JBI, Inc. Announces Cost Reduction Measures
July 16 2013 - 9:00AM
Marketwired
JBI, Inc. (the "Company" or "JBI") (OTCQB: JBII), a clean energy
company that recycles waste plastic into liquid fuels, today
announced that it has taken the necessary steps to significantly
reduce costs as part of its ongoing plans to improve its operating
results.
The Company has completed a reduction in force of approximately
25%, involving 15 employees whose positions will be eliminated or
their duties reassigned as part of an overall plan to reduce the
Company's cost structure. The Company estimates it will incur
approximately $40,000 in total restructuring expenses primarily
consisting of severance and other employee-related costs. Total
annual cost savings, including these and other reductions are
expected to be approximately $1.3 million.
JBI's President and CEO, Tony Bogolin stated, "It is imperative
that we control our costs as we ramp up production and revenue with
an eye towards improving our operating results. These reductions
were an important step for us."
In addition, in an effort to more closely align their interests
with those of the Company's shareowners, Tony Bogolin, Chief
Executive Officer, Matthew Ingham, Chief Financial Officer and John
Bordynuik, Chief of Technology, have all agreed to forego their
annual performance bonuses under their respective employment
agreements. This is a cost savings of approximately $32,000.
For further information about JBI, Inc., including its financial
results, readers of this press release should review the Company's
disclosures in its Quarterly Report on Form 10-Q, which is publicly
available on the website of the Securities and Exchange Commission
at www.sec.gov.
About JBI, Inc.
JBI, Inc. is a clean energy company that recycles waste plastic
into liquid fuels. JBI's proprietary Plastic2Oil® technology can
deliver economic and environmental benefits by replacing refined
fuels and diverting waste plastic from landfills. For further
information, please visit www.plastic2oil.com.
Forward Looking Statements
This press release contains statements, which may constitute
"forward looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act. The Private
Securities Litigation Reform Act of 1995 (PSLRA) implemented
several significant substantive changes affecting certain cases
brought under the federal securities laws, including changes
related to pleading, discovery, liability, class representation and
awards fees as of 1995. Those statements include statements
regarding the intent, belief or current expectations of JBI, and
members of its management as well as the assumptions on which such
statements are based, including the expected timing of the
Company's Form 10-K, execution of the proposed agreements described
above and consummation of the transactions contemplated by such
agreements. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. Such risks include, but are not limited to: (1) JBI has
a history of net losses, and may not be profitable in the future;
(2) JBI may not be able to obtain necessary licenses, rights and
permits required to develop or operate our Plastic2Oil business,
and may encounter environmental or occupational, safety and health
conditions or requirements that would adversely affect its
business; and (3) JBI may experience delays in the commercial
operations of its Plastic2Oil machines and there is no assurance
that they can be operated profitably. For a more detailed
discussion of such risks and other factors, see the Company's
Annual Report on Form 10-K, filed with the SEC on March 15, 2013
and its other SEC filings. The Company undertakes no obligation to
update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.
CONTACT Chris Irons Corporate Communications &
Investor Relations Manager 716.471.5995 ir@jbi.net MEDIA
INQUIRIES media@jbi.net or please visit the JBI, Inc. Newsroom
at www.plastic2oil.com
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