Taronis Completes $3.5 Million Convertible Preferred Offering

 Financing Intended as Interim Financing For 

Expected Initial Order on $165 Million Turkish Contract


PHOENIX, AZ, Nov. 15, 2019 (GLOBE NEWSWIRE) --  Taronis Technologies, Inc., (“Taronis” or “the Company”) (NASDAQ: TRNX), a leading renewable fuel producer serving the global industrial gas markets, today announced that it has closed a $3.5 million convertible preferred equity financing.  The transaction includes a $2.25 fixed conversion price. The investor is not permitted to convert any of the preferred equity for the first 30 days post-closing, and any unconverted balance under this facility shall mature twelve months from closing. Full terms and conditions of the financing are available under the 8-K dated November 15, 2019.

The Special Equities Group, a division of Bradley Woods & Co. LTD., acted as lead Placement Agent and The Benchmark Company acted as Co-Placement agent.

 “The purpose of this transaction is to provide interim working capital for Taronis in advance of an anticipated initial purchase order under the existing $165 million contract in Turkey,” commented Scott Mahoney, CEO of Taronis. “Based on our most recent meetings in Ankara, we believe we have satisfied all conditions required for our counterparty to initiate an initial purchase order.” 

“The $165 million contract calls for a minimum of five 300KW Venturi plasma arc units.  The upfront payment on each unit is $3.75 million, for a total of $18.75 million that will be due within 2 days of formal government approval in Turkey for the manufacturing, sale and distribution of MagneGas.  Based on what we know today, we believe we will formally trigger that payment before the end of 2019.”

“In the event we receive this payment, we anticipate making the voluntary election to prepay the convertible preferred equity financing in full, thus minimizing the potential dilution to our existing shareholders.  We believe this form of financing provides the maximum flexibility in the short term while providing the necessary capital to make the preparations for the commencement of the Turkish contract,” 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’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 US and through its wholly owned distributors doing business as “MagneGas Welding Supply”.  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.

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/

FORWARD-LOOKING STATEMENTS

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.

Investor Contacts:
Michael Khorassani
IR@TaronisTech.com

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Source: Taronis Technologies, Inc.