MagneGas Applied Technology Solutions Inc (NASDAQ: MNGA) is up big early on in the trading session this morning after announcing a massive management change as well as a series of other corporate initiatives. Ultimately, the moves were made in light of what the company says is anticipated growth. So, it excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The corporate restructuring announcement;
- what we’re seeing from MNGA stock as a result of the news; and
- what we’ll be watching for ahead.
MNGA Announces Corporate Update
As mentioned above, MagneGas Applied Technology Solutions is up big in the market this morning after the company announced that it has moved forward with a series of corporate initiatives. In the release, the company said that these corporate initiatives are designed to support and accelerate the company’s anticipated growth.
The largest change made here is that the company has appointed a CEO. In the release, the company said that Scott Mahoney has been appointed to the position. Mahoney recently served as the SFO of the company, and has been in that role since December of 2016. The company’s previous CEO, Mr. Ermanno Santilli will be moving to the Chief Technology Officer position in order to focus on a number of advanced technology initiatives.
In another note, the company also said that it bought back all of the outstanding shares of its Series A Preferred stock. This transaction came to a total cost of $1 million for all 5 million shares. These shares provided some serious voting power, provind complete voting control over the company to the holders of these shares. As such, the Series A Preferred class of stock has been terminated, returning voting control to the Company and its shareholders.
In a statement, Ermanno Santilli, CTO at MNGA, had the following to offer:
Since joining MagneGas, Scott has been instrumental to our success, helping identify, oversee and integrate our recent acquisitions, as well as implementation of our growth strategy in the US and in Europe. Importantly, we are now operating at a revenue run rate of over $14 million, which represents almost a 500% increase over the same time last year. Moreover, we have undertaken a series of cost-saving initiatives that will further streamline our operations and enhance profitability. I look forward to working closely with Scott as we implement the next phase of our growth strategy.
The above statement was followed up by Scott Mahoney, the company’s CEO. Here’s what he had to say:
We would like to thank Ermanno for all his hard work and dedication to MagneGas. In his new role as CTO, he will be heavily focused on commercialization of the sterilization vertical and accelerating the development of other emerging applications for our plasma arc technology, which will be central to our long-term growth strategy.
What We’re Seeing From The Stock
As investors, we know that the news leads to moves in the market. When it comes To MagneGas Applied Technology Solutions, the news proved to be overwhelmingly positive. With the management update, it will be exciting to see how Mahoney leads the company through this exciting time and Santilli is still in a position where his talents won’t be lost. At the same time, voting power has been restored to shareholders and the company alike. All in all, this was a positive update. So, it’s not surprising to see that excited investors are pushing the stock up in the market this morning. At the moment (9:58), MNGA is trading at $0.27 per share after a gain of $0.028 per share or 11.43% 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 restructuring toward a technology focused company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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