The US Bankruptcy Court gave an order to Taronis Fuels, Inc to obtain DIP financing on an final basis on December 12, 2022. As per the order, the debtor has been authorized to obtain a credit facility in the total amount of $11 million consisting of $5.60 million on post-petition multi-draw loan from Tech Capital, LLC. The DIP loan would either carry an interest rate of prime rate 6% p.a. The DIP facility would mature either on January 20, 2023, or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier.

Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.10 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. The lender is represented by Alexandra Rhim and Jacqueline James of Hemar, Rousso, & Heald, LLP as its legal counsel.