MagneGas signs LOI for $2.65M equipment sale to German company
MagneGas announced that it has entered into its largest equipment sale to date with a Letter of Intent, or LOI, to manufacture and deliver certain equipment and supplies to a company based in Germany. MagneGas will receive $2.65 million for its proprietary Gasification and Sterilization systems and will supply MagnesGas2 fuel and cylinders. The sale marks a new era for the Company as it seeks to expand the availability of its technology and MagneGas2 fuel across the European continent in the global $5 billion metal cutting fuel market. Under the terms of the LOI, MagneGas will manufacture and deliver: 1) A 300KW stationary Gasification system: 2) A 100KW mobile Sterilization system: 3) 250 cylinders full of MagneGas2; and 4) 50 MagneGas regulators. A deposit of $25,000 has been received, with progress payments totaling $2.625 million due upon signature of the definitive agreements, construction completion and delivery of systems with related supplies. The LOI calls for exclusive distribution rights in Germany, with an option to purchase rights to certain additional countries with system deployments.