Taronis Fuels Expands Wholesale Gas Operations Across Northern California
Adds Approximately $2 Million in SalesPHOENIX, 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 1st, 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.”“As a credit to our highly experienced team, we are able to launch an entirely new market with very limited capital expenditures, and a very limited number of additions to payroll. As a result, much of the gross income from this growth can immediately impact overall profitability, enabling the Company to quickly self-fund further growth elsewhere within our overall business model.”“I believe that when we look back in 12 months, and again in 24 months, this business model will have been an outsized catalyst for our financial success across our US operations,” concluded Mr. Mahoney.About Taronis Fuels, Inc.Taronis Fuels, Inc. is a global producer of renewable and socially responsible fuel products. Our goal is to deliver environmentally sustainable, technology driven alternatives to traditional fossil fuel and carbon-based economy products. We believe our products offer a vastly cleaner solution to legacy acetylene and propane alternatives.Taronis is also dedicated to providing fundamentally safer solutions to meet the industrial, commercial and residential needs of tomorrow’s global economy. Our products have been rigorously tested and independently validated by global gas authorities as vastly safer than acetylene, the most dangerous industrial gas in use today.Lastly, we strive to deliver products that offer significant function superiority at a reduced cost to the end consumer. Through these efforts, we support 9 of the 17 United Nations Sustainable Development Goals. For more information, please visit our website at www.taronisfuels.com/FORWARD-LOOKING STATEMENTSThis press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.Investor Contacts:
Michael Khorassani
IR@Taronisfuels.com
