Taronis Technologies TRNX Stock News

Taronis Technologies Inc (NASDAQ: TRNX) is seeing gains early on in the pre-market hours this morning, and for good reason. The comapny announced new information with regard to the spin off of Taronis Fuels, a move that I believe will greatly expand shareholder value. Here’s what’s going on:

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TRNX Stock Gains On Taronis Fuels Spinoff News

Recently, Taronis Technologies announced that it would be spinning off its wholly owned subsidiary, Taronis Fuels. In a press release issued this morning, the company provided more information with regard to the spin off.

First and foremost, we already knew that upon the spin off, Taronis Fuels would receive an exclusive, global license for all existing patents held by TRNX. This includes any applications of existing and future patents related to the production of fuel for power generation.

In the release, the company said that Taronis Fuels will pay a 7% royalty on any revenue generated from the sale of gasification units or fule products like MagneGas.

Also, when the spin off was announced, the company said that it would be issuing shares on a one to one basis upon the closing of the agreement. That means that for each share of TRNX stock held as of the record date, investors will receive one share of Taronis Fuels.

In the release, this morning, the company said that August 15, 2019 will be the record date. However, for investors to receive shares as part of the spinoff, they must be shareholders by August 15, 2019 and hold these shares until the stock dividend distribution date, which is expected to be September 1, 2019.

This Spinoff Is A Big Deal

At the end of the day, the spinoff is a very strong move for TRNX. First and foremost, through the licensing agreement, the company will receive royalties on Venturi Plasma Arc gasification unit sales as well as the sales of fuels generated by Taronis Fuels. This will likely help to bulster revenue, especially considering that Taronis has announced recent deals to bring the Venturi Plasma Arc system to Turkey and some South American companies.

Moreover, the spinoff will allow Taronis Fuels to continue growing its fuel-related business, providing 100% of its attention to this goal. As such, the company will likely see strong growth ahead.

On the TRNX side of the coin, the spinoff will allow the company to focus on its water treatment and other water-related assets. In particular, the recent announcement that the company’s service led to a significant reduction of cyanobacteria in a lake in Florida sets the stage for several municipal contracts ahead.

All in all, not only will the spinoff likely lead to a strong return of value on the fuels side of the coin, it will also allow TRNX to focus more on monetizing its water treatment service and other products and services, only extending the potential value creation ahead.

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