MagneGas Corporation (NASDAQ: MNGA) is having an overwhelmingly strong day in the market today, and for good reason. The company announced that it has completed a key acquisition, leading to excitement among investors and sending the stock screaming towards the top. Today, we’ll talk about the news, what we’re seeing from MNGA, and what we’ll be watching for ahead.
MNGA Announces Completion Of Acquisition
As mentioned above, MagneGas Corporation is having an overwhelmingly strong day in the market today after announcing that it has completed a key acquisition. In a press release issued early this morning, the company announced that it has completed the acquisition of all assets of Green Arc Supply, LLC, an independent industrial gas and welding supply company.
According to the release, MNGA paid a total of $2.5 million for the acquisition. $1.0 million was a cash payment and $1.5 million was paid in restricted common stock. The company said that all cash expenses related to the acquisition were paid in full with cash on hand at the time of closing. In a statement, Ermanno Santilli, CEO at MNGA, had the following to offer:
We are pleased to complete this next step in our expansion strategy… This acquisition alone will immediately grow our revenue run rate by over 50%, when we combine this transaction with the acquisition we completed in January in San Diego, we have nearly double our industrial gas and welding supply revenue run rate. Moreover, this acquisition brings a deep team of highly experienced sales executives that plan to immediately leverage our MagneGas2® renewable cutting fuel to accelerate their aggressive organic growth plans going forward. We now have access to two best industrial gas markets in the US: east Texas and southern California. In addition, we now have our second fully operational MagneGas2 production facility, located at Green Arc’s Tyler, Texas location, which will help us service the local market and further support our growth plans for 2018 and beyond.
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 the case of MagneGas Corporation, the news proved to be overwhelmingly positive, leading to excitement among investors and sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:18), MNGA is trading at $1.28 after a gain of $0.12 per share (9.83%) 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 looking forward to seeing revenue growth following the asset acquisition. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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