By Tampa Bay Business Journal

MagneGas Corp. has a definitive agreement to sell stock and stock warrants in a private placement valued at $2.7 million.

Proceeds will be used primarily to install refinery filling stations in Detroit that are wholly owned and operated by MagneGas, and to significantly expand the companyâ¿¿s fuel cylinder inventory to fill more and larger orders, a company statement said.

Investors agreed to buy 16.9 million shares of common stock and warrants to purchase 16.9 million shares of common stock at a purchase price of 16 cents a unit. The warrants have an exercise price of 30 cents a share and expire in five years.

MagneGas (OTCBB: MNGA), headquartered in Tarpon Springs, produces a technology that converts liquid waste into a hydrogen-based metal working fuel and natural gas alternative.

Copyright 2011 American City Business Journals

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