TAMPA, Florida, May 24, 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 it has transitioned to a new renewable
feedstock that results in approximately a 60% increase in fuel
output per minute while yielding approximately a 49% reduction in
fuel production cost. The Company has a patent pending for the
usage of this new feedstock in its gasification systems, which it
expects will be granted.
Over the last year, the Company has conducted extensive testing
of various feedstocks to improve the production of MagneGas2® and
reduce production costs. After significant research and
development, the MagneGas engineering team has identified a much
more efficient feedstock that helps reduces the overall production
costs for MagneGas2® by approximately 49%. Additionally, through
the elimination of redundant processes that are not required for
use of the new feedstock, gas output per minute has increased by
approximately 60%. The Company strongly believes that the
combination of these two improvements will result in an even more
competitive product with greater margins that will be the catalyst
for additional market penetration and increased gas sales.
The new renewable feedstock significantly improves the operation
of the Company's units, which translates to reduced operating
costs. As a result, the Company believes MagneGas's gasification
equipment will be an even more attractive an investment opportunity
for distributor and gas producers. Additionally, the improvements
in production costs and increases in output should increase the
market penetration of MagneGas2® due to increased supply and also
facilitate sales of units to the large market of distributors
seeking a viable replacement to acetylene. The Company plans to
share the news of its improvements to its domestic and
international contacts, several of which are in active discussions
with MagneGas about purchasing gasification systems to produce
MagneGas2® in their local markets.
"Our R&D team has been working diligently to develop a less
expensive, more efficient way to produce MagneGas2® which has
already been extensively market tested with our sales team.
We are excited to announce that we have successfully
introduced a new feedstock that produces MagneGas2® more
efficiently at a reduced cost. We believe that this is significant
for our Company because it makes the sale of our gasification
equipment more attractive to potential buyers both domestically and
abroad and allows for increased market penetration of MagneGas2®.
In addition, the lower fuel cost has the potential to impact
our gross margins by reducing our direct cost. I believe this is
one of the most significant events that the Company has had this
year and that we can expect further increases in production rates
and cost reductions in the coming months," stated Ermanno Santilli, CEO of MagneGas.
"For many years, research, development and production related
expenses for MagneGas2® has been one of the most significant
components of recurring operating expenses for MagneGas," stated
Scott Mahoney, CFO of MagneGas. "The
Company has taken a series of steps in the past two quarters to
address expense control and overall profitability outlook. We began
by addressing vendors, then non-essential staffing, and now we are
pleased to announce meaningful reductions to our production
expenses going forward."
"This is a powerful next step in our ability to increase market
share in the industrial gases and welding supply space. This is
also a critical metric for marketing and selling our equipment to
established regional industrial gas distributors across the U.S.,"
continued Mr. Mahoney. "We have been very successful penetrating
the regional distributor market over the past 3 years. We
have existing distributor relationships in 18 states across the
U.S. and we are in active discussions with a number of our partners
about licensing the rights to produce MagneGas2® in their
particular regions. With these new demonstrated operating
efficiencies, we can better drive many of these relationships
towards the purchase of MagneGas2® equipment sales in the near
term."
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.
FORWARD-LOOKING STATEMENTS
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.
Investor Contacts:
Crescendo Communications
626 RXR Plaza
Uniondale, NY 11556
T: +1-844-589-8760
mnga@crescendo-ir.com
SOURCE MagneGas Corporation