Taronis Technologies news about a $165 million deal for the clean technology company has TRNX stock soaring on Monday.
Taronis Technologies (NASDAQ:TRNX) notes that a new deal will have it selling gasification units to a buyer in Turkey. The agreement will have the group buying a minimum of 15 units over an 18-month period. There’s also an option for the buyer to purchase an additional 15 units for a total of 30.
The Taronis Technologies news release about the deal mentions that the upfront purchase price of the units is $3.75 million. There’s also an additional $1.75 million charge per unit that covers 10 years of maintenance on the gasification devices.
The deal doesn’t just stop with the $165 million. That price doesn’t include royalties that will be paid to Taronis Technologies. This will have TRNX receiving a perpetual 3% royalty on all gas that is produced.
The Taronis Technologies news also includes some high hopes for the company. It mentions that the market in Turkey will likely need a total of 75 of its gasification units to serve the entire economy. This doesn’t guarantee any type of deal for more units, but is worth mentioning.
Taronis Technologies points out that it will need to get regulatory approval from official in Turkey in the fourth quarter of 2019. This is one of the conditions with its buyer before the deal can move forward. After it does this, it will be able to receive an initial 25% payment from the buyer.
TRNX stock was up 71% as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.