Leading technology company, MagneGas, Corp. (NASDAQ:MNGA), announced that it has entered into its largest equipment sale to date with a German company for $2.65 Million.
TAMPA, FL–(Marketwired – October 17, 2016) – MagneGas Corporation (“MagneGas” or the “Company”) (MNGA) (MNGA) a leading technology Company that counts among its inventions a patented process that converts renewable and waste liquids into innovative MagneGas2® fuel, a replacement for acetylene, announced today that it has entered into its largest equipment sale to date with a Letter of Intent (“LOI”) to manufacture and deliver certain equipment and supplies to a company based in Germany. MagneGas will receive $2.65 million for its proprietary Gasification and Sterilization systems and will supply MagnesGas2® fuel and cylinders. The sale marks a new era for the Company as it seeks to expand the availability of its technology and MagneGas2® fuel across the European continent in the global $5 billion metal cutting fuel market.
Under the terms of the LOI, MagneGas will manufacture and deliver: 1) A 300KW stationary Gasification system: 2) A 100KW mobile Sterilization system: 3) 250 cylinders full of MagneGas2®; and 4) 50 MagneGas regulators. A deposit of $25,000 has been received, with progress payments totaling $2.625 million due upon signature of the definitive agreements, construction completion and delivery of systems with related supplies. The LOI calls for exclusive distribution rights in Germany, with an option to purchase rights to certain additional countries with system deployments.
MagneGas has agreed to keep the name of the German company and the exact details of the LOI confidential until the parties enter into the definitive agreements. The Gasification system will be used to produce MagneGas2® fuel to sell into the German market with the potential of other markets coming online soon after. The Sterilization system will be used for demonstrations and small service contracts with the goal of entering the agriculture and municipal wastewater treatment markets in Germany.
Ermanno Santilli, CEO of MagneGas Corporation stated: “The entire MagneGas team is excited about this opportunity because it holds the potential to open up target markets that desperately need our technology and the fuel it can produce. This sale is the largest sale in the history of MagneGas and will provide us the opportunity to expand further into Europe. We believe this is one of the most significant events in the Company’s evolution and will help define our strategy for 2017 and beyond.”
The MagneGas IR App is now available for free in Apple’s App Store for the iPhone or iPad http://bit.ly/AfLYww and at Google Play http://bit.ly/Km2iyk for Android mobile devices.
To be added to the MagneGas investor email list, please email firstname.lastname@example.org with MNGA in the subject line.
About MagneGas Corporation
MagneGas® Corporation (MNGA) owns a patented process that converts various renewables and liquid wastes into MagneGas fuels. These fuels can and are being used by some of the nation’s most recognized businesses and governmental organizations as an alternative to natural gas or for metal cutting. The Company’s testing has shown that its metal cutting fuel “MagneGas2®” is faster, cleaner and more productive than other alternatives on the market. It is also cost effective and safe to use with little changeover costs. The Company currently sells MagneGas2® into the metal working market as a replacement to acetylene and is working with such recognized leaders as the US Army, US Navy, the Fire Department of New York (FDNY), several of the largest utilities in the United States and most recently, expanded its presence with one of the world’s premier auto manufacturers. MagneGas2® is being touted as the next big thing in the metal cutting and fabrication sectors and as the only truly safe and superior replacement of the legacy fuel acetylene.
The Company also sells 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 MagneGas2®, please visit the Company’s website at http://www.MagneGas.com.
The Company distributes MagneGas2® through Independent Distributors in the U.S. and through its wholly owned distributor, ESSI (Equipment Sales and Services, Inc.). ESSI has four locations in Florida and distributes MagneGas2®, industrial gases and welding supplies. For more information on ESSI, please visit the company’s website at http://www.weldingsupplytampa.com
Shares of MagneGas, Corp. (NASDAQ:MNGA) are actively moving +38.333% thus far today on the news and have traded in the range of $0.176 – 0.290 during the session. A number of research firms have recently weighed in on the stock, providing future price targets. The covering firms currently have a consensus one-year price target of $4.000 on the stock. This is according to brokerage analysts polled by Thomson Reuters First Call. This is the average number from the individual targets provided by the firms. Analysts are projecting earnings per share of $0.000 for the next fiscal quarter. For the current year, analysts are predicting earnings of $-0.070 per share according to First Call.
In looking at where the stock is trading on a technical level, the stock is trading -19.677% away from its 50-day moving average of $0.310. Based on the most recent available data, the equity is -69.634% off of its 52-week high of $0.820 and +398.000% away from its 52-week low which is $0.050.
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Today, the stock opened at $0.180 and the last bid at the time of writing stood at $0.249. During the session thus far, the equity dipped down to $0.176 and touched $0.290 as the high point. MagneGas, Corp. (NASDAQ:MNGA) Limited has a market cap of $35.04M and has seen an average daily volume of 174068 over the past three months.
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