Taronis Technologies TRNX Stock News

Taronis Technologies Inc (NASDAQ: TRNX) is gaining big in the market today, trading on gains of more than 20%. The gains come after the company announced that it signed a $5 million Letter of Intent (LOI). Here’s what’s going on:

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TRNX Stock Pops On $5 Million LOI

In a press release issued early this morning, Taronis Technologies said that it has entered into a binding agreement with MC Consulting Teknoloji Enerji Danismanlik Sanayl ve Ticaret Limited Sirketi, an energy technology marketing firm in Ankara, Turkey. 

As part of the agreement, TRNX will immediately sell one 300KW Venturi plasma arc gasification unit to MC Consulting for $5 million. In the release, the company said that it has an existing inventory of gasification units. In order to facilitate the immediate sale, the company will ensure that an existing unit is refurbished to a like new condition. This unit is expected to be delivered in Ankara by no later than February 29, 2020. 

The company also announced that it has entered into a multi-year regional marketing agreement. As part of the agreement, TRNX has granted MC Consulting an exclusive territory for the marketing and sale of Venturi gasification units for the production of MagneGas. 

The initial marketing territories included under this agreement are Afghanistan, Albania, Armenia, Azerbaijan, Egypt, Georgia, Iraq, Kazakhstan, Moldavia, Pakistan, Turkmenistan, Ukraine, and Uzbekistan. 

In the release, the company said that the initial gasification unit being sold under this agreement will serve as a fully functional technical sales demonstration unit. In a statement, Scott Mahoney, CEO at TRNX, had the following to offer:

We are very pleased to announce our expanded relationship with MC Consulting. The executive team at MC Consulting has demonstrated a unique ability to gain immediate access to the most senior levels of the Turkish government. They have also done an excellent job facilitating the joint venture to support the initial $165 million contract to deliver 30 gasification units into Ankara. We have the highest level of confidence in MC Consulting as a key partner in Turkey.

With this impressive success, we have decided to significantly expand our commercial ties with MC Consulting. We have already been introduced to multiple heads of state within the region as a direct result of our relationship with MC Consulting. We have been solicited to replicate the joint venture model established in Turkey with several additional countries in the region.

For centuries, Turkey has been the commercial hub connecting Asia, Europe, the Middle East and North Africa. With the successful launch of our Turkish joint venture, we intend to fully leverage this momentum to replicate our business model in many more countries in 2020 and beyond.

With the possible sale of an additional fifty gasification units, this has the potential to generate millions of dollars in additional royalties back to Taronis Technologies. We have recently announced a share buyback program. We hope that shareholders can now begin to better understand why we cancelled our recent proposed financing transaction and instead elected to pursue this strategy. We believe that the opportunity to collect scalable royalty income from international unit sales has the ability to deliver significant value beyond the initial Turkish joint venture.

This Is Big News

The news announced today is a massive step in the right direction for Taronis Technologies. First and foremost, the company sold a $5 million unit, driving much needed funds through the door. 

Moreover, in the release, TRNX said that multiple countries within the target market have already expressed interest in replicating the joint venture model between MC Consulting and TRNX. 

All in all, should all go well here, the new agreement will represent a substantial opportunity to increase revenue ahead. 

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