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MagneGas Receives Final Progress Payment from Gasification System Sale to Gulf Coast Industrial Gas Company

Magnegas Corp. - (MM) (NASDAQ:MNGA)

Today : Thursday 12 January 2017

TAMPA, Florida, January 12, 2017 /PRNewswire/ --

MagneGas Corporation ("MagneGas" or the "Company") (MNGA) a leading clean technology company in the renewable resources and environmental solutions industries, announced today that it has received the final contracted progress payment and has successfully shipped the Plasma-Arc Gasification system that was previously announced as contracted ("Gasifier Agreement") for sale to Green Arc Supply, LLC of Louisiana ("Green Arc").

Pursuant to the terms of the Gasifier Purchase Agreement, the Company has received a total of $775,000 towards the construction of the system. The final payment of $191,500 was paid after the factory acceptance and the system has shipped to the buyer, Green Arc. The Gasifier Purchase Agreement also calls for royalty payments which amount to $0.02 per cubic foot produced by Green Arc.

Under the terms of the Gasifier Purchase Agreement, Green Arc will have exclusive distribution rights for certain regions of Louisiana and Texas with non-exclusive distribution rights in remaining regions of Louisiana and Texas and all of Arkansas, Mississippi and Oklahoma. Green Arc has the right to expand their exclusivity in those states with the purchase of additional systems. The Company believes that entering into future agreements with Green Arc for the distribution of its products will result in significant capital infusions through additional equipment sales and receipt of royalty payments.

Ermanno Santilli, CEO of MagneGas Corporation stated: "To continue our great start of 2017, we have officially shipped our very first equipment sale to a customer in the United States. This milestone is an indication of our ability to expand the industrial gas business organically through equipment sales and retail expansion. We are very confident that this sale will result in additional equipment sales to this customer and look forward to the revenue impact this relationship will have in 2017 and beyond."