Taronis Technologies details 2020 development goals for agricultural waste tech
Taronis Technologies announced its key business development goals for its agricultural waste sterilization business in 2020. In addition, the Company provided management's view on recent capital market activities in relation to these objectives. The company said, "First, the Company will look to complete a joint venture for the sterilization of animal waste early in 2020. Specifically, the Company is focused on a joint venture in North Carolina to address the issues related to animal waste produced by the hog industry. North Carolina is the third largest hog producing state in the US today, and this herd generates over 15 million tons of animal waste every year. In fact, under the Smithfield Agreement in 2000, animal waste is the primary limiting factor for the growth and size of the hog industry in North Carolina. Taronis recently completed an 18 month USDA grant funded project that produced clear and compelling validation of its ability to solve several of the critical dangers associated with untreated animal waste. A comprehensive white paper has been submitted to the USDA for technical review. The report documents a number of critical benefits from our technology on animal waste. First, Taronis has clearly demonstrated the ability to eradicate pathogens, including E coli and fecal coliform. Second, the Company has demonstrated that once sterilized, there is no recurrence in pathogen growth within the sterilized materials. Third, Taronis breaks down complex compounds, including pharmaceuticals commonly dissolved in animal urine. Lastly, the Company documented our ability to measurably reduce harmful metals commonly found in animal waste. The Company is actively engaged in dialogue with one of the largest hog producers in the US. The Company has proposed a multi-faceted project that would validate the commercialization at scale of its animal waste sterilization technology. This would be accomplished through the deployment of plasma arc sterilization units at scale across North Carolina. At least two leading universities within North Carolina have been prioritized and have been invited to participate in the project to further validate the health benefits of Taronis' sterilization process. Lastly, these same universities would independently validate the ability to safely utilize the animal waste streams post-treatment for multiple end agricultural applications, including hydroponic agriculture and fertilizer feedstocks." "Our team has placed a top priority on launching the highest possible quality joint venture in North Carolina," commented Scott Mahoney, CEO of Taronis. "We have already had positive and meaningful discussions with one of the leaders in the global hog industry. With the recent epidemic of African swine fever killing almost 6 million hogs worldwide, there is a real need for US hog production to safely fill the demand gap. Our technology can solve the critical gating issue to production growth in North Carolina. We can help the entire state reduce the health and environmental issues related to the disposal of animal waste. In addition, we can help the industry grow safely, providing lasting economic benefits in North Carolina, and eventually everywhere hogs are produced. We recently announced a $25M convertible preferred offering. We have received many inquiries from shareholders as to why we would contemplate this transaction. First, we believe we can capitalize on a very large economic opportunity solving this waste issue across the global hog industry. We believe this technology is very close to commercial viability, and we want to ensure the Company is financially prepared to support a full scale launch if our prospective industry partner wants to rapidly expand the project. Lastly, we want to take this opportunity to remind all investors that the recently announced offering is deliberately structured so that the Company can service all amortization with cash payments. In addition, the Company has recently provided a series of updates on a $165M contract under a previously owned subsidiary, Taronis Fuels, which has been successfully spun off and is expected to begin trading in the near term. Management has concluded that the royalties due back to Taronis from the $165M contract should be able to adequately service the periodic payments for the proposed convertible preferred, thus minimizing any potential dilution. We intend to provide additional updates on all of the other commercial activities of Taronis in the coming days. The completion of the proposed financing is subject to shareholder approval. We expect that our comprehensive updates, combined with material updates related to the $165M contract under Taronis Fuels will give our shareholders the confidence to approve the proposed financing in due time."