JBI, Inc. Receives $1 Million From Debt Financing and Provides Processor No. Three Operations Update
August 30 2013 - 7:30AM
Marketwired
JBI, Inc. (the "Company" or "JBI") (OTCQB: JBII), a clean energy
company that recycles waste plastic into liquid fuels, announced
today the receipt of $1 million in proceeds from the sale of a
secured promissory note and a successful first cycling of its
flagship third processor leading to its continued operation.
On August 29th, the Company sold to Mr. Richard Heddle, the
Company's President, Chief Executive Officer and a director, a $1
million 12% secured promissory note, together with a five-year
warrant to purchase up to one million shares of the Company's
common stock at an exercise price of $0.54 per share. Gross
proceeds to the company were $1 million. The Company had previously
reported the entry into a term sheet agreement with Mr. Heddle
concerning the note financing. Further details regarding the
financing can be found in the Company's Form 8-K filed with the
Securities and Exchange Commission.
"This financing is a crucial bridge for our Company, as we
continue to move forward with our new executive team and implement
strategies for cost reduction, while also focusing on building fuel
production momentum," stated Chief Financial Officer Nicholas
Terranova.
As previously planned, the Company cooled and cycled processor
number three, its recently commissioned Plastic2Oil® processor, for
approximately six days to inspect the machine internally, perform
routine safety checks, and make minor adjustments to the machine's
flue gas piping. Processor number three's initial production run
lasted a total of 30 days, until the machine was cooled down
intentionally.
"The speed in which we were able to cycle processor number three
was very encouraging. We believe the technology behind our third
processor is absolutely world-class. With our previously disclosed
spending cuts and production momentum, we continue to progress with
an eye on moving this company closer to a cash flow positive
state," stated Richard Heddle, JBI's Chief Executive Officer.
JBI Chief of Technology John Bordynuik stated, "Processor number
three, as expected, had very mild amounts of coking throughout the
pre-melt and the residue removal system has been operating as we
had hoped. The resultant mild coking in the pre-melt was expected,
due to our flue gas piping needing to be slightly adjusted. The
reactor and residue kilns were both in excellent condition during
our visual inspection. In addition, the adjustments that were made
to the machine's flue gas piping have helped the machine achieve
ideal heat profiling, which is precisely what we were striving for
during this period of downtime. Our next step for processor number
three is to work on maximizing feed rates."
For further information about JBI, Inc., readers of this press
release should review the Company's disclosures in its periodic
reports, which are 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,
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 media@jbi.net or please visit the JBI, Inc. Newsroom
at www.plastic2oil.com
Plastic2Oil (PK) (USOTC:PTOI)
Historical Stock Chart
From May 2024 to Jun 2024
Plastic2Oil (PK) (USOTC:PTOI)
Historical Stock Chart
From Jun 2023 to Jun 2024