MagneGas Completes Acquisition of Louisiana Welding Supply Company
October 29 2018 - 8:00AM
Adds $1 Million in Annualized
Sales
MagneGas Applied Technology Solutions, Inc. ("MagneGas" or
the "Company") (NASDAQ: MNGA), a leading clean technology
company in the renewable resources and environmental solutions
industries, announced today the completion of an acquisition of an
independent industrial gas and welding supply distributor based in
Shreveport, Louisiana. This transaction, priced at $1.5
million, paid in cash at closing, expands the Company’s geographic
footprint in the northern Louisiana market along a significant
industrial corridor, with strong exposure to the oil and gas
production and refining markets. This acquisition will also
include the Company’s first expansion into the medical gas
business.
“This acquisition gives us meaningful economies
of scale in a very attractive market,” commented Ermanno Santilli,
Chief Executive Officer of MagneGas. “Shreveport is an
extremely strong market for industrial gases, particularly metal
cutting fuels, that support the oil and gas industry. We are
excited to combine the scale of our Green Arc location with our
newly added team and begin driving improved profitability in a
growing market.”
“This acquisition is expected to increase our
monthly sales by about $80,000,” commented Scott Mahoney, Chief
Financial Officer of MagneGas. “We are now expecting to
consistently generate close to $1.1 million per month in
sales. We also expect this acquisition to play a key role in
improving the profitability of our Louisiana operations as we
consolidate our operations and realize meaningful synergies.”
About MagneGas Applied Technology
Solutions, Inc.
MagneGas Applied Technology Solutions, Inc.
(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, Paris Oxygen, Latex Welding
Supplies, Trico Welding Supply and Complete Welding of San Diego.
ESSI has 3 locations in Florida, Green Arc and Paris Oxygen have 3
locations in Texas, Green Arc and Latex have two locations in
Louisiana, Trico has two locations in northern California, and
Complete Welding has one location in southern California.
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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