Domestic Business Continues Strong Rebound
PHOENIX, AZ , Dec. 22, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or the “Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today provided a summary update of operations. The Company currently has approximately $4.6 million in cash on hand, which is projected to support current Company operations through the end of the second quarter of 2021.
The Company has spent the past two months focused on deleveraging its balance sheet. After two successful equity private placements, the Company has retired $6.9 million of a $7.5 million convertible note, retired all short-term merchant cash advances, and $4.6 million of the $9.6 million in seller financing for the TGS acquisition. In addition, the Company has repaid the majority of short-term vendor payable balances, which has greatly improved the Company’s working capital position heading into a period of expected accelerated organic growth in the first quarter of 2021.
Domestic revenues for MagneGas Welding Supply, the Company’s industrial gas and welding supply network continue to track to internal forecasts and are in line with prior management expectations. The retail division has successfully responded to the negative impact of the COVID-19 pandemic, and has effectively utilized new client acquisitions to offset the temporary negative effects of the pandemic. Average monthly sales for the first two months of the fourth quarter were 7% higher when compared to the third quarter of 2020 and 27% higher than monthly sales for the second quarter of 2020. October retail sales were $2.2 million, which were the highest level of sales reported for the Company in 2020.
The Company’s wholesale gas division, TGS, is also tracking closely with prior year sales, and has been largely unaffected by the pandemic. Overall, domestic growth is expected to accelerate heading into 2021. MagneGas Welding Supply retail same-store sales are projected to increase at least 10% quarter over quarter in the first quarter. Wholesale gas sales are expected to increase closer to 20%, as the Company launches its first distribution hub in the northern California market in January.
International business expansion results, including the Company’s Amsterdam pilot MagneGas production site and pending unit sales in Turkey remain on track and unchanged. The Company intends to provide a comprehensive update on preliminary results of operations in the early first quarter of 2021.
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 www.taronisfuels.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:
Michael Khorassani
IR@Taronisfuels.com