Taronis Technologies TRNX Stock News

Taronis Technologies Inc (NASDAQ: TRNX) is having a relatively strong day in the market early on today. The gains come after the company announced that it has launched a new MagneGas production project. Here’s what’s going on:

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TRNX Stock Pops On Magnegas Production News

In a press release issued early this morning, Taronis Technologies announced that it has commissioned a new 200 KW Venturi plasma arc gasification unit. The, now fully operational, unit is located in Flint Texas.

In the release, TRNX said that the new gasification unit has immediately increased its MagneGas production capacity by more than 50%. The faciity is operating with the goal of meeting the demand for MagneGas by clients in Texas, Louisiana and California. Production from the facility will also help to meet the demand associated with independent industrial gas wholesale partnerships across the East Coast and Midwest United States.

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

This is a significant accomplishment for our engineering team. The Texas market has been highly receptive to our initial marketing efforts for MagneGas. We have been deploying thousands of MagneGas cylinders into the market, and we are now constructing bulk gas containers for new clients. These containers accommodate up to 15 MagneGas cylinders per unit, and are a convenient way for high volume consumers of metal cutting fuels to switch away from acetylene and adopt MagneGas instead.

We see this new production hub rapidly overtaking our Florida production facility, as this is our most modern gas unit, and can out produce our entire Florida operations running one unit one and a half production shifts per week. As our most efficient gasification unit, it should contribute meaningfully to our operational savings and enable us to reduce transportation costs to California and all across the Midwest.

This Is Big News

At the end of the day, the launch of the new production hub is huge for Taronis Technologies and its investors. Importantly, this production hub will greatly expand the company’s capacity to produce MagneGas, which directly relates to revenue growth.

In fact, earlier this year, TRNX announced that it had achieved record MagneGas production, leading strong revenue growth and broken records. With the new unit now online and operational, yet another period of strong revenue growth is likely ahead of us.

This is also great news for investors holding out for the Taronis Fuels spin off. The spin off will give shareholders shares of the new entity on a 5 to 1 basis, and these shares are worth having.

As MagneGas uptake across the United States and around the world continues to grow, the spun off Taronis Fuels will be in the unique position to take advantage of growth in demand. Of course, TRNX will earn royalties on sales, making it great news for those that hold shares of the stock after the spin off.

Talking Spin Off

Talking about the Taronis Fuels spin off, it’s just around the corner. It is expected that the spin off will take place early next month. The move was delayed due to requirements from the NASDAQ surrounding the recent reverse stock split.

Nonetheless, the stock split is now behind us and TRNX is trading well above the minimum $1 bid price requirement. As a result, the spin off is expected to take place without any issues. Of course, we’ll keep you updated as the story continues to unfold.

The Bottom Line

While investors are likely frustrated with the recent declines in TRNX, in my view, the only expanded the opportunity. With strong news from the company’s water-related ventures, even post-spin off the stock is one to hold. This, combined with the fact that free shares in Taronis Fuels will be issued and the recent strong news surrounding the fuel-related endeavors at TRNX only serve to expand the long run opportunity here.

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