TRNX stock is moving higher in early trading on January 3, 2020, after the company announced a $1 million stock buyback.
Taronis Technologies (NASDAQ: TRNX), a sustainability technologies company, announced that the Company has approved a $1 million common stock buyback program. This program is expected to be discretionary, with periodic buybacks expected throughout the first quarter of 2020.
“With the commencement of the $18.75 million gasification purchase under Taronis Fuels, our Company is expected to receive $1.3 million in royalty payments over the next 90-100 days,” commented Scott Mahoney, CEO of Taronis. “Our Company is committed to maximizing shareholder value through all options, including cash dividends and buyback programs. It is our assessment that an immediate buyback program provides a meaningful way to deliver maximum shareholder value given the expected free cash flows to Taronis early in 2020.”
On December 30, 2019, Taronis Technologies announced that the Company had received formal notice from the Turkish Ministry of Trade that a conditional ban has been made public, limiting the use of acetylene, propane and other industrial gases widely used as metal cutting fuels within the Republic of Turkey.
The Company’s executive team met with The Director General of Imports, Mr. Ahmet Çetinkayiş during a recent series of cabinet level meetings in Ankara. During this meeting, the Director General delivered a ceremonial plaque declaring the government’s intention to ban alternative prevailing metal cutting fuels, making MagneGas the exclusive metal cutting fuel across the Republic of Turkey.
The Director General further informed the Company that the formal ban will be enacted once the government is satisfied that Taronis’ new Ankara based joint venture can meet the needs of the local market for metal cutting fuels. The government has confirmed that the local market is approximately $200 million in annual consumption. To meet this level of demand, the Turkish government also confirmed that approximately one hundred of Taronis’ patented 300 KW Venturi plasma arc gasification units will be required.
The government has informed Taronis to be prepared to deliver all one hundred gasification units over a 24 month time frame. This would require a significant expansion of the existing $165 million purchase contract, which covers only thirty gasification units, and was recently approved and commenced in mid-December.
“With our most recent meetings in Ankara, our team accomplished a great deal that is only now beginning to be fully revealed,” commented Scott Mahoney, CEO of Taronis. “We sought the ban of acetylene from the very beginning in our dialogue with Turkish officials. This is one of the most dangerous, environmentally harmful industrial products and it has no place in modern society.”
“Our core value proposition to the Turkish government has been the ability to reduce the frequency of needless injuries and fatalities related to acetylene. Turkey has created a vast and growing industrial base, and MagneGas has the ability to make tens of thousands of workers across Turkey safer and more productive.”
“Our technology not only delivers clear safety and productivity benefits of MagneGas, but also significant water conservation and environmental benefits. This compelling combination of factors has caused the Ministry of Trade and the Ministry of Energy and Natural Resources to become strong advocates for Taronis and our renewable metal cutting fuel, MagneGas. We are grateful for their support, and we look forward to helping Turkey achieve their objective to completely ban acetylene within 24 months,” concluded Mr. Mahoney.