MagneGas Corporation sings LOI to direct purchase of Infinite Fuels

In Florida, MagneGas Corporation announced the execution of a Letter of Intent to form an Ireland-based holding company for the express purpose of acquiring 100% of Infinite Fuels, GmbH, an emerging biofuels company based in northern Germany. MagneGas will initially own a 40% stake in the joint venture, with the possibility of increasing the Company’s equity stake to 70%. The remaining equity stake will be owned by the current principals of Infinite Fuels. Following formation of the joint venture, the new entity will assume 100% ownership of Infinite Fuels. The initial transaction is expected to be funded through a combination of cash on hand and equity in the new joint venture.

The joint venture will operate in two renewable energy segments. First, Infinite Fuels will launch its biodiesel operations at an existing facility based in northern Germany, currently operating through a public-private partnership. The purpose of this project will be to pilot a government-backed initiative to convert bio-waste to energy. The second initiative will be to launch the first MagneGas2® production facility in Europe. As part of the proposed transaction, the joint venture entity will have the option to purchase up to six 300 KW gasification units from MagneGas over the next 5 years. The joint venture will also pay annual consulting and exclusivity fees, royalties and equity ownership derived income to MagneGas.