TAMPA, Florida, September 22, 2016
TAMPA, Florida, September 22, 2016 /PRNewswire/ --
MagneGas Corporation ("MagneGas" or the "Company") (MNGA) a leading technology company that counts among its inventions a patented process that converts renewable and waste liquids into MagneGas2® fuel, announced today that it has successfully completed construction of the Plasma-Arc Gasification system (the "System") that was previously announced as contracted for sale (the "Gasifier Agreement") to Green Arc Supply, LLC of Louisiana ("Green Arc").
Pursuant to the terms of the Gasifier Agreement, the Company has received a total of $583,750 towards the construction of the system. The final payment of $191,500 is due upon factory acceptance, which is expected in the next 30 days. A Distribution and License Agreement with Green Arc (the "Distribution Agreement") signed at the same time as the Gasifier Agreement calls for Green Arc to pay MagneGas royalty payments that equate to approximately 6% of gross sales of MagneGas2® fuel and other products by Green Arc.
Under the terms of the Distribution Agreement, once the final payment is made, Green Arc will have exclusive distribution rights to MagneGas2® for certain regions of Louisiana and Texas with non-exclusive distribution rights in remaining regions of Louisiana and Texas and all of Arkansas, Mississippi and Oklahoma. Green Arc has the right to expand their exclusivity in those states with the purchase of additional systems. The Company believes the Distribution Agreement may result in further significant capital infusions for the Company through royalty payments and further equipment sales.
Ermanno Santilli, CEO of MagneGas Corporation stated: "Completing construction of the System is the single most important event of this year as it signifies a new era in the Company's operating model. Reaching this milestone shows that the Company is not only able to perform at a high productivity level but that it has the ability to be an extremely capable manufacturer. I look forward to expanding our relationship with Green Arc as we seek to grow MagneGas2® sales throughout the Gulf Coast region."
About MagneGas Corporation
MagneGas® Corporation (MNGA) owns a patented process that converts various renewables and liquid wastes into MagneGas fuels. These fuels can be used as an alternative to natural gas or for metal cutting. The Company's testing has shown that its metal cutting fuel "MagneGas2®" is faster, cleaner and more productive than other alternatives on the market. It is also cost effective and safe to use with little changeover costs. The Company currently sells MagneGas2® into the metal working market as a replacement to acetylene.
The Company also sells equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications. For more information on MagneGas2®, please visit the Company's website at http://www.MagneGas.com.
The Company distributes MagneGas2® through Independent Distributors in the U.S and through its wholly owned distributor, ESSI (Equipment Sales and Services, Inc.). ESSI has four locations in Florida and distributes MagneGas2®, industrial gases and welding supplies. For more information on ESSI, please visit the company's website at http://www.weldingsupplytampa.com
To be added to the MagneGas investor email list, please email firstname.lastname@example.org with MNGA in the subject line.
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. The Company is currently using virgin vegetable oil to produce fuel while it configures its systems to properly process waste within local regulatory requirements.
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.
KCSA Strategic Communications
SOURCE MagneGas Corporation