A Tampa-based technology company has announced a $2.65 million Letter of Intent for the sale of its gasification system, sterilization system and MagneGas2 Fuel.
MagneGas Corporation (MNGA) a company that counts among its inventions a patented process that converts renewable and waste liquids into MagneGas2 fuel, a replacement for acetylene, announced this week that it has entered into its largest equipment sale to date with a Letter of Intent ("LOI") to manufacture and deliver certain equipment and supplies to a company based in Germany.
According to a press relase on the company's website, MagneGas will receive $2.65 million for its proprietary gasification and sterilization systems and will supply MagnesGas2 fuel and cylinders. The sale is a stepping stone for the company as it seeks to expand the availability of its technology and MagneGas2 fuel across the European continent in the global $5 billion metal cutting fuel market.
Under the terms of the LOI, MagneGas will manufacture and deliver
- A 300KW stationary gasification system
- A 100KW mobile sterilization system
- 250 cylinders full of MagneGas2
- 50 MagneGas regulators.
According to the realse, a $25,000 deposit has been received and progress payments of $2.625 million will be due upon signature of the definitive agreements, construction completion and delivery of systems with related supplies. The LOI calls for exclusive distribution rights in Germany, with an option to purchase rights to certain additional countries with system deployments.
"The entire MagneGas team is excited about this opportunity because it holds the potential to open up target markets that desperately need our technology and the fuel it can produce," Ermanno Santilli, CEO of MagneGas Corporation said. "This sale is the largest sale in the history of MagneGas and will provide us the opportunity to expand further into Europe. We believe this is one of the most significant events in the company's evolution and will help define our strategy for 2017 and beyond."
Until the parties enter into definitive agreements, MagneGas has agreed to keep the name of the German company and the exact details of the LOI confidential.The gasification system will be used to produce MagneGas2 fuel to sell into the German market with the potential of other markets coming online soon after. The sterilization system will be used for demonstrations and small service contracts with the goal of entering the agriculture and municipal wastewater treatment markets in Germany, according to the relase.