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MagneGas Announces Pricing Of Public Offering Of Common Stock And Warrants

TAMPA, Fla., May 31, 2013 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), the manufacturer of a technology that converts liquid waste into a hydrogen-based metal working fuel and natural gas alternative, announced today that it has priced an underwritten public offering of 2,372,295 shares of its common stock and warrants to purchase 593,074 shares of its common stock.  Each share of common stock will be sold with a warrant to purchase 0.25 of a share of common stock.  Each share of common stock and related warrant will be sold at a combined price to the public of $0.90, for gross proceeds of $2,135,065.  The net proceeds from the sale of the shares and related warrants, after deducting the underwriter's discounts and other estimated offering expenses payable by the Company, will be approximately $1,839,360.  The warrants are exercisable for a period of five years beginning on the closing date of the offering at an exercise price of $1.35 per share.  The Company has also granted the underwriter a 45-day option to purchase up to an additional 355,844 shares and related warrants to purchase up to an additional 88,961 shares of common stock to cover over-allotments, if any.

The Company currently intends to use the net proceeds from this offering for working capital and general corporate purposes. The offering is expected to close on or about June 5, 2013.

Northland Capital Markets is acting as the sole book-running manager for the offering.

The Company is offering and selling these securities pursuant to the Company's existing shelf registration statement (File No. 333-188661), which was declared effective by the Securities and Exchange Commission ("SEC") on May 28, 2013. A preliminary prospectus supplement describing the terms of the offering has been filed with the SEC and a final prospectus supplement describing the terms of the offering will be filed with the SEC, which will form a part of the effective registration statement. When available, copies of the preliminary prospectus supplement, the final prospectus supplement and the accompanying base prospectus related to this offering may be obtained from the SEC's website at http://www.sec.gov or by contacting Ted Warner at Northland Capital Markets, 45 South Seventh Street, Suite 2000, Minneapolis, MN 55402, by calling 612-851-4906, or by emailing  twarner@northlandcapitalmarkets.com.

This press release does not constitute an offer to sell or the solicitation of offers to buy any securities of the Company, and shall not constitute an offer, solicitation or sale of any security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

To be added to the MagneGas investor email list, please email pcarlson@kcsa.com with MNGA in the subject line.

The MagneGas IR App is now available for free in Apple's App Store for the iPhone or iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.

Northland Capital Markets is the trade name for certain capital markets and investment banking services of Northland Securities, Inc., member FINRA/SIPC.

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