Taronis Technologies, Inc. announced that it expects to receive $25.0002 million in funding
December 08, 2019
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Taronis Technologies, Inc. (NasdaqCM:TRNX) announced that it has entered into a securities purchase agreement with certain institutional investors for private placement of 29,412 series H convertible preferred shares at a price of $850 per share for gross proceeds of $25,000,200 on December 9, 2019. The preferred shares are convertible into 19,608,000 common shares at a fixed conversion price of $1.5 per share. The preferred shares will initially mature in 24months from the end of the calendar month following issuance. The maturity date of the preferred shares will be automatically extended in the event that the company, directly or through its current or former subsidiary, Taronis Fuels, Inc., receives non-refundable deposits of not less than $4,500,000 pursuant to the Turkish contract. The company will also issue 19,608,001 share purchase warrants exercisable at $1.5 per share. The company also has the right to redeem the series H convertible preferred stock, in cash in amount equal to 125% of the conversion amount. The preferred shares will amortize monthly over their term, payable in cash or stock at the company’s election, subject to certain conditions. The holders of the Preferred Shares do not have voting rights. The preferred shares are issued at a discount of $150 per share to the stated value of $1,000 per share. The company may increase the size of offering to 40,000 preferred shares. The transaction is expected to close on or about around January 31, 2019 and is subject to approval of the company’s shareholders at the company’s 2019 annual meeting. The securities issued are subject to lock-up agreement.
Taronis Technologies Inc., formerly MagneGas Applied Technology Solutions, Inc., is an alternative energy company. The Company creates and produces hydrogen-based alternative fuel through the gasification of carbon-rich liquids, including certain liquids and liquid wastes. The Company also markets, for sale or licensure, its plasma arc technology for the processing of liquid waste (the Plasma Arc Flow System). Its products include the fuel called MagneGas2 for the metal working industry, the equipment primarily known in the firefighting industry, known as MagneTote, and the machines that produce MagneGas2, known as Plasma Arc Flow refineries. In addition, the Company sells metal cutting fuels and ancillary products through its subsidiary, Equipment Sales and Service, Inc. a Florida corporation. It focuses on market segments, such as industrial gas sales, equipment sales for liquid waste processing and use of MagneGas2 for the co-combustion of hydro-carbon fuels to reduce emissions.