Taronis Terminates Nasdaq Panel Hearing Request Process
Company Accepts Outstanding Nasdaq Delisting Determination
PHOENIX, AZ, April 30, 2020 (GLOBE NEWSWIRE) -- Taronis Technologies, Inc., (“Taronis” or “the Company”) (NASDAQ: TRNX), a sustainability technologies company with patented water decontamination and conservation applications, today announced that the Company has notified Nasdaq that it will no longer contest the Nasdaq delisting notice sent to the Company on March 12, 2020. The Company had previously requested a panel hearing with Nasdaq, and was granted a hearing originally scheduled for April 16, 2020. The panel hearing was ultimately postponed on short notice, and has yet to be rescheduled. Nasdaq announced the suspension of certain ongoing listing requirements, including the minimum bid price rule the evening of April 16, 2020.
Despite the temporary regulatory relief provided by the suspension of the minimum bid price rule, the Company has decided to comply with Nasdaq’s delisting request as a result of several factors.
First, the only qualitative factor cited in the Nasdaq letter of non-compliance was the failure to satisfy the $1.00 minimum bid price. With the catastrophic impact of the coronavirus pandemic, the Company’s common stock share price has deteriorated significantly, to a point where it does not believe that the $1.00 compliance is possible through organic business activities prior to June 30, 2020.
Second, the Company has evaluated a number of possible corporate transactions with third parties that could possibly facilitate Nasdaq compliance. In every instance, the completion of such transactions would likely require a highly aggressive corporate restructuring, including a significant reverse split and the increase in authorized and outstanding shares above the current shareholder approved limits.
Lastly, none of the prospective merger candidates expressed an interest in retaining the existing assets of the Company in shareholder hands due to a desired reverse merger. The Company has evaluated the significant short term cash expenses required to complete such a speculative transaction, as well as the protracted regulatory approval process, coupled with the likely extreme dilution required to existing shareholder’s ownership and determined that the best path to preserve shareholder value is to accept the requested delisting request.
“The Company believes our current patent portfolio, expected future royalty income, and emerging commercial application for our patent portfolio should not be taken out of our shareholder’s hands in the immediate future through a possible reverse merger,” commented Scott Mahoney, CEO of Taronis. “We also wish to limit further dilution wherever possible, and all of the transactions we have evaluated would require a very sizable reverse split ratio that we believe would destroy much of our shareholder’s value.”
“We believe that once the short term disruptions to our business have passed, in the coming quarters, we will be able to resume our sterilization technology commercialization efforts. We also hope to eventually be able to regain momentum with hotels, restaurants, retirement homes, hospitals and other clients of Water Pilot.”
“In the short term, we will continue to evaluate a wide range of corporate initiatives to help unlock shareholder value on every front. These are extremely uncertain and unique times, and we are going to explore every avenue possible for our shareholders,” concluded Mr. Mahoney.
About Taronis Technologies, Inc.
Taronis Technologies, Inc. (TRNX) owns a patented plasma arc technology that enables two primary end use applications for fuel generation and water decontamination. The Company holds a 7% royalty on the global use of its fuel generation intellectual property. The initial commercialized renewable fuel product license is disrupting an $8 billion global metal cutting fuel market.
The Company’s technology can also be implemented for the decontamination of waste water, including sterilizing water, eradicating all pathogens. The technology is being tested to determine if it can completely eliminate pharmaceutical contaminants such as antibiotics, hormones and other soluble drugs suspended in contaminated water. Lastly, the technology process is capable of reducing or eliminating other contaminants, such as harmful metals, as well as nitrogen, phosphorus, and potassium levels. The technology has prospective commercial applications in the agricultural, pharmaceutical, and municipal waste markets. For more information on Taronis, please visit the Company's website at http://www.TaronisTech.com.
Taronis also owns a controlling interest in Water Pilot, LLC. The WATER PILOT® System immediately reduces water consumption and provides you with live remote consumption monitoring for long term leak protection and water asset management. An integral, client based alarm and notification system that reports to any mobile device. Water Pilot may be appropriate for a wide range of businesses or properties with a water meter. For more information, please visit our website at www.gowaterpilot.com/
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
Released April 30, 2020