MagneGas Announces Board Reconstitution
June 19 2018 - 8:00AM
Emphasis on Fully Independent Board of
Directors
MagneGas Corporation ("MagneGas" or the "Company")
(NASDAQ:MNGA), a leading clean technology company in the renewable
resources and environmental solutions industries, announced today a
series of comprehensive changes to the Company’s Board of
Directors. Luisa Ingardiola, Carla Santilli and Chris
Huntington all submitted their notices to resign from the Company.
Ms. Ingardiola submitted her formal resignation and left the Board
of Directors on June 12, 2018 and both Mr. Huntington and Ms.
Santilli have notified the Company of their resignation plans to
leave the Board at the end of June. These changes were made
in part to fully address shareholder concerns regarding the
independence of the Board of Directors. Luisa Ingardiola, who
was the Company’s Chief Financial Officer from 2007 to 2016, and
Carla Santilli, are direct family relations of the current Chief
Executive Officer, Ermanno Santilli. In addition to these two
resignations, Mr. Huntington resigned to pursue other professional
and personal endeavors.
“We are very grateful for the long-standing
commitment, advice and support Luisa, Carla and Chris brought to
MagneGas,” commented Ermanno Santilli, Chief Executive Officer of
MagneGas Corporation. “As the Company is undergoing a rapid
and pivotal transition, I would like to acknowledge all of our
Board members that have made invaluable contributions to our
turn-around process. We wish each of these individuals the
best in all their future endeavors.”
As part of these changes, the Company also made
an equity grant to eliminate all accrued cash compensation due to
non-management board members. This grant was made to further
improve the Company’s working capital position and to reduce
current liabilities. In addition, future Board compensation
is expected to be reduced by approximately 50%. The Company
has been conducting a comprehensive expense rationalization program
in the second quarter as three acquisition made during 2018 are
being fully integrated.
“We’re determined to identify high-expense areas
throughout our corporate structure and evaluate how we can continue
trimming and re-shifting capital assets to not only become a leaner
company but ensure that our highest growth drivers continue to fire
on all cylinders. We’ve made deliberate measures to operate as a
more efficient company that aim to satisfy shareholder concerns and
ultimately grow our customer acquisition rate,” added Scott
Mahoney, Chief Financial Officer of MagneGas.
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
distributors, ESSI, Green Arc Supply, Trico Welding Supply and
Complete Welding of San Diego. ESSI has 3 locations in Florida,
Green Arc 2 locations in Texas and one location in Louisiana, Trico
has two locations in northern California, and Complete Welding has
one location in southern California. 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:Tirth PatelEdison AdvisorsT:
646-653-7035tpatel@edisongroup.com
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