Saturday, June 11, 2011

rowgr reports on CEO's comments at JBII AGM

I took many notes to report back to our fellow investors in Iowa - here is my recap that I shared. Once again, nice meeting you justice and other iHubbers.

John spoke for an hour or so. He started with discussing the financials over the last year. He mentioned the fact that the reports have been filed late the last couple of times. He said he would rather be late and accurate than on time and incorrect. JBI is working on getting the in house infrastructure in place that will be able to handle the processing of financials for a company with multi-currencies and multi-locations. The are actively searching for a CFO to cap this team when it is completed.

He spoke many times about the fact that many of the suppliers and contractors utilized by JBI are shareholders. They compensation for many of these is in stock not cash. Therefore, they are building their vested interests in the company by providing high quality products in a quick turn around.

The processor has undergone a redesign over the last year. They key features are:
1. Low capital costs
2. Low operating costs
3. High quality fuel (Fuel oil 2,4,6 - diesel, gasoline, natural gas)
4. Highly automated
5. Residue is now removed without shutting down the machine
6. It is a continuously processing machine
7. Low maintenance time
8. Modular design

He mentioned that there has been no wear on the tank with the processor that has been running for a year. He said that a tank could easily work for 10 years without having to be replaced.

As mentioned, the processor can now produce many types of fuel. It produces fuel oil 2, fuel oil 4, fuel oil 6, diesel and gasoline that does not need to be refined, and natural gas that is used to run the processor. The sulphur content of the product is .17 or 1 ppm or less. They also are completed the work on a fuel lab on site so they can do all the testing of the products with immediate results instead of having to wait for outside labs.

John made a point of mentioning that many of the processes that JBI has been through in the last year or two have taken more time than originally planned. He stated that JBI wants to do things correctly and completely so there is no refuting the results. They have used the best labs to validate the product, gone through due diligence with many large companies, and are in the process of getting patents for many of the features and parts of the processor.

He talked about the business plan for Joint Ventures with JBI. He said that they are now focusing on sites that will utilize many machines. They feel that by doing this it just solidifies how well the JBI processors work. They are working with Smurfit-Stone to get a site started in Florida. He mentioned that though Waste Management, JBI is getting all the plastic wastes from Chrysler. He also mentioned that there are some Joint Venture agreements that are coming to completed with some Fortune 500 companies that have been in the works for a year. The structure for these joint ventures will be that JBI will own and operate the processors on the sites. JBI will not pay for the waste plastics. In return, the JV partner will receive 20% of the revenue from the products manufactured on their locations.

John talked about the support that JBI is receiving. Many of the suppliers are shareholders. Many of the manufacturers are shareholders. He spoke about having State and local support for the company with state senators, the Buffalo mayor, and the NY Empire State Development Department. He mentioned they have the full support of the NY DEC. He also mentioned that all filings have been completed and the final permits should be received soon. Once this happens, the plant will expand to three processors. He also spoke about the last pipe that was issued. Its purpose was to achieve working capital for expansion and starting sites. The pipe included high net worth individuals, a middle east billionaire conglomerate and fund managers.

As the final part of his presentation, he brought the director of business development up on stage. Together, they announce the signed agreement with Coco Paving from Toronto for the sale of 1 to 2 million liters of product for the first year. This sale was completed at 5:05 pm on Friday afternoon.

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