Taronis Technologies TRNX Stock News

Taronis Technologies Inc (NASDAQ: TRNX) is making its way for the top in the market this morning after the company announced that it has entered into a memorandum of understanding that will result in the formation of a joint venture. The announcement led to premarket gains in excess of 10%. Heres what’s going on:

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TRNX Stock Soars On Memorandum  Of Understanding

As the news flow surrounding Taronis Technologies continues, the stock is soaring. In a press release issued early this morning, the company said that it has entered into a $14 million memorandum of understanding.

The MOU was signed with a strategic partner in El Salvador. Under the MOU, the two companies will form a new joint venture, known as Taronis, S.A. de C.V. Taronis Fuels, Inc. Once formed, the joint venture will be spun-out of TRNX, which is expected to take place on September 1, 2019.

The company said that it will own about 90% of the new joint venture. The new venture will have exclusive rights to production, marketing and the sale of MagneGas in El Salvador.

In the release, TRNX said taht the El Salvador economy is USD denominated and highly receptive to United States commercial partnerships. Moreover, El Salvador is a leading importer of fuel with the largest manufacturing industries in the region including petroleum, light metals, chemicals, fertilizer and food and beverage processing.

Importantly, the partner that Taronis Technologies has decided to move forward with has a longstanding and expansive fuels distribution relationship within the region. Moreover, under the terms of the MOU, $14 million in debt financing will be provided to cover the sale of up to five 300KW Venturi Plasma Arc gasification units.

Outside of the MOU, TRNX and the partner included in the deal are currently working to expand their partnership to other Latin American countries. In particular, the parties are in discussions about moving into Panama and other USD denominated economies with significant tax advantages.

If the joint venture moves to 4 of the priority markets that are being considered, 75 gasification units would be required and of course, purchased by the joint venture. Should this come to completion this woul bring the purchase value of these units to $210 million.

In a statement, Scott Mahoney, CEO at TRNX, had the following to offer:

Momentum is building across multiple promising markets for our technology. Latin America has several key similarities with our expansion strategy in Europe and the Middle East and has important geographic advantages given its proximity to the United States. Like the Netherlands and the United Arab Emirates, we plan to launch our initial base of operations for the region in a meaningful but relatively finite geographic territory. By this approach, we will work diligently to quickly gain critical mass in El Salvador, optimize our marketing strategy, and then look to leverage our experience to replicate this model in neighboring markets like Panama, Guatemala, and Colombia.

The Story Just Keeps Getting Better

In recent weeks, we’ve seen quite a bit of news out of Taronis Technologies as the company works to pull itself out of a hole. Nonetheless, it looks like the efforts being made by the company are proving to be fruitful.

Before the announcement of expansion into El Salvador and potential expansion into 4 other key markets, the company announced a $165 million deal to bring its proprietary gasification units and MagneGas to Turkey.

Moreover, before this expansion, the company clearly perfected its Venturi Plasma Arc Gasification technology. Recently, TRNX has informed investors that it has reached record magnegas production with a single unit, leading to record revenues. Moreover, with two more units coming online in the current quarter, more records are likely to be broken ahead.

Outside of MagneGas and the company’s proprietary technology that produces it, we’re seeing quite a bit of positive news out of the company’s water treatment and technology arm. Not only has the company recently proven its ability to significantly reduce cianobacteria in lakes through a service provided in a lake in Florida, it also recently signed a water pilot project agreement with a large Holiday Inn franchisee. All in all, whether you’re looking at the gas side of the business or the water side, things are starting to look up in a big way!

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1 COMMENT

  1. Is the for real or just a BS pump? Seems all their new contracts and ventures are outside the US with little evidence and hard to verify. El Salvador? Lol

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