MagneGas Receives Final Progress Payment from Gasification System Sale to Gulf Coast Industrial Gas Company
Gasification System Completed and Shipped to Louisiana Industrial Gas Company; Final $191,500 Payment Received
TAMPA, Florida, January 12, 2017 /PRNewswire/ --
MagneGas Corporation ("MagneGas" or the "Company") (MNGA) a leading clean technology company in the renewable resources and environmental solutions industries, announced today that it has received the final contracted progress payment and has successfully shipped the Plasma-Arc Gasification system that was previously announced as contracted ("Gasifier Agreement") for sale to Green Arc Supply, LLC of Louisiana ("Green Arc").
Pursuant to the terms of the Gasifier Purchase Agreement, the Company has received a total of $775,000 towards the construction of the system. The final payment of $191,500 was paid after the factory acceptance and the system has shipped to the buyer, Green Arc. The Gasifier Purchase Agreement also calls for royalty payments which amount to $0.02 per cubic foot produced by Green Arc.
Under the terms of the Gasifier Purchase Agreement, Green Arc will have exclusive distribution rights for certain regions of Louisiana and Texas with non-exclusive distribution rights in remaining regions of Louisiana and Texas and all of Arkansas, Mississippi and Oklahoma. Green Arc has the right to expand their exclusivity in those states with the purchase of additional systems. The Company believes that entering into future agreements with Green Arc for the distribution of its products will result in significant capital infusions through additional equipment sales and receipt of royalty payments.
Ermanno Santilli, CEO of MagneGas Corporation stated: "To continue our great start of 2017, we have officially shipped our very first equipment sale to a customer in the United States. This milestone is an indication of our ability to expand the industrial gas business organically through equipment sales and retail expansion. We are very confident that this sale will result in additional equipment sales to this customer and look forward to the revenue impact this relationship will have in 2017 and beyond."
About MagneGas Corporation
MagneGas® Corporation (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 distributor, Equipment Sales and Services, Inc. ("ESSI"). 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
To be added to the MagneGas investor email list, please email firstname.lastname@example.org with MNGA in the subject line.
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.
KCSA Strategic Communications
SOURCE MagneGas Corporation
Released January 12, 2017