
forward with our acquisition strategy, which has enabled us to
drive roughly 500% revenue growth in less than one year. We
now have access to tens of thousands of prime metal cutting fuel
consumers in the two largest markets in the US. The capital
deployed enabled all of this to happen.”
“Going forward, we anticipate the ability to
dramatically reduce the cost of capital for future
growth. With our revenue scale and path to a positive
EBITDA business model, we have significantly improved our access to
capital. When needed, in the future we hope to raise capital only
at fixed prices, with steadily improving terms. We believe
this will give us the best opportunity to deliver shareholder value
while executing our business plan in 2019 and beyond.”
About MagneGas Applied Technology
Solutions, Inc.
MagneGas Applied Technology Solutions, Inc.
(MNGA) owns a patented process that converts various renewables and
liquid wastes into MagneGas® fuels. These fuels can be used as an
alternative to natural gas or for metal cutting. The Company's
testing has shown that its metal cutting fuel “MagneGas2®” is
faster, cleaner and more productive than other alternatives on the
market. It is also cost effective and safe to use with little
changeover costs. The Company currently sells MagneGas2® into
the metal working market as a replacement to acetylene.
The Company also sells equipment for the
sterilization of bio-contaminated liquid waste for various
industrial and agricultural markets. In addition, the Company is
developing a variety of ancillary uses for MagneGas® fuels
utilizing its high flame temperature for co-combustion of
hydrocarbon fuels and other advanced applications. For more
information on MagneGas, please visit the Company's website at
http://www.MagneGas.com.
The Company distributes MagneGas2® through
Independent Distributors in the U.S and through its wholly owned
distributors, ESSI, Green Arc Supply, Paris Oxygen, Latex Welding
Supplies, United Welding Supplies, Trico Welding Supply and
Complete Welding of San Diego. The Company operates 13 locations
across California, Texas, Louisiana, and Florida.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking
statements as defined within Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. These statements relate to future events,
including our ability to raise capital, or to our future financial
performance, and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of
activity, performance, or achievements to be materially different
from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking
statements. You should not place undue reliance on forward-looking
statements since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond
our control and which could, and likely will, materially affect
actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects our current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, results
of operations, growth strategy and liquidity. We assume no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future.
For a discussion of these risks and
uncertainties, please see our filings with the Securities and
Exchange Commission. Our public filings with the SEC are available
from commercial document retrieval services and at the website
maintained by the SEC at http://www.sec.gov.
Investor Contacts:Tirth PatelEdison AdvisorsT:
646-653-7035tpatel@edisongroup.com
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