Taronis Acquires Los Angeles-Based Industrial Gas Distributor
February 26 2019 - 10:00AM
Taronis Technologies, Inc. (“Taronis" or “the Company") (NASDAQ:
TRNX), a leading clean technology company in the renewable
resources and environmental conservation industry, today announced
that the Company has completed the acquisition of one of the
largest independently owned industrial gas distributors in Los
Angeles, CA. The acquired company generates approximately
$4.5 million in annual sales, and has five retail locations across
the Los Angeles metro market. The acquired company also sells
industrial gases and welding supply products into the Mexican
markets in Baja California and Sonora, through a relationship with
one of the largest independent industrial gas operators in the
region. The transaction was structured as an asset purchase,
with a cash purchase price of $2.5 million.
This transaction effectively completes the
initial phase and business objectives of the Company’s acquisition
program initiated in early 2017. These objectives were
originally as follows:
- Establish a top five independent industrial gas business in the
two largest industrial gas markets in the United States
- Generate sufficient customer interest to support new Taronis
production facilities in East Texas, Northern California and
Southern California
- Leverage our proprietary, patented technology to grow our
market position to at least $100 million in approximately five
years
- Establish a clear operational vision supporting the ability to
further grow each market to at least $100 million within
approximately ten years, and selectively expand the regional
footprint to support a combined $250 million US industrial gas
business
- Increase the Company’s revenue base to a level that creates a
clear and imminent path to cash flow positive operations
- Expand the Company’s access to capital, particularly the bank
debt markets, to effectively leverage our balance sheet and enhance
the potential return on equity for shareholders
- Leverage that platform of financial scale and stability to fund
international expansion, to fund further research and development
for renewable fuel products, and to launch a scalable water
decontamination business
“This acquisition is the final milestone in
first phase of our initial business plan set forth in early 2017,”
commented Scott Mahoney, Chief Executive Officer of Taronis
Technologies. “Two years ago, our Board established a series
of business objectives. This plan required making a series of
carefully selected acquisitions in California and Texas that would
enable our Company to become a top five independent competitor in
the most attractive markets in the US today for industrial
gases. With this transaction, we have completed that critical
goal.”
Mr. Mahoney continued, “After completing nine
acquisitions in the past thirteen months, we have increased our
revenue run rate by approximately 800%, and believe that we can now
reduce our acquisition rate. Our goal was to quickly reach a
scale that could sustainably fund our research and development
efforts, our corporate overhead, and create a largely self-funded
business model. We chose to take this path because we felt it
would be a much more cost effective and efficient method of
penetrating extremely competitive markets as compared to a much
slower, more costly path through organic expansion. And as a
result, we accomplished in a little over one year what could have
taken more than twenty years to do organically.”
Mr. Mahoney concluded, “We are now able to shift
much of our operational focus to the deployment of our metal
cutting fuel production capabilities across Texas and
California. Our goal is to convert all of our traditional
metal cutting fuel clients to our patented MagneGas metal cutting
fuel product. We produce the only renewable metal cutting
fuel in the world, and believe it is a vastly superior product. We
believe in our cleaner, safer, smarter solution, and we intend to
aggressively demonstrate these benefits to our clients and the
broader market in 2019 and beyond.”
About Taronis Technologies,
Inc. Taronis Technologies, Inc. (TRNX) owns a patented
plasma arc technology that enables two primary end use applications
for fuel generation and water decontamination.
The Company’s fuel technology enables a wide use
of hydrocarbon feedstocks to be readily converted to fossil fuel
substitutes. The Company is developing a wide range of end
market uses for these fuels, including replacement products for
propane, compressed natural gas and liquid natural gas. The
Company currently markets a proprietary metal cutting fuel that is
highly competitive with acetylene. The Company distributes its
proprietary metal cutting fuel through Independent Distributors in
the U.S and through its wholly owned distributors: ESSI, Green Arc
Supply, Paris Oxygen, Latex Welding Supplies, Tyler Welders Supply,
United Welding Supplies, Trico Welding Supply and Complete Welding
of San Diego. The Company operates 17 locations across California,
Texas, Louisiana, and Florida.
The Company’s technology can also be implemented
for the decontamination of waste water, including sterilizing
water, eradicating all pathogens. The technology is being
tested to determine if it can completely eliminate pharmaceutical
contaminants such as antibiotics, hormones and other soluble drugs
suspended in contaminated water. Lastly, the technology process is
capable of reducing or eliminating other contaminants, such as
harmful metals, as well as nitrogen, phosphorus, and potassium
levels that trigger toxic algae blooms. The technology has
prospective commercial applications in the agricultural,
pharmaceutical, and municipal waste markets. For more
information on Taronis, please visit the Company's website at
http://www.TaronisTech.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.
News ReleaseInvestor
Contacts:Andrew GibsonEdison Grouptaronis@edisongroup.com
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