MagneGas Signs $2.7 Million Agreement with Clear Sky Energy S.A. de C.V. of Mexico Definitive Agreements Signed, Initial Deposit Received for the Sale of a MagneGas Gasification System for $2.7 Million
TAMPA, Fla., April 2, 2013 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), the developer of a technology that converts liquid waste into a hydrogen-based metal working fuel and natural gas alternative, announced today that it has signed definitive agreements with Clear Sky Energy S.A. de C.V. ("CSE") in which CSE will purchase a Plasma Arc Flow™ gasification system from the Company for an aggregate purchase price of $2.7 million plus 5% royalties. In addition, CSE will be an exclusive distributor for MagneGas products and services in Mexico.
"CSE is very pleased to represent the MagneGas technology in Mexico. The opportunities in front of us are numerous and broad in scope. We feel the MagneGas technology will have a significant impact in the industrial gas, sewage treatment and hazardous waste treatment markets. We are confident that the combination of CSE's access to markets coupled with the MagneGas technology will result in several significant opportunities to satisfy the growing demand for Liquid Waste to Energy solutions in Mexico," said Manuel Juan Marcos, CEO of CSE.
"We were amazed by the access to markets CSE has in Mexico. The recent demonstration to potential CSE customers was well managed and tremendously convincing," stated MagneGas CEO Ermanno Santilli. "MagneGas provided a mobile unit for testing in Mexico and the CSE team brought oil wastes from around the country. Together we performed a live demonstration of oil wastes being gasified by our recycler, MagneGas feeding a generator and electricity being produced on demand. The customer feedback was very positive."
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About MagneGas Corporation
Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is the producer of MagneGasa, a natural gas alternative and metal working fuel that can be made from certain industrial, municipal, agricultural and military liquid wastes following the receipt of appropriate governmental permits.
The Company's patented Plasma Arc Flowa process gasifies liquid waste, creating a clean burning hydrogen based fuel that is essentially interchangeable with natural gas. MagneGasa can be used for metal working, cooking, heating, powering bi fuel automobiles and more. For more information on MagneGas, please visit the Company's website at www.MagneGas.com.
CSE, formed in 2010, focuses on the development and distribution of sustainable, green energy technologies in Mexico. In particular Clear Sky Energy maintains a focus on helping the energy industry in Mexico dispose of traditionally challenging waste and waste material in ways that are significantly more environmentally conscious and friendly when compared to current methods. CSE and its principals have deep ties to the energy industry in Mexico. CSE will be a leader in assisting companies deal responsibly with newly adopted regulations aimed at better protecting citizens and the environment in Mexico and Latin America.
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 new ethylene glycol to produce fuel until proper permits to process used liquid waste have been obtained.
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.
SOURCE MagneGas Corporation