Taronis Fuels Ships First Gasification Unit to Ankara
$5 Million in Revenue Recognized in April
PHOENIX, AZ, April 21, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTC: TRNF), a global producer of renewable and socially responsible fuel products, today provided an update on the status of a key contract with a client based in Turkey. On April 21, 2020, the Company successfully shipped a 50KW mobile Venturi plasma arc gasification unit to fulfill an existing purchase order. The unit was previously announced as a $5 million sale to a reseller and marketing partner in the industrial sales and marketing space based in Turkey with its primary offices in Ankara, and regional offices in Dusseldorf, Germany.
The unit is currently scheduled to arrive in Turkey in May. The unit will be shipped in two phases, with the first shipping via Miami, Florida on April 21, 2020. This shipment is scheduled to arrive in Gemilk, Turkey on May 27, 2020. The second shipment is traveling via Savannah, Georgia, departing on May 1, 2020, and is due in Gemilk on May 29, 2020. The shipments will then be transported over land to Ankara for delivery to the final destination on June 3, 2020.
Once delivered, Taronis plans to immediately send an engineering and technical team to commission the unit in Ankara. Once fully operational, an official delegation from the Turkish Ministry of Trade and Ministry of Energy and Natural Resources will attend a ribbon cutting ceremony that will include an official demonstration of the gasification technology in operation, as well as a demonstration of the end product, MagneGas, the Company’s patented, renewable, hydrogen-based metal cutting fuel.
The delivery of the unit represents a key financial milestone for Taronis Fuels. First, this shipment enables the recognition of $5 million in high margin revenues, which are expected to be recognized in full during the second quarter of 2020. Next, this is the final requirement set forth by the Turkish Ministry of Energy and Natural Resources for the payment of four $4.69 million cash installments for five new 300KW Venturi plasma arc gasification units. The Ministry of Energy and Natural Resources is expected to be a key partner in the financing of this initial five unit purchase, as well as additional purchases of up to 95 more units over the next two years.
Lastly, the commissioning of the 50KW unit will enable the reseller to begin marketing the technology to government delegates from several neighboring markets with deep historical commercial ties to Turkey. The reseller and Taronis executed a 24 month joint marketing agreement in December 2019 for up to 50 additional units to be sold at $5 million each within the defined marketing territory. Multiple government and industry leaders from these target markets have committed to attend the ribbon cutting ceremony and evaluate the technology for immediate investment.
“This was a significant accomplishment for our engineering and technical team,” commented Scott Mahoney, CEO of Taronis. “This order was placed in January, just as the coronavirus pandemic began to impact the global community. Our team overcame incredible obstacles and disruptions within our global supply chain, including a lockdown in California and Florida that hindered our technical team on multiple fronts. Ultimately, our team prevailed, producing a top quality end product. The final successful step in this process was identifying a reliable shipping solution that could deliver the unit to its final destination in Ankara, which was no small feat given the number of shipping cancellations and disruptions to global trade and logistics today.”
“We are very pleased to reach this critical crossroad in fulfilling our obligations and responsibilities to date with our partners and the Ministry of Energy and Natural Resources in Turkey. This milestone now triggers a series of positive and scaling financial developments for the Company. To prepare for the expected growth, we are in the final stage of launching new manufacturing facilities in Peoria, Arizona, where we plan to be able to produce upwards of 100 new gasification units annually for the foreseeable future.”
“We do not view the shipment of this 50KW mobile unit as an end goal, but rather the beginning of an entirely new and exciting chapter in the growth story of Taronis Fuels as a global player in the industrial fuels industry of the 21st century,” concluded Mr. Mahoney.
To see pictures of the 50KW mobile unit and for other updates on Taronis Fuels, and follow us on , , , and .
About Taronis Fuels, Inc.
Taronis Fuels, Inc. is a global producer of renewable and socially responsible fuel products. Our goal is to deliver environmentally sustainable, technology driven alternatives to traditional fossil fuel and carbon-based economy products. We believe our products offer a vastly cleaner solution to legacy acetylene and propane alternatives.
Taronis is also dedicated to providing fundamentally safer solutions to meet the industrial, commercial and residential needs of tomorrow’s global economy. Our products have been rigorously tested and independently validated by global gas authorities as vastly safer than acetylene, the most dangerous industrial gas in use today.
Lastly, we strive to deliver products that offer significant function superiority at a reduced cost to the end consumer. Through these efforts, we support 9 of the 17 United Nations Sustainable Development Goals. For more information, please visit our website at
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 .
Investor Contacts:
Michael Khorassani
