Adds $0.75 Million in Annualized Sales
TAMPA, Fla., Nov. 01, 2018 (GLOBE NEWSWIRE) -- MagneGas Applied Technology Solutions, Inc. ("MagneGas" or the "Company") (NASDAQ: MNGA), a leading clean technology company in the renewable resources and environmental solutions industries, announced today the completion of an acquisition of an independent industrial gas and welding supply distributor based in Longview, Texas. This transaction, priced at $0.75 million, paid in cash at closing, expands the Company’s geographic footprint in the Texas market as it represents the third acquisition in Texas and the fourth acquisition in the Greater Texas region, which is notable for its world-leading oil/gas and transportation industries.
“This third acquisition in Texas expands our operating efficiency through economies-of-scale as we march towards cementing MagneGas’ dominant market position in the region,” commented Ermanno Santilli, Chief Executive Officer of MagneGas. “The acquisition aligns with our strategy to expand our geographic footprint towards Houston, one of the largest global markets for industrial gases and metal-cutting fuels. We are very excited to combine this newly-acquired team with our other boots on the ground in Texas and improve operational synergies.”
“This acquisition is expected to increase our monthly sales by more than $60,000,” commented Scott Mahoney, Chief Financial Officer of MagneGas. “We also expect this acquisition to play a key role in improving the profitability of our Texas operations as we consolidate our operations and realize meaningful synergies.”
About MagneGas Applied Technology Solutions, Inc.
MagneGas Applied Technology Solutions, Inc. (MNGA) owns a patented process that converts various renewables and liquid wastes into MagneGas® fuels. These fuels can be used 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.
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 MagneGas, 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 distributors, ESSI, Green Arc Supply, Paris Oxygen, Latex Welding Supplies, United Welding Specialties, Trico Welding Supply and Complete Welding of San Diego. ESSI has 4 locations in Florida, Green Arc and Paris Oxygen have 4 locations in Texas, Green Arc and Latex have two locations in Louisiana, Trico has two locations in northern California, and Complete Welding has one location in southern California.
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.
News Release
Investor Contacts:
Tirth Patel
Edison Advisors
T: 646-653-7035
tpatel@edisongroup.com