Taronis Provides Corporate Update
Preserving long-term shareholder value by adopting a rights plan to protect the value of tax assets by reducing likelihood of an ownership change
Improving capital position through completion of equity financing
Employee retention plan to incentivize and retain employees
PHOENIX, AZ, March 04, 2021 (GLOBE NEWSWIRE) —
Taronis Fuels, Inc., (“Taronis” or “the Company”) (OTCQB: TRNF), a global producer of renewable and socially responsible fuel products, today announced recent corporate actions taken to improve the Company’s capital position, retain and incentivize employees, and protect the availability of its net operating losses (NOLs).
On March 3, 2021, the Board of Directors of Taronis (the “Board”) adopted a shareholder rights plan designed to protect the Company’s ability to use net operating loss carryforwards (“NOLs”) under the Internal Revenue Code (“Section 382 Rights Plan”). Taronis estimates that as of December 31, 2020, and 2019, it had net operating loss carryforwards of approximately $27,000,000. To the extent that the NOLs and other Tax Benefits do not otherwise become limited, the Company believes that it will be able to carry forward and utilize a significant amount of NOLs and other Tax Benefits to offset future taxable income and gain, and therefore these NOLs and other Tax Benefits represent a substantial and valuable asset of the Company. However, if the Company experiences an “ownership change,” as defined in Section 382 of the Code (very generally a 50% change in ownership among certain 5% shareholders), its ability to use the NOLs and other Tax Benefits in any given year to offset taxable income and gain will be substantially limited, which could therefore significantly impair the value of those assets.