MagneGas buying gas-distribution company

TAMPA — MagneGas Corp. has signed a letter of intent to purchase an industrial gas distribution company in the Tampa Bay area. While not releasing its name, MagneGas says the more than 20-year-old distribution firm has estimated 2014 gross revenues of about $2 million. Further, its says the company is one of the largest independently owned gas distribution firms in the area selling a wide range of welding-gas products and services.

MagneGas (symbol: MNGA; recent price: $1.21) says it sees the distributor as a platform to more rapidly penetrate the market with MagneGas fuel.

“This purchase would provide a springboard to introduce and sell MagneGas 2 to a wider audience of customers around the Tampa Bay area,” Ermanno Santilli, CEO of MagneGas, says in a press release. “Separately, we intend to purchase a nearby property which will allow expansion of the headquarters for MagneGas Corp. as we continue to attract customers and partners from around the world.”