Taronis Fuels Expands Wholesale Gas Operations Across Northern California

Adds Approximately $2 Million in Sales

PHOENIX, AZ, Sept. 21, 2020 (GLOBE NEWSWIRE) -- Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced the expansion of its existing wholesale industrial gas operations into the Northern California market. This is the second significant geographic expansion of this business segment in the past two months.

The Company acquired a large, regional industrial gas wholesale distributor in May of 2020. This distributor historically operated primarily in the Atlanta, Dallas, Orlando and Tampa metropolitan markets. In late August, the Company expanded this business into the Houston market, adding $1 million in new sales. On October 1^st, the Company will launch its newest operations, serving the Sacramento, San Jose, San Francisco and Oakland markets.

This geographic expansion represents the largest single organic expansion initiative in Taronis Fuel’s history. Historically, the Company has driven most of its rapid growth through acquisitions. Due to the accelerated pace of these acquisitions, organic growth was a relatively small component of the Company’s overall growth. With the acquisition of TGS in May, the Company has now shifted to a more balanced emphasis on leveraging its existing scale, depth of management and access to proprietary renewable fuel products to drive organic revenue growth.

This expansion in Northern California is expected to add approximately $2 million annually in highly profitable industrial gas sales, representing a 25% increase in sales for this business segment. When the $1 million in new business from Houston is included, the Company will have already grown its wholesale industrial gas segment 38% on an annualized basis in less than four months. As previously disclosed, the Company has identified more than twenty new markets for expansion of the wholesale industrial gas business, which is a 100% organic growth driver for the Company.

“We are excited to share this expansion announcement,” commented Scott Mahoney, CEO of Taronis Fuels. “Our unique HVAC-centric industrial gas business model presents a compelling opportunity to accelerate our organic growth for multiple years to come.”

“This business model enables rapid geographic expansion with a very high degree of revenue and profit visibility prior to any given new market launch. Through long-standing strategic client relationships, we knew we could launch the Northern California market, with a clear path to immediate, scaled profitability well before a single dollar of capital was invested in this expansion.”