MagneGas Signs Agreement to Purchase Gas Distribution Company MagneGas Signs LOI to Purchase Local Gas Distributor and Plans to Relocate Headquarters
MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), a technology company that counts among its inventions a patented process that converts liquid waste into a hydrogen-based fuel, announced that it has signed a Letter of Intent to purchase an established industrial gas distribution company with estimated 2014 gross revenues of approximately $2 million. It also separately signed an agreement to purchase an industrial building nearby for expansion and relocation of its headquarters.
MagneGas has signed a non-binding Letter of Intent to purchase a well-established local industrial gas distributor in Florida providing a platform to grow sales of MagneGas® while offering a wider range of services to industrial gas customers. This distributor is one of the largest independently owned gas distribution companies in the area offering a broad range of welding gas products and services. The company has been in business for more than 20 years and is well established in the area. The Company believes that the purchase of this distributor could offer a platform to more rapidly penetrate the market with MagneGas® fuel, thereby potentially significantly increasing recurring revenue.
Separately, MagneGas has signed a purchase and sale agreement on a nearby industrial building where it intends to move the Company's headquarters and R&D facilities. Apart from being a larger, more suitable headquarters, its location, which is closer to customers and suppliers in Tampa, Florida, will greatly facilitate logistics. Existing properties at the current MagneGas headquarters will likely be placed on the market for sale. These purchases are subject to due diligence and negotiation of satisfactory definitive agreements. Details surrounding these purchases will be provided once definitive agreements have been signed, which is expected in approximately 90 days.
"Signaling confidence with our new product MagneGas® 2, we now are entering the next phase of our expansion into the industrial gas market with the intent to purchase a local well-established gas distributor. This purchase would provide a springboard to introduce and sell MagneGas® 2 to a wider audience of customers around the Tampa Bay area," stated Ermanno Santilli, CEO of the Company. "Separately, we intend to purchase a nearby property which will allow expansion of the headquarters for MagneGas Corporation as we continue to attract customers and partners from around the world."
About MagneGas Corporation
Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is a technology Company that counts among its inventions, a patented process that converts liquid waste into hydrogen based fuels. The Company currently sells MagneGas® into the metal working market as a replacement to acetylene. It is also selling equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications. For more information on MagneGas®, please visit the Company's website at www.MagneGas.com.
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