WARRENVILLE -- Fuel Tech Inc. Friday said it has entered into a definitive agreement with investors to purchase 5 million shares of its stock in a private placement priced at-the-market under Nasdaq rules.
The Company also agreed to issue to the investors common stock purchase warrants, allowing them to buy up to 2.5 million shares of common stock. The combined purchase price for one share of common stock and a warrant to purchase half a share of common stock is $5.16. The warrants have an exercise price of $5.10 per share, will be immediately exercisable, and will have a term that terminates 5.5 years following the effective date.
The gross proceeds from the private placement are expected to be $25.8 million before deducting placement agent fees and other estimated offering expenses. The private placement is expected to close on or about Feb. 17, the company said.
Fuel Tech is a technology company providing advanced engineering solutions for the optimization of combustion systems, emissions control and water treatment in utility and industrial applications.
The securities offered in the private placement have not been registered under the Securities Act. As part of the transaction, the company has agreed to file a resale registration statement with the Securities and Exchange Commission within 10 days of the closing to register the resale of the shares of common stock and shares of common stock underlying the warrants issued in the private placement.