Mechanical Technology Incorporated Inc. (NASDAQ: MKTY) stock soars by 16.39% at last check in the current market trading. MTI is designing cryptocurrency mining facilities that are fuelled by green energy and connect with the blockchain network by EcoChain. MTI Instruments, Inc. and EcoChain, Inc. are subsidiaries of MTI.
What is happening?
MKTY announced the price of its firm’s commitment underwritten public offering of 2,419,355 shares of common stock, as well as options to buy up to 604,839 shares of common stock, today. Each share of common stock sold will be accompanied by a warrant to purchase.25 of one share of common stock given for every share of common stock sold. Every class of common stock and an associated warrant is priced at $6.20 in the public offering. The warrant would have an introductory exercise price of $8.24 and will be automatically valid and exercisable, and have a five-year term from commencement.
Before subtracting underwriting discounts and other selling costs owed to MTI, the net revenue from this offering are estimated to be around $15 million. MTI has also given the underwriter a 45-day option to buy up to 362,903 additional shares of its common stock, as well as warrants to acquire up to 90,726 additional shares of common stock at the public offering price. MTI is selling all of the shares to the underwriters of the offering, who have agreed to buy all of the securities. Depending on customary closing terms, the offering is scheduled to close on or around April 29, 2021.
In conjunction with other funds available, MTI plans to use its gross profits for purchase, stability, and advancement of data centers, including crypto-monetary mining processors, other computer processors, data storage, electrical infrastructure, software, and real estate (i.e. land and building) and for purchases of businesses, products or assets related to MTI. Univest Securities, LLC is the only book operator to do this.