MagneGas Corporation (NASDAQ: MNGA)

 

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MagneGas Corporation (NASDAQ: MNGA)

   
Website: www.MagneGas.com

MagneGas Investor Presentation
September 2017 Gas World Article
    

MagneGas Corporation (NASDAQ: MNGA) is the producer of MagneGas, a natural gas alternative and metal working fuel made from liquid waste such as sewage, sludge, manure and certain industrial and oil based liquid wastes. The Company's patented Plasma Arc Flow process gasifies liquid waste, creating a clean burning fuel that is essentially interchangeable with natural gas, but with lower green house gas emissions. MagneGas can be used for metal cutting, cooking, heating or powering bi fuel automobiles.

The Company is an alternative energy company that creates a system that produces hydrogen based fuel through the gasification of liquid and liquid waste. Management has developed a process which gasifies various types of liquids and liquid wastes through a proprietary plasma arc system. A byproduct of this process is an alternative to natural gas currently sold in the metalworking market as a cutting fuel. The Company produces gas bottled in cylinders for the purpose of distribution to the metalworking market as an alternative to acetylene. Additionally, the Company markets for sale its proprietary plasma arc technology for the processing of liquid waste (the “Plasma Arc Flow Units” or “Plasma Arc Flow System”), is developing ancillary uses of its MagneGas2 fuel for co-combustion, and has acquired a gas distribution company that sells various types of industrial fuels and supplies. Through the course of its business development, the Company has established a retail and wholesale platform to sell its fuel for use in the metalworking and manufacturing industries. The Company has also established a network of brokers to sell its Plasma Arc Flow equipment internationally.

MagneGas also improves the performance of equipment and the productivity of employees by concentrating the heat at the precise point of the cut, this creates a higher quality cut. MagneGas is safer because there is limited flashback during cuts and has a lower toxicity than acetylene. Since MagneGas costs less than acetylene and uses less oxygen it is very cost competitive and saves users money.

MagneGas2

The latest innovation, MagneGas2, is made of a renewable source and has a higher temperature than propane, acetylene, and the original MagneGas. Like MagneGas, MagneGas2 also cuts faster and cleaner with little to no slag and uses less Oxygen. MagneGas can cut 2 inch steel at a rate of 18 inches per minute, 38% faster than Acetylene and 44% faster than Propane.

Sustainability

MagneGas Corporation's proprietary fuels are seen as environmentally friendly because they are "made from liquid waste such as sewage, sludge, manure and certain industrial and oil based liquid wastes".

This is a highly attractive opportunity for companies that use large amounts of welding fuel and wish to present themselves to investors and governments as environmentally-friendly corporations. Furthermore, there are indications that MagneGas and MagneGas 2 will become more popular as governments around the world increase restrictions on emissions.

Financial Position of MagneGas Corporation

Investors considering MagneGas should carefully assess the company's financial position. On March 31st, 2017, a $2,504,945 operating loss was recorded. This was slightly lower than the $2,568,251 operating loss recorded for the same period a year prior.

On May 19th, 2017, MagneGas Corporation underwent a 1-for-10 reverse stock split in order to meet the minimum listing requirement for the NASDAQ Global Market. This was successful and the company regained compliance with the listing requirements.

Positive Indications for Near-Term Growth

There have recently been numerous indications that MagneGas Corporation is gearing up to sell large amounts of its proprietary fuels. MagneGas Corporation has also been steadily creating new relationships with companies and institutions that require large amounts of fuel. Investors wishing to learn more about recent developments should check the company's press releases.

On January 24th, 2017, it was announced that MagneGas Corporation had expanded into the Indian market and had begun selling MagneGas 2 to an unnamed Fortune 100 top U.S. automaker. A week later, MagneGas Corporation announced that it was expanding sales of its proprietary fuels in Florida markets. This expansion was successful and the company announced that "revenues for its newest Florida location for industrial gas and welding supply have grown 265%" from December 2016 to April 2017.

More positive news arrived on February 14th and April 10th as MagneGas Corporation announced that it was chosen to supply fuel for the Long Island Railroad Brooklyn accident repairs and the and the construction of the Orlando City Soccer Stadium. In April 2017, the MagneGas Corporation announced the formation of a wholly-owned subsidiary called MagneGas Welding Supply in order to facilitate the sale of MagneGas and MagneGas 2.

In sum, recent indications demonstrate that MagneGas Corporation may be close to beginning large-scale sales of its proprietary fuels. 

Other Markets

The Company also sells equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications. For more information on MagneGas, please visit the Company's website at http://www.MagneGas.com.

The Company distributes MagneGas2® through Independent Distributors in the U.S. and through its wholly-owned distributor, ESSI (Equipment Sales and Services, Inc). ESSI has four locations in Florida and distributes MagneGas2®, industrial gases and welding supplies. For more information on ESSI, please visit the company's website at http://www.weldingsupplytampa.com.

 


NASDAQ Symbol: MNGA

Current Price: $0.55

Shares Outstanding: 12.17 million

Market Cap: $6.7 million
52 Week Trading Range:

52-Week Low: $0.40
52-Week High: $8.70

Corporate Offices:
11885 44th Street N.
Clearwater, FL 33762

Website:
www.magnegas.com
Phone: (727) 934-3448
Email:  Scott.Wainwright@magnegas.com

Reporting Status

U.S. Reporting: SEC Reporting
Latest Report 6/30/2017 10-Q
CIK 0001353487
Fiscal Year End 12/31