Taronis Technologies Inc (NASDAQ: TRNX) is having a strong start to the trading session this morning and for good reason. The company announced that it signed a letter of intent to acquire a key asset. Today, we’ll talk about:
- The LOI;
- what we’re seeing from TRNX stock as a result; and
- what we’ll be watching for ahead.
TRNX Announces LOI News
As mentioned above, Taronis Technologies is having an incredibly strong start to the trading session this morning after announcing LOI news. The news came by way of press release early this morning.
In the release, TRNX said that it has entered into a non-binding letter of intent to acquire a contorlling interest in Water Pilot, LLC. Water Pilot is based in Aventura, FL.
Should the deal go through the investment shall be payable in stock and will come to a value of $1.275 million. The agreement will include conditional earn-out payments if certain revenue and cash flow metrics are achieved over the first two years of operation following closing.
Should all go well, the acquisition will take place on or before May 31, 2019. In a statement, Scott Mahoney, CEO at TRNX, had the following to offer:
We are very excited to announce our pending partnership with Water Pilot. We see tremendous synergies between our two leadership teams. The cross sales potential for our combined company is very promising, and has the potential to drive revenue growth for years to come.
Water Pilot has been very successful in penetrating some of the largest national retailers, restaurant operations, and hospitality companies in the US today. We believe they are on the verge of converting a number of these initial pilot programs into highly scalable national and international client relationships. As we are able to more fully disclose many of these prospective clients, we believe that we will be able to accelerate the adoption of Water Pilot technology with other leading companies in these business sectors.
We also see additional synergies across our teams, including strong political and commercial relationships that can accelerate the use of our cyanobacteria technology in Florida. We also have identified several of Water Pilot’s prospective relationships whom we believe would be receptive to using our MagneGas product for their key industrial clients. Lastly, we have already identified several promising leads for potential clients we can bring to the table in Europe and the Middle East, allowing us to build on existing relationships. We are highly confident that this transaction has the potential to unlock value across the entire combined organization.
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. When it comes to TRNX, the news proved to be incredibly positive.
After all, should this acquisition take place, the company will bring a new revenue-generating asset on board, and one that will help the company to improve on its own technologies. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:37), TRNX is trading at $0.65 per share after a gain of $0.02 per share or 3.21% 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 TRNX. In particular, we’re interested in following the story surrounding the company’s potential acquisition as well as its continued work to drive value for investors. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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