JBI, Inc. (the "Company" or "JBI") (OTCQB: JBII), a clean energy
company that recycles waste plastic into liquid fuels, today
announced select initial third quarter fuel production metrics. In
addition, the Company announced that it has filed its Form 10-Q for
its second fiscal quarter of 2013 and that it has made changes in
the Company's executive team and Board of Directors.
JBI Files Second Quarter Results on Form
10-Q
The company has filed its Quarterly Report on Form 10-Q for the
second quarter 2013. As reported in the Form 10-Q, the Company
reported $128,003 in total revenues, a 28.7% decrease from the
second quarter of 2012. The Company reported $69,903 in fuel
revenues, a 29.5% decrease from the second quarter of 2012 and
costs of goods sold related to fuel revenues of $113,046, a 42.4%
increase from the second quarter of 2012. Net losses from
continuing operations for the quarter were $2,555,716, compared to
$4,028,390 in second quarter of 2012.
The Company produced 43,814 total gallons of fuel in the second
quarter of 2013, compared to 68,569 gallons produced in second
quarter 2012, a 36.1% decrease. Total cost per gallon was $2.43 per
gallon, compared to $1.23 per gallon for the second quarter 2012,
representing a 98.2% increase in cost per gallon. Readers are
encouraged to review the Company's Form 10-Q in its entirety,
including the section titled "Management's Discussion and Analysis
of Financial Condition and Results of Operations."
Select Third Quarter Fuel Production
Metrics
The Company is pleased to report that in its third fiscal
quarter through August 12, 2013, it produced approximately 82,618
gallons of fuel, with approximately 64,542 (78.12%) gallons
produced as in-spec diesel fuel and approximately 18,075 (21.88%)
gallons produced as naphtha.
"I'm extremely pleased with the consistency in which we've been
able to produce fuel to start the third quarter," stated JBI Chief
of Technology, John Bordynuik. "We are still running processor
three conservatively and are encouraged that the residue removal is
working as expected. Residue has been removed continuously during
the machine's startup run, which today will be on its 23rd
consecutive day." He continued, "We are looking forward to getting
to the point where we can begin to test significantly higher feed
rates on processor three."
Richard Heddle & Philip J. Bradley
Appointed to Board of Directors
Richard Heddle Appointed as CEO, Nicholas
Terranova Appointed as CFO
The Company is pleased to announce that on August 14, 2013,
Richard Heddle and Philip Bradley were appointed to the Board of
Directors of the Company. Mr. Heddle will serve as Chairman of the
Board and Chief Executive Officer of the Company. Nicholas
Terranova, the Company's Corporate Controller since 2011, has been
promoted to Chief Financial Officer of the Company.
Mr. Heddle is an accomplished entrepreneur with over 25 years of
executive business experience. Richard has owned, operated and
grown his namesake company, Heddle Marine Services, since 1987.
Heddle Marine Services is currently the largest marine repair firm
that operates floating dry docks on the Canadian side of the great
lakes. Richard has grown his company from a small startup
consisting of two individuals to a company that now employs over
60. He is both a Certified Millwright and Hoisting Engineer.
Richard has significant expertise in logistics, supply chain
analytics and managing production. Richard brings with him over 25
years of comprehensive experience in fabrication, engineering and
machinery.
Philip J. Bradley has over 35 years of executive accounting and
business experience. He worked as an Audit Manager and former
partner of Grant Thornton Canada, where he worked for 29 years.
Philip also served two three year terms in the Firm's National
Office, where he was responsible for recruitment, human resource
administration, as well as providing support services to the Firm's
professional practice offices. Philip then commenced practice as a
sole-proprietor and has been working privately as a Chartered
Professional Accountant for over 10 years. He is a member of the
Canadian Institute of Chartered Accountants, and the Institute of
Chartered Accountants of both Ontario and Nova Scotia. He received
a Bachelor of Business Administration from the University of Prince
Edward Island in 1975 and was admitted to the Institute of
Chartered Accountants of Nova Scotia in 1976.
Nicholas J. Terranova, CPA, is the former Corporate Controller
for JBI, Inc., holding that position for nearly two years. Nicholas
has extensive experience managing the finances and public finance
reporting at JBI. Prior to that, Nicholas was a former Senior
Accountant at Freed Maxick & Battaglia, a top 100 largest CPA
firm in the United States for over three years. During his tenure
at Freed, Maxick & Battaglia, Nicholas served on the firm's SEC
function, assisting with compliance testing and assessing the
effectiveness of internal controls over financial reporting.
Nicholas holds a B.S. in Accounting from Saint John Fisher
College.
"I'm extremely eager to start making a difference at JBI with
our new team," stated Richard Heddle, Chief Executive Officer,
"Having identified numerous areas of opportunity within the company
and with the momentum of processor three's initial production
behind us, I feel encouraged and confident about making JBI a
shareholder-first company focused on success."
Both Tony Bogolin and Matthew Ingham resigned from their
respective positions effective August 14, 2013.
$3 Million Secured Debt Commitment
Finally, on August 14, 2013, the Company entered into a binding
term sheet agreement with Richard Heddle to secure an investment in
the Company of $3 million. The investment will consist of the
purchase of a 12.5% Senior Secured Promissory Note ("Senior Debt")
secured by the property, plant and equipment and intellectual
property of the Company, that bears an interest rate of 12.5%. The
Senior Debt has a term of five years and has detachable warrants
valued at 120% of the closing price of the stock on the date prior
to funding.
"We're extremely pleased to announce that we've initially
secured what we believe to be financing that's favorable to our
shareholders," stated Nicholas Terranova, JBI Chief Financial
Officer. "We're confident going forward that this capital will
provide us with the funding necessary to begin to implement
immediate changes that our new executive team has identified."
The company plans to elaborate on the content of this press
release during its previously disclosed and scheduled conference
call at 11:00am EDT this morning. Details on the conference call
can be found on the company's website located at
www.plastic2oil.com.
A transcript of the conference call will be disclosed in a
timely fashion after the call and will be publicly available on the
website of the Securities and Exchange Commission at www.sec.gov
later today.
For further information about the Company's second fiscal
quarter 2013, including its financial results, readers of this
press release should review the Company's disclosures in its
Quarterly Report on Form 10-Q, which will be publicly available on
the website of the Securities and Exchange Commission at
www.sec.gov later today.
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,
as amended on April 30, 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 JBI, Inc. media@jbi.net or please visit the JBI, Inc.
Newsroom at www.plastic2oil.com
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