TAMPA, Fla., April 16, 2015 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA) is a leading technology company. Included in the Company's IP portfolio is a patented process that converts liquid waste into MagneGas® fuel. Today the Company announced that its subsidiary, Equipment Sales and Services Inc. (ESSI) has signed a contract to open a sales and service outlet into North Central Florida.
A 50/50 joint venture was established with Suwannee Ironworks ("Suwannee"), an existing client. This allows for the distribution of MagneGas® in areas not currently serviced by the Company, as well as opening up additional potential revenue opportunities from gas and welding supplies. The expanded location also allows MagneGas to capitalize on authorized distributor contracts with Lincoln and Miller, which would not be possible without an already an existing distributorship. The Company expects that this new joint venture will launch MagneGas® into North Florida, from Tallahassee to Jacksonville, as well as from Southern Georgia to Gainesville, FL. MagneGas's subsidiary, ESSI, will provide the inventory, proprietary distributorships, accounting and billing management while Suwanee will provide the commercial location, shipping, transportation, and personnel to operate the new location for the joint venture. The Company believes this will allow them to service existing MagneGas clients with all their industrial needs which was previously difficult due to distance..
"ESSI was purchased as a platform to not only sell MagneGas®, but to service industrial welding needs as well. Our new location will allow us to service existing MagneGas clients which was previously impracticable due to distance," stated Jack Armstrong, Executive Vice President Operations for MagneGas and ESSI. "We purchased ESSI to expand MagneGas sales and growth. Many clients prefer a 'one stop shop' and having a local physical location should attract additional clients to MagneGas® fuel. The official opening is scheduled for July 1 but our sales and marketing efforts have already commenced."
Ernie Caparelli, one of the owners of Suwanee Ironworks, commented, "Through our many business relationships in the area, we anticipated being able to provide a significant impact on MagneGas's sales growth and service in this new market. Local knowledge is critical to success in North Florida. Suwannee Ironworks has been in business for over 30 years and our long standing contacts will allow us to gain immediate traction in the market."
Brian Linton, owner of The Recycling Center, Inc. stated, "The Recycling Center has used MagneGas® for our scrap yards since 2012 and we love the gas. We have multiple locations and locally we feel comfortable allowing ESSI to supply us with MagneGas®. We are always looking to expand and would love for ESSI to transition into other gases, safety products and hard goods."
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About MagneGas Corporation
Founded in 2007, Tampa-based MagneGas Corporation (NASDAQ: MNGA) is a technology Company that counts among its inventions, a patented process that converts liquid waste into hydrogen based fuels. The Company currently sells MagneGas® into the metal working market as a replacement to acetylene. It 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 www.MagneGas.com.
About Suwannee Ironworks
Suwannee Ironworks and Fence was founded in 1990. With over 40 years of experience. The Company's goal is to provide clients with the highest quality in fabrication and fencing needs. Their top priority is quality work and personal service no matter how big or small the project may be. Suwannee Iron Works & Fence fabricates and installs structural steel framing and miscellaneous components involved in building large and small commercial and industrial projects such as Office Buildings, Department Stores and Warehouses throughout the United States. Their designers, engineers, and fabricators regularly work with carbon steel, stainless steel, aluminum, titanium, and magnesium. Their sister company, Suwannee Fence also supplies installs chain link, wroth iron, PVC & wood fencing custom built to the project. The Company's wide-ranging steel fabricating qualifications have made them a custom steel fabricator of choice for manufacturers throughout the United States. They have built a reputation on quality workmanship and integrity in all aspects of business. They are proud of their longevity and expect to maintain their status as a leader in the custom steel fabricating industry. The Company supplies and installs products from Maine to Hawaii and from Puerto Rico to Alaska.
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.
SOURCE MagneGas Corporation