Significantly Enhances Liquidity, Balance Sheet and Growth Capacity
PHOENIX, AZ, Nov. 18, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced the closing of a $10.4 million private placement of its shares of common stock with new and existing institutional and accredited investors. The private placement was completed at a fixed price of $0.10 per share of common stock, with no warrants issued to investors. The Company intends to use the net proceeds from this private placement to repay all existing long-term debt, deleverage the balance sheet, and to provide additional working capital for the Company. Kingswood Capital Markets, a division of Benchmark Investments, Inc., acted as the exclusive placement agent for the transaction.
The transaction was led and funded primarily by the same investor group that recently invested $10.85 million in the Company at a fixed share price of $0.10. This group primarily consists of former portfolio managers from several of the largest mutual fund families in the United States. These former fund managers include multiple small cap equity fund managers, an industrials analyst, and a chemicals analyst.
“This transaction significantly improves the immediate financial flexibility for the Company and positions our team for sustained long-term growth in the coming quarters,” commented Scott Mahoney, CEO of Taronis Fuels. “Our near-term domestic growth objectives are capital intensive, and our newly improved financial flexibility provides Taronis with a strengthened balance sheet and a strong working capital position as we head into 2021 and our projected acceleration of our organic growth strategy.”
“With this capital infusion, we have completed the process of transforming our balance sheet and preparing the Company for a strong start to 2021. We have eliminated essentially all of our amortizing debt, leaving us with minimal monthly debt service obligations. With this increased financial flexibility, we can better prioritize strong working capital and vendor management that further supports our long-term growth objectives,” concluded Mr. Mahoney.
About Taronis Fuels, Inc.
Taronis Fuels, Inc. is a global producer of renewable and socially responsible fuel products. Our goal is to deliver environmentally sustainable, technology driven alternatives to traditional fossil fuel and carbon-based economy products. We believe our products offer a vastly cleaner solution to legacy acetylene and propane alternatives.
Taronis is also dedicated to providing fundamentally safer solutions to meet the industrial, commercial and residential needs of tomorrow’s global economy. Our products have been rigorously tested and independently validated by global gas authorities as vastly safer than acetylene, the most dangerous industrial gas in use today.
Lastly, we strive to deliver products that offer significant function superiority at a reduced cost to the end consumer. Through these efforts, we support 9 of the 17 United Nations Sustainable Development Goals. For more information, please visit our website at www.taronisfuels.com/
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.