Mechanical Technology, Incorporated Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

Mechanical Technology, Incorporated (NASDAQ: MKTY) has completed a firm commitment underwritten public offering of 2,419,355 shares at a price of $6.20 per share, raising gross proceeds of $15 million. After expenses, net proceeds are approximately $13.35 million. The accompanying warrants allow the purchase of up to 604,839 shares at an exercise price of $8.24. Funds will be used for data center acquisitions, cryptocurrency mining equipment, and general corporate purposes, enhancing growth potential in the renewable energy sector.

Positive

• Gross proceeds of $15 million from public offering.
• Net proceeds of approximately $13.35 million will fund the acquisition and development of data centers and cryptocurrency processors.
• Potential additional gross proceeds of $2.25 million if underwriter options are fully exercised.

Negative

• Potential dilution risk from new shares issued in public offering.

ALBANY, N.Y., April 29, 2021 /PRNewswire/ -- Mechanical Technology, Incorporated ("MTI" or the "Company"), (NASDAQ: MKTY), the parent company of MTI Instruments, Inc. ("MTI Instruments") and EcoChain, Inc. ("EcoChain"), a cryptocurrency mining business powered by renewable energy, announced today the closing of its firm commitment underwritten public offering of 2,419,355 shares of its common stock, together with accompanying warrants to purchase up to 604,839 shares of common stock at a combined public offering price of $6.20. The warrants have an initial exercise price of $8.24 per share, are immediately exercisable and have a term of five years from the date of issuance.

The gross proceeds to MTI from this offering are $15,000,000 less underwriting discounts and other offering expenses, resulting in aggregate net proceeds to the Company of approximately $13,353,639.  In the event that an option granted to the underwriters in the offering to purchase an additional 362,903 shares of common stock and warrants to purchase up to an additional 90,726 shares of common stock, on the same terms as the securities sold in the Offering, is exercised by the underwriters, in full, MTI would receive additional aggregate gross proceeds of approximately $2,250,000 less applicable underwriter discounts and other offering expenses.

MTI intends to use the net proceeds from this offering, together with other available funds, to fund 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 (i.e. land and buildings) and business, product line or asset acquisitions related to MTI Instruments, as well as for working capital and other general corporate purposes.

Univest Securities, LLC is acting as the sole book running manager for this offering.

About MTI

MTI is the parent company of MTI Instruments, Inc. and EcoChain, Inc. Through EcoChain, MTI is developing 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, including manufacturing, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage. For more information about MTI, please visit https://www.mechtech.com.

About Univest Securities, LLC

Registered with FINRA since 1994, Univest Securities, LLC provides a wide variety of financial services to its institutional and retail clients globally including brokerage and execution services, sales and trading, market making, investment banking and advisory, wealth management. It strives to provide clients with value-add service and focuses on building long-term relationship with its clients. For more information, please visit: www.univest.us

Forward Looking Statement

This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current expectations, as of the date of this communication, and involve certain risks and uncertainties. Forward-looking statements include statements herein with respect to the successful execution of the Company's business strategy. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. Such risks and uncertainties include, among other things, our ability to establish and maintain the proprietary nature of our technology through the patent process, as well as our ability to possibly license from others patents and patent applications necessary to develop products; the availability of financing; the Company's ability to implement its long range business plan for various applications of its technology; the Company's ability to enter into agreements with any necessary partners; the impact of competition, the obtaining and maintenance of any necessary regulatory clearances applicable to applications of the Company's technology; and management of growth and other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.

Contact Information:
Jess Olszowy
jolszowy@mtiinstruments.com

Investor Relations:
Kirin Smith, President
PCG Advisory, Inc.
646.823.8656
Ksmith@pcgadvisory.com

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SOURCE Mechanical Technology, Incorporated

FAQ

What was the total amount raised in the MKTY public offering?

Mechanical Technology raised gross proceeds of $15 million from the public offering.

What are the intended uses of the proceeds from MKTY's offering?

The proceeds will fund data center acquisitions, cryptocurrency mining equipment, and general corporate purposes.

What is the exercise price for the warrants included in the MKTY offering?

The warrants have an initial exercise price of $8.24 per share.

How many shares were offered in the MKTY public offering?

A total of 2,419,355 shares were offered in the public offering.