Taronis Technologies Inc (TRNX)

[Viewmont]

https://finance.yahoo.com/news/taronis-completes-3-5-million-133000253.html

PHOENIX, AZ, Nov. 15, 2019 (GLOBE NEWSWIRE) -- Taronis Technologies, Inc., (“Taronis” or “the Company”) (TRNX), a leading renewable fuel producer serving the global industrial gas markets, today announced that it has closed a $3.5 million convertible preferred equity financing. The transaction includes a $2.25 fixed conversion price. The investor is not permitted to convert any of the preferred equity for the first 30 days post-closing, and any unconverted balance under this facility shall mature twelve months from closing. Full terms and conditions of the financing are available under the 8-K dated November 15, 2019.

The Special Equities Group, a division of Bradley Woods & Co. LTD., acted as lead Placement Agent and The Benchmark Company acted as Co-Placement agent.

“The purpose of this transaction is to provide interim working capital for Taronis in advance of an anticipated initial purchase order under the existing $165 million contract in Turkey,” commented Scott Mahoney, CEO of Taronis. “Based on our most recent meetings in Ankara, we believe we have satisfied all conditions required for our counterparty to initiate an initial purchase order.”

“The $165 million contract calls for a minimum of five 300KW Venturi plasma arc units. The upfront payment on each unit is $3.75 million, for a total of $18.75 million that will be due within 2 days of formal government approval in Turkey for the manufacturing, sale and distribution of MagneGas. Based on what we know today, we believe we will formally trigger that payment before the end of 2019.”

“In the event we receive this payment, we anticipate making the voluntary election to prepay the convertible preferred equity financing in full, thus minimizing the potential dilution to our existing shareholders. We believe this form of financing provides the maximum flexibility in the short term while providing the necessary capital to make the preparations for the commencement of the Turkish contract,” concluded Mr. Mahoney.