MagneGas Corporation issued the following announcement on Dec. 3.
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.”
Original source can be found here.