MagneGas Corporation (NASDAQ:MNGA)
Shares of MagneGas Corporation (NASDAQ:MNGA) dropped 6.68% even as the company announced that the U.S. Patent and Trademark Office (USPTO) had granted it a ground breaking patent. The ‘MagneCule’ patent details the use of energy in a manner that changes the shape of affected molecules – thereby changing their bonding mechanism.
Ground Breaking Patent
According to the MagneGas Corporation (NASDAQ:MNGA) a change in the bonding mechanism could lead to a more effective energy footprint – particularly in hydrogen molecules. The patented MagneCule theory according to chief executive officer Ermanno Santilli has numerous applications in the energy, transportation, and space industries.
“We believe that as these industries are under pressure to innovate, our newly released patented technology places us in an ideal position to provide value added innovation to numerous applications,” said Mr. Santilli
MagneGas Corporation (NASDAQ:MNGA) is planning to explore a low-cost proof-of-concept development project, and licensing opportunities, to validate the new technology. Chief Financial Officer Scott Mahoney expects development projects to help expand the company’s footprint in the target industries.
MagneGas Corporation (NASDAQ:MNGA) is an alternative energy company focused on the production of hydrogen-based fuel through gasification of carbon rich liquids. The company boasts of a patented process that converts liquid wastes into MagneGas fuels. The company’s leading product, MagneGas2, has already proved to be cleaner, more productive, and faster than other alternatives in the market.
MagneGas2 Marketing Drive
The company recently confirmed the appointment of a senior supply chain industry executive who could attract up to 80 distinct automotive fabrication and manufacturing facility relationships. MagneGas Corporation (NASDAQ:MNGA) expects the relationships to help drive sales for MagneGas2.
Some of the facilities have an annual spend of between $75,000 and $100,000 on alternative sources of energy. The hire, according to the CEO, represents a significant step in the company’s push to penetrate the global automotive industry.
Last month, MagneGas Corporation (NASDAQ:MNGA) received a grant of $431,874 from the US Department of Agriculture, the grant is to be used to accelerate the commercialization of MagneGas Plasma Arc Venturi stabilization system. The company plans to carry out a number of commercialization projects in the U.S, Europe, Latin America and Asia.
“This funding provides a significant source of non-dilutive capital for further investment in our sterilization business segment,” said Mr. Mahoney.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.