Magnolia Solar Corporation Completes Reverse Merger, Raises $1.33 Million and Becomes a Publicly Traded Corporation
New York, NY, March 1, 2010 – On December 31, 2009, Magnolia Solar Corporation, a previously privately held Delaware corporation (“Magnolia Solar” or the “Company”), a developer of nanostructurebased thin film, high efficiency solar cells, completed a reverse merger into Mobilis Relocation Services Inc.
Following the closing of the merger, the Company issued 26.6 units in a private placement (the “Private Placement”), consisting of an aggregate of $2,660,000 of Original Issue Discount Senior Secured Convertible Notes and five-year callable warrants to purchase an aggregate of 2,021,600 shares of common stock exercisable at $1.65 per share, for $50,000 per unit for aggregate proceeds to the Company of $990,000. Midtown Partners & Co., LLC (“Midtown” or the “Placement Agent”) served as the Company’s placement agent for certain investors in the Private Placement and each received seven-year warrants to purchase a number of shares of common stock equal to 10% of the purchase price of the Units purchased through such Placement Agent, exercisable at $1.05 per share.
Midtown Partners & Co., LLC is an independent investment bank focused on facilitating growth by providing creative and unique financial solutions to high growth companies within the lower middle market (enterprise values less than $250 million) and emerging market sectors. Such companies seek investment banking services from a firm with a unique understanding of the marketplace and the characteristics of smaller transactions.
The members of Midtown Partner's Investment Banking Group have gained broad experience, considerable industry knowledge and extensive structuring proficiency at some of Wall Street's recognized firms, thereby becoming a valuable resource to our clients. Every client engagement is led by a senior level professional who works closely with the company's management to ensure that the size and parameter of each financing is designed to meet the needs of the business.
Our investment banking team strives to deliver creative, customized corporate finance solutions that address our clients' critical business needs. Midtown Partners has offices in New York City, Tampa, and Boca Raton, Florida. For more information, please email info@midtownpartners.com or visit www.midtownpartners.com.
About Magnolia Solar Corporation
Magnolia Solar Corporation is a developer of proprietary, low-cost commercial solar technologies. Leveraging over $8 in highly selective government funding (DARPA, NASA, DoD, NSF, NYSERDA), Magnolia uses a nanostructure-based approach on new materials to develop high-efficiency thin film solar cells that will offer significant gains in efficiency (up to 17%) at a lower cost (less than $1/watt) than traditional crystalline silicon and polysilicon solar cells.
The company has shown excellent performance on numerous government projects, leading to continued government support. The thin film solar technology is unique in that it offers the greatest solar spectrum photovoltaic capture of energy, including unprecedented efficiencies under sub-optimal conditions (cloud cover, fog, etc.) The company is led by a strong management team with significant scientific and commercial experience.
Magnolia Solar Corporation began trading on February 8, 2010.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our investment banking business. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of the Company's business. These risks, uncertainties and contingencies include those set forth in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2008, as amended, and other factors detailed from time to time in its other filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Further, investors should keep in mind that the Company's quarterly revenue and profits can fluctuate materially depending on many factors, including the number, size and timing of completed offerings and other transactions. Accordingly, the Company's revenue and profits in any particular quarter may not be indicative of future results. The Company is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
