Mechanical Technology, Incorporated Announces Closing of Upsized $18 Million Preferred Stock Offering
August 23 2021 - 4:45PM
via NewMediaWire -- Mechanical Technology, Incorporated (“MTI” or
the “Company”), (NASDAQ: MKTY), the parent company of EcoChain,
Inc. ("EcoChain"), a cryptocurrency mining business powered by
renewable energy, and MTI Instruments, Inc. ("MTI Instruments"), a
test and measurement instruments and systems business, today
announced the closing of its upsized underwritten public offering
of 720,000 shares of its 9.0% Series A Cumulative Perpetual
Preferred Stock, par value $0.001 per share, with a $25.00
liquidation preference per share (the “Series A Preferred Stock”),
at a price to the public of $25.00 per share for aggregate gross
proceeds of $18,000,000. Net proceeds to the Company, after payment
of underwriting discounts and fees and estimated offering expenses
payable by the Company, were approximately $16.1 million.
The Series A Preferred Stock has been approved
for listing on the Nasdaq Stock Market LLC under the symbol
“MKTYP.”
The Company also granted the underwriters a
45-day option to purchase up to an additional 108,000 shares of the
Series A Preferred Stock (representing 15% of the shares of the
Series A Preferred Stock being sold in the offering) to cover
over-allotments, if any. The underwriters may exercise this option
at any time and from time to time during the 45-day period from the
closing of the offering. In the event that the Over-Allotment
Option is exercised by the underwriters, in full, that would result
in additional aggregate gross proceeds of approximately $2,700,000
less applicable underwriter discounts and other offering fees and
expenses.
MTI intends to use the net proceeds of the
offering for the acquisition, development and growth of data
centers, including cryptocurrency mining processors, other computer
processing equipment, data storage, electrical infrastructure,
software and real property, and business, product line or asset
acquisitions related to MTI Instruments and for working capital and
general corporate purposes, which include, but are not limited to,
operating expenses.
The Series A Preferred Stock is perpetual and
has no maturity date. The Series A Preferred Stock is not
redeemable prior to August 23, 2026, except under certain
circumstances. On or after August 23, 2026, the Series A Preferred
Stock may be redeemed at the Company’s option, in whole or in part,
from time to time, at a redemption price of $25.00 per share of
Series A Preferred Stock, plus all dividends accumulated and unpaid
(whether or not declared) on the Series A Preferred Stock up to,
but not including, the date of such redemption. The Series A
Preferred Stock may also be redeemed upon the occurrence of certain
delisting or change in control events.
Univest Securities, LLC is acting as the sole book running
manager for this offering.
The offering is being conducted pursuant to the
Company's Registration Statement on Form S-1 (File No. 333-257300),
as amended, including by its Registration Statement on Form S-1MEF
filed pursuant to Rule 462(b), previously filed with and
subsequently declared effective by the Securities and Exchange
Commission (“SEC”). A final prospectus relating to the offering has
been filed with the SEC on August 20, 2021 and is available on the
SEC’s website at http://www.sec.gov. Electronic copies of the final
prospectus relating to this offering may be obtained from Univest
Securities, LLC, 375 Park Avenue, 15th Floor, New York, NY 10152,
by phone (212) 343-8888 or e-mail info@univest.us.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy these securities,
nor shall there be any sale of these securities 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.
About MTI
MTI is the parent company of MTI Instruments,
Inc. and EcoChain, Inc. Through EcoChain, MTI develops
cryptocurrency mining facilities powered by renewable energy that
integrate with the blockchain network. Through MTI Instruments, MTI
is engaged in the design, manufacture and sale of test and
measurement instruments and systems that use a comprehensive array
of technologies to solve complex, real-world applications in
numerous industries. Those include manufacturing, electronics,
semiconductor, solar, commercial and military aviation, automotive
and data storage. For more information about MTI, please
visit https://www.mechtech.com.
Forward Looking Statements
The statements in this press release, including
with respect to the possible offering of additional shares of the
Series A Preferred Stock and the anticipated use of proceeds,
constitute forward-looking statements within the meaning of the
federal securities laws. Forward-looking statements reflect
management’s current expectations, as of the date of this press
release, and are subject to certain risks and uncertainties that
could cause actual results to differ materially from future results
expressed or implied by such forward-looking statements. Actual
results could differ materially from those expressed or implied by
such forward-looking statements as a result of various factors,
including, but not limited to: (1) those risk factors set forth in
the Company's Registration Statement on Form S-1 (File No.
333-257300), as amended; and (2) other risks and uncertainties that
may be detailed from time to time in MTI’s reports filed with the
SEC. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date made.
Except as required by law, the Company assumes no obligation to
update or revise any forward-looking statements.
Contact Information:
Lisa Brennan lbrennan@mtiinstruments.com
Investor Relations:
Kirin Smith, President PCG Advisory, Inc. 646.823.8656
Ksmith@pcgadvisory.com
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