MagneGas finalizes LOI with German biomass company
According to a regulatory filing, on October 7, MagneGas finalized a Letter of Intent with a German biomass company. The LOI was signed on August 28, 2016, however, the LOI did not become binding until the German biomass company paid a non-refundable deposit of $25,000 to the company on October 7. The LOI calls for the company and the German Counterparty, within 90 days of the LOI's execution, to sign definitive agreements for the Company to manufacture and deliver: a 300KW stationary Gasification system; a 100KW mobile Sterilization system; 250 cylinders full of MagneGas2; and 50 MagneGas regulators. If the definitive agreements are signed, the German Counterparty will make progress payments totaling $2.625M due upon signature of the definitive agreements, construction completion, and delivery of systems and related supplies. The German Counterparty will have exclusive distribution rights in Germany, with an option to purchase exclusive distribution rights to certain additional countries with additional system purchases.