ClearSign Combustion Corporation Announces Rights Offering
MSK client ClearSign Combustion Corporation (NASDAQ: CLIR) ("ClearSign" or the "Company"), an emerging provider of industrial combustion technologies that help to reduce emissions and improve efficiency, announced on Wednesday, December 7th, that its board of directors has approved a rights offering.
The following are the key terms of the rights offering:
- Rights will entitle existing shareholders to purchase a unit consisting of one share of common stock and one warrant for to purchase one share of common stock at a subscription price of $4.00 per unit.
- Holders of common stock on the record date, December 19, 2016, will be able to participate in the rights offering.
- Each stockholder will receive rights equal to 20% of the shares of common stock they hold on the record date. If fully subscribed, the offering would provide gross proceeds of $10.4 million.
- Rights are non-transferrable and there are no over-subscription rights.
- Rights must be exercised by January 13, 2017 and closing is expected in late January.
- The warrant exercise price is $4.00 through the expiration date, which is two years after the closing of the rights offering.
- The Company will use its best efforts to list the warrants for trading on NASDAQ.
- MDB Capital Group LLC will act as dealer-manager and placement agent to offer units not subscribed for by shareholders on the same terms as the units sold under the subscription rights.
MSK served as ClearSign’s legal counsel in the offering and was led by Kevin Friedmann, Chairman of the firm’s Corporate & Business Transactions Department. The MSK team also included Mary Ann Sapone.
Doug Gold, Chief Marketing Officer