On Wednesday, Shares of MagneGas Corporation (NASDAQ:MNGA), subtract -16.77% and closed at $0.540 in the last trading session. The last trading range of the stock ranges between $0.53 and $0.67. MagneGas Corporation (“MagneGas” or the “Company”) (MNGA), a technology company that counts among its inventions a patented process that converts renewable and liquid waste into MagneGas2® fuel, declared recently that on November 16, 2016, it reached a contract with a single institutional shareholder for a registered direct placement of about $3 million. The Securities Purchase Agreement provides for the sale of $2.5 million of pre-funded warrants which warrants are exercisable into 5,102,041 shares and $500,000 in payment for 1,020,408 shares.
The shareholder and the Company also agreed to amend the following warrants issued as part of a June 2016 financing: an E-4 common stock purchase warrant is now exercisable at $0.66 ($0.01 above the closing market price) for the shareholder to purchase up to an additional $4.6 million of common stock and is now exercisable 6 months from the closing of this transaction and now has a term of 7 years; an E-5 common stock purchase warrant to purchase 3,508,772 shares of common stock is now exercisable at $0.90 (about 38% premium to the closing market price); and an E-6 common stock purchase warrant to purchase 1,754,386 shares of common stock is also now exercisable at $0.90. The Series E-5 and E-6 common stock purchase warrants vest ratably only upon the exercise of the E-4 common stock purchase warrant.
The placement is expected to close on or before November 18, 2016, subject to satisfaction of customary closing conditions.
The pre-paid warrants and common stock are being offered and the E-4 warrants are being amended following a shelf registration statement (File No. 333-207928), which was declared effective by the United States Securities and Exchange Commission (“SEC”) on June 15, 2016.
Summit Materials Inc (NYSE:SUM), dropped -2.05% and closed at $23.94 in the last trading session. The last trading range of the stock ranges between $23.20 and $24.19. The company’s Market capitalization is $2.46 Billion with the total Outstanding Shares of 75.57 million. Summit Materials, Inc. (NYSE:SUM, “Summit”) declared recently the pricing of a secondary offering of 16,614,949 shares of Class A common stock by certain selling stockholders, counting associates of The Blackstone Group L.P., at a public offering price of $22.10 per share. The offering is expected to close on November 15, 2016, subject to customary closing conditions.
Summit did not offer any shares of Class A common stock in the offering and will not receive any proceeds from the sale of shares in this offering.
Barclays Capital Inc. is serving as sole book-running manager for the offering.