MagneGas settles $400,000 of $3.15 million private placement of units

Company sells units of shares, five-year warrants at $0.16 per unit

By Devika Patel

Knoxville, Tenn., Nov. 8 - MagneGas Corp. completed a $400,000 second tranche of a private placement of units on Nov. 8, according to an 8-K filed Friday with the Securities and Exchange Commission. The company raised $2.75 million on Oct. 28.

The company sold 17,162,500 units of one common share and one warrant at $0.16 per unit in the first tranche and 2.5 million units in the second.

Each warrant is exercisable at $0.30 for five years. The strike price is a 30.44% premium to $0.23, the Oct. 27 closing share price.

Tampa, Fla.-based MagneGas produces MagneGas, a natural-gas alternative and metal-working fuel made from liquid waste such as sewage.

Issuer:	MagneGas Corp.
Issue:	Units of one common share and one warrant
Amount:	$3,146,000
Units:	19,662,500
Price:	$0.16
Warrants:	One warrant per unit
Warrant expiration:	Five years
Warrant strike price:	$0.30
Settlement date:	Oct. 28 (for $2,746,000), Nov. 8 (for $400,000)
Stock symbol:	OTCBB: MNGA
Stock price:	$0.22 at close Oct. 28
Market capitalization:	$26.37 million

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