MagneGas to purchase up to $620,000 of its Series E convertible preferred stock
MagneGas announced that it has entered into a securities purchase agreement with certain existing institutional accredited investors to purchase up to approximately $620,000 of its Series E convertible preferred stock and warrants to purchase Series E convertible preferred stock. At the initial closing under the securities purchase agreement, the company will issue to the investors a total of 36,765 shares of Series E convertible preferred stock at a purchase price of $1.36 per share. The remainder of the funding will be made available to the company through the exercise of the warrants being issued in the offering based on market conditions. The warrants will be exercisable for up to 419,717 shares of the company's Series E convertible preferred stock at an exercise price of $1.36 per share. Terms of the financing and related agreements will be disclosed in the company's Form 8-K to be filed with the Securities and Exchange Commission.