SANTA ANA — MotorVac Technologies Inc., manufacturer of a proprietary automotive fuel system cleaning process, has filed for an initial public offering of 1.1 million shares of common stock.
Lee Melody, president of the 3 1/2-year-old company, declined comment because the Securities and Exchange Commission is still reviewing the filings. He said MotorVac has not prepared a prospectus for the stock sale. In its application to the SEC, the company said it hopes to price the shares at $5 to $7 each and that Meridian Capital Group would underwrite the offering. No offering date has been set for the stock, which would be traded on the Nasdaq Small Cap market.
Proceeds of the sale, according to the filing, are to be used for capital expenditures including advertising, hiring and the acquisition of new product lines.
MotorVac makes and markets the CarbonClean System for cleaning gasoline and diesel engine fuel systems. The system, consisting of a chemical cleaner and mechanical cleaning equipment, is sold worldwide to repair shops and vehicle fleet operators.
After the offering, the company said it will have 4.27 million shares outstanding.