Otc Stocks Gainers

Otc Stocks Gainers

MagneGas (OTC:MNGA) Nearly Hits Another 52-Week High

MagneGas Corporation (OTC:MNGA) has been another big gainer from the bulletin board today jumping nearly 40 percent on heavy volume. Shares of MagneGas as I write are up more than 9 cents to $0.33 per share on volume of nearly a million shares. This lightly traded stock only averages about 71,000 shares per day.

MagneGas, a producer of a metal working fuel and natural gas alternative made from liquid waste, today announced that it has entered into a non-binding Memo of Understanding (“MOU”) with Inmobiliaria Grupo Corporativo S.A. de C.V. (“IGC”). Pursuant to the MOU, IGC states its intention to purchase a 100 kW or greater Refinery and exclusive distribution rights for the Mexico market for an initial five-year period from the Company, and IGC has paid MagneGas $150,000 for a six-month period of market exclusivity. This option expires on February 28, 2011. If IGC exercises its option that payment will apply to the Refinery purchase price; the payment is non-refundable if IGC does not exercise the option.

As MagneGas President Richard Connelly explains, “Mexico currently suffers from a significant housing shortfall. In response, major home builders are rapidly creating high density communities of free-standing units that can number in the thousands. Each community is required to have one wastewater facility per a set number of units. IGC intends to sell refineries to these builders to replace traditional facilities, mitigating an environmental concern and providing clean fuel and sanitized water for community use.

“We have been very impressed by IGC, both for the potential of their business model and the quality of their management team. We are working on designing a refinery to meet their specific need. Assuming we are successful in doing so, we believe IGC represents the perfect partner and platform to capitalize on the Mexico market opportunity.”

If MagneGas is not able to provide custom pricing specifications by February 28, 2011, the Company will extend the option for the earlier of six months or delivery of the pricing specifications.

Founded in 2007, Tampa-based MagneGas is the producer of MagneGas, 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. The Company’s patented Plasma Arc Flow process gasifies liquid waste, creating a clean burning fuel that is essentially interchangeable with natural gas, but with lower green house gas emissions. MagneGas can be used for metal cutting, cooking, heating, powering bi fuel automobiles and more.