Can you feel the ground moving beneath your feet? Shares of MagneGas Corporation (NASDAQ:MNGA) skyrocket nearly 55% today after the alternative fuel company announced that its European joint venture with Infinite Fuels, GmbH has been awarded a EUR6.0 million ($7.2 million USD) grant from the Executive Agency for Small and Medium-sized Enterprises (EASME), a department within the European Commission. The grant application was made by Infinite Fuels through an Eco-Innovation funding initiative within the Energy, Environment, and Resources Department of EASME. The grant approval process is expected to be finalized and funds made available in mid-2018.
"This grant is a major opportunity for MagneGas, together with our joint venture partners, to take a leading role in providing clean technology solutions within the European Union at scale," commented Ermanno Santilli, CEO of MagneGas. "We have spent almost two years working to help make this possible. We feel very fortunate that with the help of our advisors at Ernst & Young in Europe, our joint venture partnership was able to successfully navigate the process of passing the evaluation phase of the grant approval processes with EASME. This grant opportunity is an excellent example of the European Union's commitment to funding emerging clean technology projects. This funding is expected to play a key role in our ability to attract additional capital in Europe in the immediate term, which is expected to accelerate and expand the scope of our operational launch in Germany in 2018."
In reaction, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on MagneGas shares, with a $6.00 price target, which implies a potential upside of nearly 290%.