Successful Delivery of First Turkish Gasification Unit
Triggers Acceleration of Manufacturing Timeline
PHOENIX, AZ, June 08, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced the Company has secured a long term lease for a 65,000 square foot manufacturing facility in Peoria, Arizona. The facility has the capacity to manufacture in excess of one hundred Venturi plasma arc gasification units annually.
The new manufacturing facility will also house the Company’s newest MagneGas Welding Supply location. Taronis Fuels has also begun the permitting process to operate its third MagneGas production facility and an industrial gas fill plant hub to support the launch of its heating, ventilation and air conditioning specialty gas distribution business, operated under the TGS brand. The Company is expecting the MagneGas production hub and TGS operations to be fully operational prior to year end. The Company expects to commence its manufacturing operations in early third quarter of 2020.
The Company accelerated the timeline to move forward with the new manufacturing facility based on recent positive events related to two previously disclosed international contracts. The Company has confirmed the successful arrival of a 50KW mobile gasification unit into customs in Turkey. The unit is currently clearing customs and is expected to reach its final destination in Ankara in the coming days.
“This is perhaps one of the most significant accomplishments in our Company’s corporate history,” commented Scott Mahoney, CEO of Taronis Fuels. “With the first international sale of a gasification unit under our executive team, we are steadily executing on our business objectives.”
“This new facility will impact our domestic retail strategy, both in Arizona and California. This facility will also serve as a launch point for our aggressive expansion of TGS into the Phoenix, Tucson and Las Vegas markets. Lastly, with our third MagneGas production facility, we can more assertively market MagneGas throughout California, where we benefit from a 50% price advantage relative to acetylene products.”
“Beyond all of these domestic benefits, we can now meet the anticipated demand for our gasification units in Turkey, Central Asia, the Middle East, and Europe. We are fortunate to have secured the capacity to construct in excess of one hundred gasification units annually at such a facility, and for that facility to be located less than fifteen minutes from our new global headquarters. We look forward to providing our shareholders virtual walkthroughs of both facilities via our social media platforms in the near term,” concluded Mr. Mahoney.
Upon final delivery, the Company is expected to commission the unit for final government inspection in Ankara. This inspection will then satisfy all remaining conditions for the payment of an initial $4.7 million cash deposit on an initial order for five 300KW Venturi plasma arc gasification units with a total purchase price of $27.5 million. The terms of the purchase require an initial 25% payment within 3 days of commissioning the unit presently in transit. A second and third deposit for $4.7 million each is required 30 and 60 days after the initial deposit is made as progress payments.
The final deposit for $4.7 million will then be due upon commissioning the five gasification units in Ankara. The Company expects final deployment would be in first quarter of 2021. A combined $8.75 million in maintenance contracts payments would commence and would be payable in equal installments quarterly over ten years.
The Company is currently coordinating with its joint venture partners to complete the customs clearing process. Once delivered, the Company will schedule a team to complete the commissioning process, most likely in early July. During the commissioning process, the Company will also conduct a ribbon cutting ceremony for key Turkish government officials.
Lastly, the Company will conduct a live demonstration of the gasification process, as well as a MagneGas metal cutting demonstration at the Ankara production facility. These demonstrations will be conducted for strategic marketing purposes. The Company’s joint venture partners have made arrangements for a number of prospective buyers of additional gasification units that would be sold into neighboring countries in central Asia and the Middle East. The Company’s manufacturing process offers several key operational benefits that are appealing to desert-based economies, including fresh water conservation and energy savings.
About Taronis Fuels, Inc.
Taronis Fuels, Inc. is a global producer of renewable and socially responsible fuel products. Our goal is to deliver environmentally sustainable, technology driven alternatives to traditional fossil fuel and carbon-based economy products. We believe our products offer a vastly cleaner solution to legacy acetylene and propane alternatives.
Taronis is also dedicated to providing fundamentally safer solutions to meet the industrial, commercial and residential needs of tomorrow’s global economy. Our products have been rigorously tested and independently validated by global gas authorities as vastly safer than acetylene, the most dangerous industrial gas in use today.
Lastly, we strive to deliver products that offer significant function superiority at a reduced cost to the end consumer. Through these efforts, we support 9 of the 17 United Nations Sustainable Development Goals. For more information, please visit our website at www.taronisfuels.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@Taronisfuels.com