Taronis Technologies, Inc., (“Taronis” or “the Company”)
(NASDAQ: TRNX), a leading renewable fuel producer
serving the global industrial gas markets, today announced the
formation of a new joint venture within the Republic of Turkey. The
new Turkish company is called Taronis Fuels Turkey Gas Enerji
Sanayi ve Ticaret Limited Şirketi (“Taronis Turkey”). This new
entity is domiciled in Ankara, and is currently owned 74% by
Taronis Fuels, Inc, and 26% by MC Consulting Teknoloji Enerji
Danişmanlik Sanayi ve Ticaret Limited Şirketi (“MC Consulting”). It
is expected that a third party will enter into this joint venture
prior to year end, reducing Taronis Fuels stake to approximately
48%.
The purpose of this new joint venture will be
threefold. First, this is a precondition to the commencement of an
existing $165 million purchase order for thirty 300KW Venturi
plasma arc gasification units. The contract dated July 17, 2019
between Taronis Fuels and TA Grup Medya Enerji Sanayi Ticaret
Anonim Şirketi (“TA Grup”) is scheduled to be assigned to MC
Consulting. No other aspects of the existing $165 million contract
would be affected by the assignment.
Second, the new joint venture is expected to
significantly expand the scope of operations within the Republic of
Turkey. The government of Turkey has asked the joint venture to
consider a radical expansion of the scope of operations to support
a comprehensive safety program in Turkey. To accomplish this, the
joint venture would be responsible for forming additional
commercial relationships for the purpose of launching manufacturing
facilities in Turkey for the production of ancillary equipment
required for the daily use of MagneGas as a replacement for
existing metal cutting fuels such as acetylene, propylene and
propane. This would include, but not be limited to the valves,
regulators, torches, hoses and cylinders currently approved by
Taronis for the use of MagneGas in the US today.
Lastly, the newly formed joint venture would
partner with the various Turkish regulators to form a compressed
gas, welding and metal cutting safety institute. The purpose of
this organization would be to provide ongoing training and safety
inspections to ensure the global best practices for the safe
handling of compressed gases, including MagneGas, are adhered to
across the entire industry. The Turkish metal cutting fuels market
is very large, estimated at over $200 million in annual consumption
by tens of thousands of laborers. Due to the sheer scale of this
industry, without the implementation of globally recognized safety
practices, thousands of Turkish laborers are impacted by fires and
explosions each year.
“With our recent meetings in Anakara from
November 8th to the 12th, we completed a series of legal
requirements to meet the expanded scope of operations at the
request of the Turkish authorities,” commented Scott Mahoney, CEO
of Taronis. “We are expected to complete the formal incorporation
process over the next week. With that complete, we anticipate that
we will be given final approval, and can commence with operations
under Taronis Turkey, including the invoice and payment of the
initial five unit $18.75 million order under the existing
contract.”
“We estimate that in order to meet the metal
cutting fuel demands of the Republic of Turkey, approximately 100
300KW Venturi® plasma arc gasification units will need to be
deployed. We have already seen our partner’s new 100,000 square
foot facility outside of Polatki, which is a town just outside of
Ankara. This facility can readily house 25-30 gasification units,
with adequate space to handle the ancillary bottling, cylinder
testing and other operations required to support the region’s metal
cutting fuel demands, with a priority on initially servicing the
Istanbul-Ankara industrial corridor first. We are in the process of
identifying additional facilities to accommodate another 70 units
over the next two years.”
“The Republic of Turkey is the 19th largest
economy in the world. It is growing, and heavily industrialized,
with a clear need for superior metal cutting fuel products. We are
very pleased that the government there has recognized the
environmental, safety and economic benefits of implementing
MagneGas as a vastly superior metal cutting fuel solution. We are
honored to have this partnership and take the next steps with MC
Consulting to make this happen,” concluded Mr. Mahoney.
About Taronis Technologies,
Inc.
Taronis Technologies, Inc. (TRNX) owns a
patented plasma arc technology that enables two primary end use
applications for fuel generation and water decontamination.
The Company’s fuel technology enables a wide use
of hydrocarbon feedstocks to be readily converted to fossil fuel
substitutes. The Company is developing a wide range of end market
uses for these fuels, including replacement products for propane,
compressed natural gas and liquid natural gas. The Company
currently markets a proprietary metal cutting fuel that is highly
competitive with acetylene. The Company distributes its proprietary
metal cutting fuel through independent distributors in the US and
through its wholly owned distributors doing business as “MagneGas
Welding Supply”. The Company operates 22 locations across
California, Texas, Louisiana, and Florida.
The Company’s technology can also be implemented
for the decontamination of waste water, including sterilizing
water, eradicating all pathogens. The technology is being tested to
determine if it can completely eliminate pharmaceutical
contaminants such as antibiotics, hormones and other soluble drugs
suspended in contaminated water. Lastly, the technology process is
capable of reducing or eliminating other contaminants, such as
harmful metals, as well as nitrogen, phosphorus, and potassium
levels that trigger toxic algae blooms. The technology has
prospective commercial applications in the agricultural,
pharmaceutical, and municipal waste markets. For more information
on Taronis, please visit the Company's website at
http://www.TaronisTech.com.
Taronis also owns a controlling interest in
Water Pilot, LLC. The WATER PILOT® System immediately reduces water
consumption and provides you with live remote consumption
monitoring for long term leak protection and water asset
management. An integral, client based alarm and notification system
that reports to any mobile device. Water Pilot may be appropriate
for a wide range of businesses or properties with a water meter.
For more information, please visit our website at
www.gowaterpilot.com/
FORWARD-LOOKING STATEMENTS
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.
Investor Contacts: Michael KhorassaniIR@TaronisTech.com
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