Taronis Fuels Retires $7.05 Million of Convertible Note

Phoenix, Arizona, UNITED STATES


Enhances Balance Sheet, Simplifies Capital Structure

PHOENIX, AZ, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced it intends to repay $7.05 million of the existing $7.65 million senior, secured convertible note. Only one note holder requested to continue to maintain their existing $0.6 million note. This same note holder also agreed to invest an incremental $0.6 million in the previously announced $10.85 million equity private placement which closed October 14, 2020. Approximately $1.6 million in existing note holders elected to exchange their convertible notes on the same terms as the private placement.

“We believe the decision to retire nearly all of the convertible note makes a great deal of sense from several perspectives,” commented Scott Mahoney, CEO of Taronis Fuels. “First, this debt instrument was our largest single tranche of debt, and it was our largest secured credit facility. In addition, it is the only indebtedness on our balance sheet that had a claim on all of our business assets. By repaying all but one note holder, and leaving that small balance in place, we now have significantly greater flexibility to complete a line of credit with a traditional banking institution at a greatly reduced cost of capital.”

“Second, eliminating nearly all of our convertible debt balances significantly simplifies our balance sheet. Retiring this debt instrument greatly reduces the uncertainty that we may otherwise face as we work towards a desired up-listed to a national exchange.”

“Lastly, meaningfully reducing our leverage, particularly a debt instrument with a variable conversion component, is expected to meaningfully improve our ability to attract additional investors to the Company. This is a very significant reduction in our overall risk profile, which should benefit all existing shareholders as we continue to execute our growth objectives,” concluded Mr. Mahoney.

About Taronis Fuels, Inc.

Taronis Fuels, Inc. is a global producer of renewable and socially responsible fuel products. Our goal is to deliver environmentally sustainable, technology driven alternatives to traditional fossil fuel and carbon-based economy products. We believe our products offer a vastly cleaner solution to legacy acetylene and propane alternatives.

Taronis is also dedicated to providing fundamentally safer solutions to meet the industrial, commercial and residential needs of tomorrow’s global economy. Our products have been rigorously tested and independently validated by global gas authorities as vastly safer than acetylene, the most dangerous industrial gas in use today.

Lastly, we strive to deliver products that offer significant functional superiority at a reduced cost to the end consumer. Through these efforts, we support 9 of the 17 United Nations Sustainable Development Goals. For more information, please visit our website at www.taronisfuels.com/

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.

Investor Contacts:
Michael Khorassani
IR@Taronisfuels.com