Financing Consists of $0.10 Fixed Price Common Stock;
Company to Expand Board of Directors
PHOENIX, AZ, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced the closing of a $10.85 million private placement of its shares of common stock. The private placement was completed at a fixed price of $0.10 per share of common stock, with no warrants issued to investors. The Company intends to use the net proceeds from the private placement to repay the majority of an existing $7.5 million convertible note and to provide additional working capital for the Company. Kingswood Capital Markets, a division of Benchmark Investments, Inc., acted as the exclusive placement agent for the transaction.
The Company has agreed to expand its Board of Directors by at least one board seat. Tobias W. Welo, who formerly managed approximately $8 billion in assets, including the Morningstar Bronze rated Fidelity Select Industrials Fund and the four-star Fidelity Select Materials Fund, participated in the private placement and is expected to be appointed to the Board before the end of the year.
“I look forward to working closely with the leadership team at Taronis,” commented Mr. Welo. “As an independent director, I believe I can provide advice and insights around corporate governance, capital allocation, and strategic direction to the leadership team. In addition, I believe my twenty years of experience in the industrials and materials sectors will allow me to identify opportunities for Taronis to expand its product offering to a sophisticated corporate audience who should value the combination of productivity, safety, and clean technology that MagneGas provides to its customers.”
“We are pleased to have the opportunity to partner with this group of investors,” commented Scott Mahoney, CEO of Taronis Fuels. “The incremental capital has significantly de-levered our balance sheet and enhanced our working capital position. We believe we now have the financial flexibility to execute our growth and investment objectives over the next year.”
The common stock sold in this private placement has been offered only to certain institutional and accredited investors in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The common stock has not been registered under the Securities Act or any state or other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state securities laws. The Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission registering the resale of the shares of common stock sold in the private placement.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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 functional 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