Magnegas Applied Technology Solutions Inc (NASDAQ: MNGA) is hitting a home run in the market early on this morning after announcing acquisition news. According to a press release, the company has closed a key acquisition, leading to excitement among investors who are sending the stock screaming for the top. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from MNGA as a result; and
- what we’ll be watching for with regard to the stock ahead.
MNGA Announces The Completion Of An Acquisition
As mentioned above, Magnegas Applied Technology Solutions is flying in the market early on this morning after announcing acquisition news. In a press release issued early this morning, the company said that it has completed the acquisition of an independent industrial gas and welding supply distributor. The distributor acquired by MNGA is located in Shreveport and the acquisition came with a price of $1.5 million in cash. The total cost has been paid at the closing of the transaction.
In the release, the company said that the acquisition expands its geographic footprint in the norther Louisiana market along a significant industrial corridor. Through the acquisition, the company now has strong exposure to the oil and gas production and refining markets in this area. It is also expected that the acquisition will move the company into the medical gas business for the first time. In a statement, Ermanno Santilli, CEO at MNGA, had the following to offer:
This acquisition gives us meaningful economies of scale in a very attractive market… Shreveport is an extremely strong market for industrial gases, particularly metal cutting fuels, that support the oil and gas industry. We are excited to combine the scale of our Green Arc location with our newly added team and begin driving improved profitability in a growing market.
This acquisition is a massive deal. While the price tag was small, being in the Northern Louisiana market is a big win for MNGA and their ultimately goal of restructuring. Through the acquisition, the company is well-positioned to sell its technology and the medical gas industry is just icing on the cake.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Magnegas, the news proved to be overwhelmingly positive. After all, this acquisition came with a relatively small price tag, but adds tremendous value for investors. So, it comes as no surprise that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:23), MNGA is trading at $0.26 per share after a gain of $0.021 per share or 8.88% 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 story surrounding the company’s continued work to restructure and move further into the technology space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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