Mechanical Technology Inc. (MTI, Albany, NY) announced that it has entered into an agreement with Fletcher International Ltd., a leading institutional investor, for the purchase of $10 million of MTI common stock with two possible additional investments that may aggregate up to another $26 million in sales of MTI common stock before December 31, 2006.
The proceeds of the offering are to be used primarily to support the operations of MTI MicroFuel Cells Inc., a subsidiary of the company, and a leader in the design, development and commercialization of direct-methanol fuel cells, which are intended to be used as a wireless power source for portable devices in consumer, commercial and military markets. MTI Micro plans to introduce its first product by the end of 2004.
"This initial $10 million investment will bring MTI's receivables from the sale of securities and cash position to a total of approximately $24 million. The company believes the proceeds of this placement will support MTI Micro's efforts through its first product introduction by the end of 2004, and should also provide for the development of additional products. MTI expects cash used in operations and capital expenditures to total approximately $1.5 million per month in 2004," said Dale Church, chairman and CEO of MTI and chairman of MTI Micro.
