- Investment of $10 Million in equity capital
- Successful independent review of its Plastic2Oil® ("P2O®") technology by SAIC
- John Bordynuik to become Chief of Technology ("CTO")
- Senior RockTenn executive Kevin Rauber to join the Company as CEO and President
- Transition to governance practices consistent with other leading companies
JBI is pleased to announce that investors have agreed to invest $10 million of equity capital via a private placement of unregistered securities at $0.80 per share. The Investment Group participating consists of prominent private equity investors, venture capitalists, investment bankers and accomplished corporate executives.
The Company's Chief Financial Officer, Matthew Ingham, commented:
"The timeliness of this financing is ideal. We now have the capital resources to accelerate the commercial roll-out of our P2O processors at our Niagara Falls plant and the initial RockTenn sites, endeavoring to achieve our near term goal of becoming cash flow positive."
Successful Review of P2O Technology by SAIC
In conjunction with the financing, SAIC Energy, Environment & Infrastructure LLC ("SAIC") was engaged to perform an independent review of the P2O technology and its commercial viability. The preliminary report provides a detailed analysis of the technology, process and business model for the Company's patent pending Plastic2Oil ("P2O") process. The report also contains a pro-forma financial assessment of the capital costs and earnings for the Plastic2Oil business model based on a scalable roll-out of three unit clusters.
SAIC is a FORTUNE 500® provider of scientific, engineering, systems integration and technical services and solutions.
SAIC was present at the Company's Plastic2Oil facility in Niagara Falls, NY over a 3-day period, April 25-27, 2012. The role of SAIC was to review the principal aspects of the Company's P2O process, including the basic engineering design, results from testing and operations at the Niagara Falls facility, and the commercial P2O processor, which is poised for roll-out at the first Rock-Tenn Company ("RockTenn") site.
During the 3-day audit, the P2O processor ran in continuous mode, with 121,318 pounds of throughput, producing 10,287 gallons of No. 6 Fuel and 4,269 gallons of Naphtha.
"This independent review is by far the most comprehensive that we've undergone to date," states John Bordynuik, CEO. "Furthermore, this is the first time we've received a pro-forma financial analysis from an independent third party, and we are extremely pleased with the positive conclusions."