Univest Securities, LLC, a member of FINRA and SIPC, and a
full-service investment bank and securities broker-dealer firm
based in New York, today announced the closing of an upsized
underwritten public offering for the sale of 720,000 shares of 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 by its client
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. 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 is a new issue of
securities with no established trading market. The Series A
Preferred Stock has been approved for listing on the Nasdaq Stock
Market LLC under the symbol “MKTYP”.
The Company has 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, when available, 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 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.
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
This press release contains forward-looking
statements as defined by the Private Securities Litigation Reform
Act of 1995. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements that
are other than statements of historical facts. These statements are
subject to uncertainties and risks including, but not limited to,
product and service demand and acceptance, changes in technology,
economic conditions, the impact of competition and pricing,
government regulations, and other risks contained in reports filed
by MTI with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of MTI, are expressly qualified by this
cautionary statement and any other cautionary statements which may
accompany the forward-looking statements. In addition, Univest
Securities, LLC and the Company disclaim any obligation to update
any forward-looking statements to reflect events or circumstances
after the date hereof.
For more information, please
contact:
Univest Securities, LLC
Edric
GuoChief Executive
Officer375 Park Avenue #1502New York, NY 10152Phone: (212)
343-8888Email: info@univest.us
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