PHOENIX, AZ, Dec. 02, 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 has amended the previous buyout of the royalty agreement between the Company and BBHC, Inc. The amendment calls for a shortening of the period in which BBHC is eligible to receive a royalty from Taronis Fuels for any sales that are directly tied to the Company’s patented fuel technology. The prior agreement called for a five-year royalty period, which has been shortened to now terminate on December 31, 2021. The royalty payments primarily pertain to the sale of gasification units used to produce MagneGas, a renewable metal cutting fuel product that competes directly with acetylene, propylene, and propane products.
As consideration for the transaction, the Company agreed to forgive approximately $2.1 million in cash obligations due from BBHC to Taronis Fuels. In the event BBHC sells its stake in Tarus Therapeutics, the first $2.1 million in net proceeds to BBHC would instead be conveyed to Taronis Fuels as a contingent payment. The Company also agreed to convey certain prepaid assets to BBHC valued at approximately $1.1 million. Lastly, the Company agreed to convey 1 million shares of its restricted common stock to BBHC.
“We felt this was a prudent and important step in severing all ties between Taronis Fuels and its legacy parent,” commented Scott Mahoney, CEO of Taronis Fuels. “It has become increasingly clear to us that BBHC does not have a viable path to repay the balances due to our Company prior to year-end. We utilized the transaction, as detailed, to immediately clear the balance due.”
“Given that BBHC has virtually no liquid assets with which to repay Taronis Fuels, we felt this was the most efficient path to resolving the issue. In addition, curtailing the royalty period from five years to one year is expected to greatly reduce potential future royalty expenses due to BBHC. The Taronis executive team is focused on preparing a pristine, highly liquid balance sheet as we position the Company for a promising 2021,” 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 function 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