Wednesday, June 23, 2010

DDI Industry International Signs Agreement to Proceed with Phase II of the Magnegas Corp. (MNGA.OB) China Initiative

MagneGas Corporation announced yesterday that Beijing-based DDI Industry International (DDI) has signed an agreement to proceed with Phase II of the MagneGas China initiative. DDI will acquire the exclusive MagneGas™ Technology and manufacturing rights for the Greater China market, under the terms of the Phase II agreement.

DDI will directly invest $2.0 MM in MagneGas in two installments, and will grant to MagneGas 20 percent ownership in a new China-based Joint Venture, as compensation. This will give MagneGas and their investors a significant and perpetual share of China market operations.
DDI has pledged $1.0 MM by June 30, 2010 and $1.0 MM by September 30, 2010. Magnegas Corporation is selling 14,814,815 shares of their common stock to DDI.

DDI will create a new China-based Joint Venture company (MagneGas China) to house and administer the rights. DDI will look to take this Joint Venture company public in the Asian market in the future.

“We are very excited about our partnership with DDI and the opportunities now available to our company in the Greater China market,” stated MagneGas President Richard Connelly. “DDI is a Beijing-based company with over 10 years of experience in environmental protection and waste disposal. DDI plans to use the MagneGas™ Technology to recycle sludge and food oil waste and create MagneGas™, which it intends to sell to fuel city buses and taxis, as well as for the metal working market. With the investment and equipment purchase from DDI, we are for the first time sufficiently capitalized to properly pursue the potential of the MagneGas™ Technology and its many applications.”

Magnegas Corporation, based in Tampa, Florida, is the producer of MagneGas™. This is a natural gas alternative and metal working fuel made from liquid waste such as sewage, sludge, manure and certain industrial and oil based liquid wastes. Their patented Plasma Arc Flow™ process gasifies liquid waste. This creates a clean burning fuel that is in effect interchangeable with natural gas. However, it produces lower green house gas emissions. MagneGas™ can be used for metal cutting, cooking, heating or powering bi fuel automobiles.

For more information visit: www.magnegas.com.

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