Item 8.01 Other Events.On January 20, 2012, JBI, Inc. issued a press release to announce the final results of a stack test regarding its existing Plastic2Oil processor. A copy of the press release is attached as Exhibit 99.1 hereto.
THOROLD, Ontario, Jan. 9, 2012 (GLOBE NEWSWIRE) -- JBI, Inc. (the "Company") (OTCQB:JBII.PK) is pleased to announce that it closed agreements on January 6, 2012 for equity financing in the amount of US$2.795 million to build its Plastic2Oil ("P2O") technology.
Thirteen accredited individuals participated in this recent round of financing, which consisted of units purchased at $1.00 per unit. Each unit included a share of common stock and a warrant to purchase an additional one-half share at an exercise price of US$2.00 at any time for a period of 18 months.
"I think this is further validation of our business model by sophisticated investors who believe in the innovations and proprietary technology that JBI, Inc. has developed," commented John Bordynuik, CEO of the Company. "This financing will continue to support the operational build-out of our P2O processors at the Company's Niagara Falls facility and the initial site in our agreement with Rock-Tenn Company."
The Company believes that this new injection of capital will assist in increasing its production capacity more quickly in order to satisfy the recent fuel distribution agreements made with Indigo Energy Partners, LLC and XTR Energy Company Limited. It is yet another step in the development of the Company as it executes its vision of becoming a vertically integrated plastic recycling, fuel processing and fuel distribution company.
For more information on the details of this recent financing, please refer to the Company's Current Report on Form 8-K file on January 6, 2012 and posted on the Company's website at: www.plastic2oil.com.
4kids list of CC questions with my thoughts about some and some additions of my own in green...
1) what is mgmt's definition of commercial roll out pertaining to processors produced per month or Q in 2012 and what is the expectation for going forward 12 months (2013)
sent via PM (used with permission) and from posts in direct response to mine or containing CC questions >>
2) Will our current business partners ( Indigo, Xtr, and Coco) take all the output of 3 processors at maximum capacity?
3) Does Rock Tenn prefer to use all or a majority of the fuel output from the processors put at their facilities?
4) were the 2 30T kilns from China ever used (2&3 maybe)?
5) has JBI definitely decided to standardize with a 20T kiln size because of truck limitations for modular transportation to RKT sites?
My question, relative to questions 4&5: Has the pre-melt reactor (term used in the January 20th PR) eliminated the need for the rotating drum reactors completely?
6) One question which should be asked is when John plans to approach national media for a presentation of JBII.
7) What is JBII doing to combat the NSS/Manipulation of this stock. F/U: If management does not think the stock is being manipulated what is their explanation for the non-stop attacks? FWIW, I total understand if JB does not wish to expose his defensive tactics against manipulators.
8) Are there any other sites planned as JBII sites (no JV) like the NF facility?
9) Do they have the second RKT site on the drawing board yet?
10) whats the goal for quanitiy of p2o machines for 2012 (same as question 1)
11) JB's thoughts on PIPE's/Dividends/Spin-Off's/Buyouts/CopyCat Competition?
12) Have they truly completed the modularization of the entire system and are the fabricators and all involved ready at hand to fill orders?
13) With 2 & 3 up and running and the new building finished, what does JB think will be the company's biggest hurdle to overcome?
14) How hard is it to switch the machine over to procuce naptha for the massive deal with XTR? My understanding is that the best they can achieve for output of naphtha is 60% diesel, 40% naphtha.
15) Can we just dedicate a processor for each type? (see my answer to 14)
16) How do you define "cash flow positive" as used in the following, from the last 10Q?: "Management’s highest priority continues to be bringing processor #2 and #3 online so the Company can become cash flow positive."
18) Has the company secured the commitments from outside sources to provide enough waste plastic to allow 24/7 operations at the Niagara Falls facility on an ongoing basis?
19) Given that the processor can only achieve a maximum output of naphtha of 40% (60% diesel), how will the company achieve XTR's delivery requirements? Will XTR only be accepting road-ready naphtha, or will they also be accepting road-ready diesel?
20) Will we be given the opportunity to see the newly configured system(s) in its entirety?