Taronis Executes LOI to Acquire Water Conservation Technology Company
Intend to Acquire Controlling Interest in Water Pilot, LLC
PHOENIX, AZ / ACCESSWIRE / May 20, 2019 / Taronis Technologies, Inc., ("Taronis" or "the Company") (NASDAQ: TRNX), a leading clean technology company in the renewable resources and environmental conservation industry, today announced it has entered into a non-binding letter of intent to acquire a controlling interest in Water Pilot, LLC, based in Aventura, FL. The investment shall be payable in Taronis common stock equivalent to $1.275 million in value, and will include conditional earn-out payments if certain revenue and cash flow metrics are achieved over the first two years of operations post-closing. The acquisition is scheduled to close on or before May 31, 2019.
Water Pilot, LLC ("GWP" or "Water Pilot") has a patent pending, ground-breaking technology for water conservation. After two years of pilot testing in the hospitality, restaurant, retail, and high-density living industry verticals, GWP has a demonstrated track record of reducing water utility billings by up to 30% through their water conservation technology. Notable pilot installation clients include Denny's, Famous Dave's, and Wendy's among others. For more information on GWP, please see the following link:
"We are very excited to announce our pending partnership with Water Pilot," commented Scott Mahoney, Chief Executive Officer of Taronis. "We see tremendous synergies between our two leadership teams. The cross sales potential for our combined company is very promising, and has the potential to drive revenue growth for years to come."
Mr. Mahoney continued, "Water Pilot has been very successful in penetrating some of the largest national retailers, restaurant operations, and hospitality companies in the US today. We believe they are on the verge of converting a number of these initial pilot programs into highly scalable national and international client relationships. As we are able to more fully disclose many of these prospective clients, we believe that we will be able to accelerate the adoption of Water Pilot technology with other leading companies in these business sectors."
Mr. Mahoney concluded, "We also see additional synergies across our teams, including strong political and commercial relationships that can accelerate the use of our cyanobacteria technology in Florida. We also have identified several of Water Pilot's prospective relationships whom we believe would be receptive to using our MagneGas product for their key industrial clients. Lastly, we have already identified several promising leads for potential clients we can bring to the table in Europe and the Middle East, allowing us to build on existing relationships. We are highly confident that this transaction has the potential to unlock value across the entire combined organization."
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's fuel technology enables a wide use of hydrocarbon feedstocks to be readily converted to fossil fuel substitutes. The Company is developing a wide range of end market uses for these fuels, including replacement products for propane, compressed natural gas and liquid natural gas. The Company currently markets a proprietary metal cutting fuel that is highly competitive with acetylene. The Company distributes its proprietary metal cutting fuel through Independent Distributors in the U.S and through its wholly owned distributors: MagneGas Welding Supply – Southeast, LLC, MagneGas Welding Supply - South, LLC, and MagneGas Welding Supply - West, LLC. The Company operates 22 locations across California, Texas, Louisiana, and Florida.
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 that trigger toxic algae blooms. 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.
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.
SOURCE: Taronis Technologies, Inc.
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Released May 20, 2019