Company Curtails Future Royalty Obligations,
Controls 100% of Intellectual Property Rights for Future Development
PHOENIX, AZ, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced it has acquired MagneGas IP, LLC, from BBHC, Inc, (“BBHC”) as well as all related patents owned directly by BBHC. Total consideration for the transaction was the assumption of approximately $250,000 in liabilities and $1 million in restricted common stock of Taronis.
The transaction benefits the Company in several ways. First, the Company now irrevocably owns the entire patent portfolio it had previously licensed from BBHC. Second, the transaction limits the potential cost of future royalties significantly. Under the prior licensing agreement, Taronis had previously agreed to pay a 7% royalty for the exclusive use of all fuel applications derived from the acquired patent portfolio. As part of the transaction, royalty payments remain unchanged for the first five years, but cease entirely thereafter. This has the potential to save the Company significant costs in the future as it looks to expand its sales of MagneGas, the only renewable metal cutting fuel, new fuel products for the propane and other heating end markets, and the sale of its proprietary Venturi plasma arc gasification units.
The transaction also significantly simplifies the business model for near term business objectives. The Company is actively exploring an uplisting to a national exchange, and this new, simplified business model where the entire intellectual property portfolio is proprietary, wholly owned and actively used for ongoing commercial activities is expected to enhance the Company’s business narrative meaningfully.
“We are very pleased to complete this transaction as structured,” commented Scott Mahoney, CEO of Taronis Fuels. “We are working diligently to launch several relatively large commercial opportunities involving our technology overseas in the coming quarters. We believe that as those activities begin to translate into tangible financial results, the geographic footprint of commercial opportunity for our Company will expand exponentially. We felt compelled to act now, take control of the underlying intellectual property, and accelerate the development of new fuel products for new markets.”
“This transaction is almost entirely about our ability to internally fund and drive the pace of new development. We want to launch our fourth-generation gasification prototype, which has the potential to reduce our cost to produce synthetic fuels by up to 90%. It would also enable us to begin directly gasifying new solid feedstocks such as plastics, forest fire biomass, and a wide range of other materials.”
“We can now fully drive the pipeline of new synthetic fuel product development. We can accelerate the validation of our first renewable propane substitute. We are also looking at applications to use different variations of our fuel product as a cost-effective additive to traditional fossil fuel combustion engines, making them burn cleaner, with a reduced carbon footprint.”
“To accomplish this, we have begun building out full scale, science-driven research and development capabilities at our new Peoria, Arizona technical campus. We are not just looking to drive process improvement; we want to innovate beyond our current expertise. To accomplish this objective, we are actively seeking PH.D. level expertise in physics, chemistry, combustion engineering, mechanical engineering, electrical engineering, and a wide range of related skillsets. We intend to build a world-class technical team to significantly expand the addressable end user applications for our patent portfolio in early 2021. We aspire to be the global leader in cost-effective, hydrogen-based fossil fuel replacement products,” concluded Mr. Mahoney.
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