TAMPA — MagneGas Corp. has signed a letter of intent to purchase an industrial gas distribution company in the Tampa Bay area. While not releasing its name, MagneGas says the more than 20-year-old distribution firm has estimated 2014 gross revenues of about $2 million. Further, its says the company is one of the largest independently owned gas distribution firms in the area selling a wide range of welding-gas products and services.
MagneGas (symbol: MNGA; recent price: $1.21) says it sees the distributor as a platform to more rapidly penetrate the market with MagneGas fuel.
“This purchase would provide a springboard to introduce and sell MagneGas 2 to a wider audience of customers around the Tampa Bay area,” Ermanno Santilli, CEO of MagneGas, says in a press release. “Separately, we intend to purchase a nearby property which will allow expansion of the headquarters for MagneGas Corp. as we continue to attract customers and partners from around the world.”
MagneGas has signed a purchase and sale agreement on a nearby industrial building to relocate its headquarters and research and development. The Tampa property is reported to be larger than its existing headquarters, more suitable as a headquarters and closer to its customers and suppliers.
The company expects to provide further details surrounding the distributor and building purchase once definitive agreements have been signed, which is expected in about 90 days.