Taronis Ends Existing $8 Million ATM Funding

Company Provides Details Use of Proceeds

PHOENIX, AZ, March 04, 2020 (GLOBE NEWSWIRE) -- Taronis Technologies, Inc., (“Taronis” or “the Company”) (NASDAQ: TRNX), a sustainability technologies company with patented water decontamination and conservation applications, today announced that it has successfully ended a previously announced $8 million funding. On February 12, 2020, the Company announced an at-the-market (“ATM”) financing conducted by Benchmark, a highly respected investment bank based in New York City. The financing involved selling shares of common stock into the open market without a discount, and with no additional considerations offered. There were no warrants issued, and no additional rights or obligations were created. The proceeds of the capital raise are as follows:

First, the Company will retire the $2 million Series G convertible preferred obligation that matures on March 31, 2020. This repayment eliminates the immediate risk of a potentially highly dilutive, uncontrolled liquidation event that the Company believes would otherwise be highly detrimental to shareholders.

Second, the Company has successfully retired all outstanding working capital obligations created prior to or during the recent spinoff of Taronis Fuels, a former subsidiary. Both Companies have strong and clean working capital positions at this time.

Third, the Company has immediate opportunities to invest in multiple sterilization projects to serve the agricultural industry. Additional information on this opportunity will be provided in the coming days.
Fourth, the Company has significant opportunities to scale its Water Pilot operations both domestically and internationally. With additional financial resources, the Company believes it can significantly increase the current forecast for the Water Pilot revenues, which are currently budgeted at $2 million for 2020.

“We are pleased to successfully complete the ATM process,” commented Scott Mahoney, CEO of Taronis. “We fully recognize that the ATM, in conjunction with the recent market turmoil created by the coronavirus epidemic placed significant short term pressure on our common stock share price. We are highly confident that this capital infusion will create real and lasting value for shareholders going forward.”

“Our entire executive team and board of directors are solely compensated using common stock, so we fully appreciate the impact of recent events for all shareholders. However, the opportunity to aggressively expand the Water Pilot and accelerate our agriculture waste treatment solutions is real and immediate. With a fully funded business model for 2020, we believe we have an excellent opportunity to capitalize on recent business developments to grow our business for the long term,” concluded Mr. Mahoney.