MagneGas Applied Technology Solutions, Inc. (NASDAQ: MNGA) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has been awarded a grant, bringing millions of dollars through the door. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The grant;
- what we’re seeing from MNGA stock as a result; and
- what we’ll be watching for ahead.
MNGA Announces Grant News
As mentioned above, MagneGas Applied Technology Solutions is having an incredibly strong start to the trading session this morning after it announced that it has been awarded a grant. In a press release issued minutes ago, the company said that it has received a $7 million grant from the European Commission. The grant was awarded to MNGA and its partner Infinite Fuels, an emerging biofuels company in northern Germany.
In the release, the company aid that the grant was awarded by the European Commission’s Executive Agency for Small and Medium-sized Enterprises, as part of their LIFE programme. This program was designed as a funding instrument that recognizes and supports environmental and climate preservation. In a statement, Ermanno Santilli, CEO at MNGA, had the following to offer:
Completion of this grant, not only through receiving the funding in hand but also the associate impact of the grant’s credibility and support of our mission, is a major milestone for us as we introduce and build commercial opportunities for MagneGas in Europe… First, this demonstrates the viability of gaining access to large European government-backed grants and funding for alternative energy projects and clean technology solutions similar to our technology.
The grant writing process was extremely well managed by our advisors at Ernst & Young, and is encouraging as we seek out similar non-dilutive grant opportunities for our sterilization technology in Europe. Lastly, this project is expected to provide a steady source of scalable revenues to MagneGas as we expand our relationship with Infinite Fuels in Germany.
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 grant means that the company has secured a large chunk of funding that will allow it to greatly expand on its relationship with Infinite Fuels. So, it comes as no surprise to see that excited investors are sending the stock toward the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:30), MNGA is trading at $0.44 per share after a gain of $0.06 per share or 15.64% 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 use of the grant funding as well as other grants that are in various stages of applications. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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