NEW YORK (TheStreet) -- Shares of Clean Diesel Technologies (CDTI) surged 12.68% to $3.57 in morning trading Tuesday after the emission control technology company announced it had raised approximately $4.4 million in gross proceeds through an offering of common stock and warrants to a single institutional investor.
Net proceeds from the offering, which the company expects to close on November 7, will total approximately $3.8 million.
The investor has purchased 1,553,571 shares of common stock for $2.80 a share, with 168,571 of shares in the form of penny warrants acquired for $2.79 per warrant. The investor will also receive regular warrants to acquire 388,393 additional shares for $3.25 a share.
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The penny warrants will expire in six months, while the regular warrants will expire five years from the date of issuance.
More than 4 million shares had changed hands as of 9:52 a.m., compared to the average volume of 922,822.
Separately, TheStreet Ratings team rates CLEAN DIESEL TECHNOLOGIES as a "sell" with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLEAN DIESEL TECHNOLOGIES (CDTI) a SELL. This is based on several weak investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, weak operating cash flow and poor profit margins."