Taronis Fuels Executes Letter of Intent for $5 Million Purchase Order
Sale of 300KW Venturi Plasma Arc Unit for Immediate Delivery,
Company Executes 13 Country Marketing Agreement for New 50 Units
PHOENIX, AZ, Jan. 06, 2020 (GLOBE NEWSWIRE) -- Taronis Technologies, Inc., (“Taronis” or “the Company”) (NASDAQ: TRNX), a sustainability technologies company, announced that the Company’s former subsidiary, Taronis Fuels, has executed a binding agreement with MC Consulting Teknoloji Enerji Danismanlik Sanayi ve Ticaret Limited Şirketi (“MC Consulting”), an energy technology marketing firm based in Ankara, Turkey.
The agreement calls for the immediate sale of one 300KW Venturi plasma arc gasification unit for $5 million to MC Consulting from Taronis Fuels. Taronis has an existing inventory of gasification units, and it will facilitate the immediate sale of an existing unit to be refurbished to a like new condition. The unit has a target delivery date in Ankara of February 29, 2020.
MC Consulting and Taronis Fuels also entered into a multi-year regional marketing agreement. Taronis Fuels has granted MC Consulting an exclusive territory for the marketing and sale of Venturi gasification units for the production of MagneGas, a renewable metal cutting fuel that replaces acetylene, propane and other traditional industrial gases. The initial marketing territory includes Afghanistan, Albania, Armenia, Azerbaijan, Egypt, Georgia, Iraq, Kazakhstan, Moldavia, Pakistan, Turkmenistan, Ukraine and Uzbekistan.
MC Consulting shall initially market fifty 300KW Venturi plasma arc gasification units at a sales price of $5 million, as well as industry standard royalty payments to be paid periodically, in perpetuity, based on MagneGas production within the territory of each buyer. MC Consulting shall earn an industry standard commission as a marketing consultant on applicable unit sales.
The immediate sale of one gasification unit to MC Consulting will serve as a fully functional technical sales demonstration unit to be based in Ankara. Multiple countries within the marketing territory have already expressed a high level of interest in replicating the joint venture model constructed between MC Consulting and Taronis Fuels. This joint venture has been highly successful in gaining the support of the Turkish government across multiple government ministries, including the conditional ban of acetylene to accelerate the countrywide adoption of MagneGas as the sole metal cutting fuel in Turkey within 24 months.
“We are very pleased to announce our expanded relationship with MC Consulting,” commented Scott Mahoney, CEO of Taronis. “The executive team at MC Consulting has demonstrated a unique ability to gain immediate access to the most senior levels of the Turkish government. They have also done an excellent job facilitating the joint venture to support the initial $165 million contract to deliver 30 gasification units into Ankara. We have the highest level of confidence in MC Consulting as a key partner in Turkey.”
“With this impressive success, we have decided to significantly expand our commercial ties with MC Consulting. We have already been introduced to multiple heads of state within the region as a direct result of our relationship with MC Consulting. We have been solicited to replicate the joint venture model established in Turkey with several additional countries in the region.”
“For centuries, Turkey has been the commercial hub connecting Asia, Europe, the Middle East and North Africa. With the successful launch of our Turkish joint venture, we intend to fully leverage this momentum to replicate our business model in many more countries in 2020 and beyond.”
“With the possible sale of an additional fifty gasification units, this has the potential to generate millions of dollars in additional royalties back to Taronis Technologies. We have recently announced a share buyback program. We hope that shareholders can now begin to better understand why we cancelled our recent proposed financing transaction and instead elected to pursue this strategy. We believe that the opportunity to collect scalable royalty income from international unit sales has the ability to deliver significant value beyond the initial Turkish joint venture,” 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 through a licensing agreement with Taronis Fuels, Inc. Given the potential scale of this royalty agreement and the potential material impact to the financial profile of Taronis Technologies, the Company shall continue to provide updates on material developments within Taronis Fuels.
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 January 6, 2020