TAMPA, Florida, July 20, 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 met a benchmark in its agreement (the "Gasifier Agreement") with Green Arc Supply, LLC ("Green Arc") to manufacture and sell a $775,000 100kw Plasma-Arc Gasification system (the "System") to Green Arc.
Pursuant to the terms of the Gasifier Agreement, the Company originally received payments totaling $392,500 at the signing of the Gasifier Agreement in November of 2015, and was due to receive $191,250 upon 75% construction completion of the System. The Company met this 75% benchmark in early June 2016, ahead of schedule. The balance of the $775,000 is due and payable upon completion of construction of the System. Per the terms of the Gasifier Agreement, payment will be received after training and factory acceptance. After payment, the Company will ship the unit to Green Arc. Payment and shipment are expected to occur in the third quarter of 2016. Revenue will be recognized at time of shipment.
The Company previously announced that it had entered into the Gasifier Agreement via a press release dated November 13, 2015 (see: http://finance.yahoo.com/news/magnegas-receives-382-500-signs-140000319.html).
As stated in the prior press release, under the terms of the Gasifier Agreement, the Company agreed to manufacture and sell to Green Arc, a 100kw Plasma-Arc Gasification System to allow Green Arc to distribute MagneGas2® fuel for the metal cutting market as a replacement to acetylene. Green Arc received exclusive distribution rights 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. Green Arc has informed the Company that they may purchase several additional systems.
Ermanno Santilli, CEO of MagneGas Corporation stated: "We are continuing to execute on our plan to expand fuel sales nationally with this, the first equipment sale in Company history in the United States. 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 execute on a difficult production system. I am proud of how our team performed doing what we said we would and ahead of schedule."
About MagneGas Corporation
MagneGas® Corporation (MNGA). The Company owns a patented process that converts various renewable and waste liquids into hydrogen based fuels. These fuels can be used as a replacement to natural gas or for metal cutting. The Company's testing has shown the fuels are faster, cleaner and more productive than other alternatives on the market. They are also cost effective and safe to use with little changeover costs. The Company currently sells MagneGas® into the metal working market as a replacement to acetylene.
The MagneGas fuel production systems can be set-up locally using various types of feedstock. The Company believes this flexibility can give them an advantage as fuels can be manufactured on site from raw materials found locally and eliminates the time and expense of shipping to the specific end user location. The Company is planning to sell the equipment or establish joint ventures with third parties to construct these supply facilities.
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.
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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