TRNX stock has been one of the biggest gainers in the market today in early morning trade as it climbed by as much as 97%. Investors flocked to Taronis Technologies (NASDAQ:TRNX) following the publication of its press release regarding a landmark deal.
Florida-based energy company Taronis Technologies announced that it has bagged a contract worth $165 million. The deal in question is a significant one for the company, so it’s no surprise that the market’s reaction was extremely positive. The deal pertains to Taronis Fuels’ gasification units, 15–30 of which have been sold to a company in Turkey.
Initially, Taronis will sell 15 gasification units over the course of the first 18 months of the deal. However, there is an option by way of which a further 15 units could be sold during that initial period. The company is going to get an upfront payment of $3.75 million for each unit, and a further $1.75 million will be paid per unit by the purchaser as part of a maintenance contract spanning 10 years. More importantly, Taronis will also get a royalty of 3% for the gas that is produced by the purchaser.
TRNX stock is up by 97% and is now trading at $0.61 on a hefty volume of over 74.50 million shares.
Taronis has not yet revealed the name of the company with which it has entered into a contract, but it has added that if the demand in Turkey is to be met, then the company would have to order a total of 175 gasification units. If Taronis can manage to get those contracts as well, then it would be a huge deal for the company and TRNX stock.
If all 30 units are sold, then the total value of this deal stands at $165 million, including the 3% in royalties. That being said, Taronis Technologies also has to clear Turkish regulatory requirements before the deal can be consummated formally.
Despite today’s big jump, TRNX stock is still down over 90% year-to-date.
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