MagneGas Corporation (NASDAQ: MNGA) is having an overwhelmingly strong day in the market today, and for good reason. In a press release issued early this morning, the company announced that it has been awarded a grant. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the grant, what we’re seeing from the stock, and what we’ll be watching for with regard to MNGA ahead.
MNGA Gains On Grant News
As mentioned above, MagneGas is having an overwhelmingly strong day today after announcing that it has been awarded a grant. In a press release issued this morning, the company announced that its European joint venture with Infinite Fuels, GmbH has been awarded a grant from the Executive Agency for Small and Medium-sized Enterprises (EASME). EASME is a department within the European Commission and the total value of the grant came to $7.2 million USD. The grant review process is expected to be finalized and funds made available by mid-2018. In a statement, Ermanno Santilli, CEO at MNGA, had the following to offer:
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… We have spent almost two years working to 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 process with EASME. This grant opportunity is an excellent example of the European Union’s commitment to funding emerging clean technology products. 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.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news surrounding MagneGas proved to be overwhelmingly positive. Afterall, the new funding will further support the company’s operations in Europe, also providing the ability to learn and innovate, using what it comes up with around the world. So, it’s no surprise to see that the stock is making a run for the top. Currently (9:47), MNGA is trading at $1.36 per share after a gain of $0.26 per share or 27.08% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MNGA. In particular, we’re interested in following the ongoing story surrounding the company’s grant and progress in Europe. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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