LONDON, UK / ACCESSWIRE / October 5, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for MagneGas Corp. (NASDAQ: MNGA), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=MNGA. The Company announced on October 03, 2017, that it has signed a Letter of Intent (LOI) to acquire a Louisiana-based independent industrial gas and welding supply business, which is expected to generate over $1.6 million in annualized revenues for 2017. For immediate access to our complimentary reports, including today’s coverage, register for free now at:
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The consideration for the transaction is $2 million in cash, along with an additional $1 million in MagneGas’ common stock.
The transaction is likely to close by the end of 2017.
This acquisition would represent a 47% increase in MagneGas’ revenues compared to the Company’s revenues in 2016.
Acquisition Gives MagneGas Immediate Client Penetration in Louisiana and East Texas
Ermanno Santilli, Chief Executive Officer (CEO) of MagneGas, stated that the Company continues to execute on its plan to acquire strong, well-run distributors in new markets where it can fully leverage its key competitive advantages. This acquisition gives MagneGas immediate client penetration in Louisiana and East Texas, which are some of the strongest markets for industrial gas sales in the US today.
Transaction to Impact Top-Line Growth & Bottom-Line Profitability in 2018 and Beyond
Scott Mahoney, Chief Financial Officer (CFO) of MagneGas, stated that this acquisition marks the next step in the Company’s acquisition strategy. The Company has a clearly defined plan to expand its footprint in each of the major markets for industrial gas sales across the US, including Texas and California, and it took its first step with the announcement of an LOI to acquire an industrial gas distributor in the San Diego market.
Mahoney believes that making modest investments in high growth markets, combined with the competitive advantage of MagneGas2® as a powerful lead-in product will enable MagneGas to continue to grow well above the industry norms. The acquisition is seen as a highly accretive transaction that will impact top-line growth and bottom-line profitability in 2018 and beyond.
Company Executed LOI to Acquire San Diego Industrial Gas Distributor in September 2017
As per the news release on September 27, 2017, MagneGas entered into another LOI to acquire a San Diego-based independent industrial gas and welding supply business expected to generate over $1.0 million in annualized revenues for 2017. The upfront cash consideration for the transaction was $750,000 and is expected to close by October 31, 2017.
About MagneGas Corp.
Founded in 2005, MagneGas is a technology Company that counts among its inventions, a patented process that converts liquid waste into hydrogen-based fuels. The Company offers MagneGas® into the metalworking market as a faster, safer, and hotter replacement to acetylene, in the United States and internationally. MagneGas is headquartered in Tarpon Springs, Florida.
Last Close Stock Review
On Wednesday, October 04, 2017, MagneGas’ stock closed the trading session at $0.58, marginally up 0.69%. A total volume of 387.20 thousand shares were exchanged during the session. In the last month, shares of the Company have advanced 7.04%. The stock currently has a market cap of $7.05 million.
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