MagneGas to Acquire Trico Welding Supplies, Inc. in Northern California

TAMPA, FL--(Marketwired - March 22, 2018) - MagneGas Corporation ("MagneGas" or the "Company") (NASDAQ: MNGA), a leading clean technology company in the renewable resources and environmental solutions industries, announced today the Company has made a non-refundable deposit of $1.0 million toward the purchase of Trico Welding Supplies, Inc. ("Trico"). Trico is a $5.5 million revenue industrial gas and welding supply distributor with two locations in Sacramento, California. The Company and Trico anticipate the transaction will close within 3-5 business days assuming no unforeseen delays.

"The purchase of Trico will mark a critical next step in our acquisition plans," commented Ermanno Santilli, CEO of MagneGas. "We have consistently emphasized the importance of our acquisition strategy to accelerate our growth plans in the California and Texas markets. The addition of an exceptional sales team at Trico will be a key milestone in our expansion in northern California. As our primary west coast distribution partner for MagneGas2® for the past three years, we are intimately familiar with Trico, and we are very excited to augment their growth opportunities in the northern California market. We are already working through the logistics to establish a MagneGas production facility in the area, and we expect MagneGas2® to be a major competitive advantage in California, where renewable energy solutions such as ours are extremely well received. We are excited to leverage our expanded capabilities to drive organic growth for years to come."

"This acquisition of Trico is attractive to MagneGas for many reasons," commented Scott Mahoney, CFO of MagneGas. "The opportunity to acquire an exceptionally well run, profitable business in a prime market made sense strategically. Additionally, the combined scale of MagneGas with Trico provides us greater buying power for products, thereby improving margins and enabling us to pursue larger national accounts. Lastly, we have increased our revenue per share by approximately 65%, from about $0.85 of revenue per share after the Green Arc acquisition, to an estimated $1.40 of revenue per share once the acquisition is completed. We believe we are clearly demonstrating a path to generate rapid revenue growth, near term positive EBITDA, and ultimately positive earnings per share. This strategy is clearly paying off; once we close the transaction we will have increased our revenues per share by almost ten-fold from the end of 2017."