TAMPA, Florida, May 31, 2017 /PRNewswire/ --
MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), a leading clean technology company in the renewable resources and environmental solutions industries, announced today that the company has expanded its product offerings to include a wide range of industrial tools to better meet growing client demand.
Since 2010, MagneGas has been successful in penetrating the wholesale industrial gas industry through the introduction of the MagneGas clean technology product for the legacy acetylene market. MagneGas's acquired its wholly-owned subsidiary ESSI in November 2014, which is now part of the MagneGas Welding Supply division. This critical acquisition brought a deep customer base that quickly validated the MagneGas2® product as a strong competitive alternative to acetylene for metal cutting and fabrication.
ESSI also brought an immediate diversification of revenue, providing revenue growth opportunities in non-proprietary industrial gases and traditional welding supplies. MagneGas has since used the MagneGas2® product as a key wedge product to establish relationships with leading industrial, manufacturing, construction, demolition and fabrication companies across the southeastern US markets.
Many of MagneGas's largest clients have inquired about the company's ability to deliver a wider array of products in the industrial tool category. The company recognized this as a significant low-risk growth opportunity that is highly complementary to the company's current product offering. As a result, the company chose to add a highly experienced sales executive from a leading competitor this week. This executive brings a deep client relationship base with some of the largest companies in the construction, manufacturing, demolition, refurbishment, utilities and heavy industries across the southeastern US. Furthermore, this executive is expected to quickly transition approximately $1,000,000 in existing annual client revenues to MagneGas over the coming months.
"We are very pleased to expand our sales team beyond our current product knowledge base," commented Ermanno Santilli, CEO of MagneGas. "We are excited to add these clients to our existing business model, and equally importantly, we look forward to bringing these new product offerings to our existing customer base. We see strong cross-sales synergies across the entire client base, as many of our current clients have a strong demand for our new products. We also see the ability to leverage our newly acquired customer relationships to springboard organically into new markets across the southeast and Sun Belt states. We are hopeful this will translate into accelerated revenue growth in the remainder of 2017 and beyond."
"MagneGas is increasingly focused on driving immediate revenue growth by adding experienced sales executives with deep client relationships. We executed this same model in Sarasota, FL, and Huntington, IN. This is a process we look to replicate many times going forward," stated Scott Mahoney, CFO of MagneGas. "This approach provides an accelerated ability to leverage our sales team and our existing customer base to drive more profitable, cash-flow efficient growth. We are aggressively improving our core sales platform to maximize organic growth, and prepare for our desired expansion via acquisition in the coming quarters. We believe this approach will maximize the near term value of our disruptive technology to generate lasting shareholder value."
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 MagneGas®, 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 subsidiary MagneGas Welding Supply, LLC and its distributor, Equipment Sales and Services, Inc. ("ESSI"). 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.
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.
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SOURCE MagneGas Corporation