SAN FRANCISCO, Nov. 18, 2010 /PRNewswire-FirstCall/ -- Medizone International, Inc. (OTC Bulletin Board: MZEI) (OTCQB: MZEI) announced today that it has entered into a common stock purchase agreement establishing a $10,000,000 equity line with Mammoth Corporation of Lake Zurich, IL. The agreement is for a two-year term. Under the terms of the agreement, Mammoth will purchase the Company's common stock at a 25% discount to the average closing bid price over a five day pricing period, with the funds transfer for the stock purchase to be made to the Company within 24 hours following the last day of the pricing period. The maximum investment limit for any one draw down of the equity line is $500,000 and there cannot be more than two draw downs during any 30-day period. There are no options or warrants associated with this agreement. The Company determines when and how much of the investment commitment it wishes to utilize at any given time.
Edwin Marshall, CEO of Medizone, commented, "Previously, Medizone has traditionally been funded by private placements of restricted securities to accredited investors. Until now this has served the company well as we have managed to secure the revenues needed to move forward with our projects, without having to resort to toxic financing of any kind that would cripple the company in the long term. Until we were approached by Mammoth Corporation, Medizone had never been offered a funding package by an institutional investor that we believed would truly enhance shareholder value and also ensure we had the funds available to increase our cash burn significantly when needed, which is exactly what is needed at this time in order to finalize our various research projects and enter into production with equipment suitable for a number of different market segments. We believe that this $10,000,000 funding commitment in the
|SOURCE Medizone International, Inc.|
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