- Plastic2Oil has contracted to sell Plastic2Oil™ processors to EcoNavigation, LLC over the next three years
- Provided the terms of the contracts are met, the minimum gross proceeds to Plastic2Oil will be $15 million, as set forth in the Form 8-K filed January 8, 2015 with the SEC
- Plastic2Oil granted EcoNavigation a non-exclusive license of its technology and will receive a royalty of five percent of gross revenue from fuel sales
- Plastic2Oil will receive not less than $0.50 per pound for use of its proprietary catalyst
- Plastic2Oil will also provide on-going monitoring and maintenance services at agreed upon costs and rates
NIAGARA FALLS, N.Y., Jan. 12, 2015 (GLOBE NEWSWIRE) -- Plastic2Oil, Inc. (OTC:PTOI) (the "Company"), a clean energy company that manufactures and sells Plastic2Oil™ processors that convert waste plastic into liquid fuels and licenses related technology, is pleased to announce that on January 2, 2015, the Company entered into a series of contracts providing for the sale of six Plastic2Oil™ processors to EcoNavigation, LLC of Victor, New York ("EcoNavigation") over a three year period, and the non-exclusive license of technology and sale of its proprietary catalyst to EcoNavigation, as well as monitoring and maintenance.
The transaction with EcoNavigation represents an important milestone for the Company because its marks the Company's first sale of Plastic2Oil™ processors since the Company announced it was making a shift in business strategy from producer and seller of clean fuels to supplier of Plastic2Oil™ processors and related equipment, technology and services. Prior to the shift in strategy, the Company's Plastic2Oil™ processors had processed more than eight million pounds of waste and produced more than 700,000 gallons of fuel for sale to large industrial customers.
"We are very proud of this important achievement in the life of our Company. I feel that a successful deployment of our Plastic2Oil™ processors to EcoNavigation will validate management's decision to change course by focusing on processor sales and will set us on the course to profitability," said Rick Heddle, CEO of Plastic2Oil. "I want to take this opportunity to congratulate our entire team and to thank our loyal shareholders for their support of our business plan and their commitment to this important innovation that we have developed and commercialized."
Mark Ragus, CEO of EcoNavigation, said, "We are excited and proud to continue our commitment to the issue of environmental sustainability by licensing Plastic2Oil's unique technology. We sought out Plastic2Oil's process because we believe it is the most refined and sophisticated process of its type available."
"We are very grateful to EcoNavigation for selecting our Plastic2Oil™ solution and for its commitment to clean energy," said Mr. Heddle.
The Company also announced on January 2, 2015, that in light of the Company's achievement of this historical milestone, the Company's founder and Chief of Technology, Mr. John Bordynuik, has elected to resign. Management has requested that Mr. Bordynuik continue to support the Company as a consultant and discussions are ongoing. Mr. Bordynuik remains a significant shareholder of the Company.
"My goal in founding this Company was always to make a positive environmental impact while creating a community around our leading technology and corporate mission," said Mr. Bordynuik. "I'd like to extend my personal gratitude to everyone that has been involved with Plastic2Oil. I believe part of my job as founder was to get this Company to a 'jumping off point,' where it is well-positioned to reach the next level of commercialization. I look forward to continuing to provide consulting for the Company and any requested technical support or guidance."
"John Bordynuik has been the driving force and backbone of this Company for six years," said Mr. Heddle. "We are extraordinarily grateful for his contributions, and we look forward to continuing to have access to John's insights and ideas."
The Company believes that it is important to inform our shareholders about the reason and strategy behind entering into these agreements and information about the parties.
- The primary business of Plastic2Oil is to sell Plastic2Oil™ processors to sites that need to purchase processors to convert their waste into a valuable commodity. This eliminates disposal and transportation fees. The market demands for recycling solutions like this increase when oil prices drop so at this time there is a lot of activity from potential future sites and partners. For example, when oil prices drop significantly, scrap plastic markets tend to shrink and companies seeking to dispose of scrap plastics are faced with significant disposal costs. So while these companies might typically receive approximately a penny per pound for the sale of waste plastic in a normal oil market, and perhaps payment of shipping costs, now these companies are faced with paying disposal fees of as much as $90/ton plus $500 per truck load. Plastic is not dense so the shipping costs are high.
- The engineering firm that Plastic2Oil has been working with for over a year employs more than 1000 engineers and has significant experience in permitting, installing, and operating plants.
- The Company's business partner, EcoNavigation, has significant experience in the business component of a plastic-to-oil solution. They have expertise in financing, project financing, and project management, deal structuring, and presenting a full project as a package while interfacing with the engineering firm. EcoNavigation has the knowledge base to acquire hardware and detailed technical information from Plastic2Oil and work on problem solving of unique feedstock, conduct certain proprietary lab testing, or monitor processor operations for efficiency. Furthermore, EcoNavigation may become the owner of some plants or package solutions with other technology companies in joint ventures, and work with clients to integrate Plastic2Oil™ into their existing facilities.
- The combination of a seasoned business partner, a significant engineering firm and our Plastic2Oil™ technology provide the experience and support required to make an installation successful. Together, these three groups have the resources, knowledge and experience to work together to implement a solution at a client site.
Plastic2Oil is a clean energy company that is focused on selling its Plastic2Oil™ processors and catalyst and licensing its proprietary plastic-to-fuel solution to green energy, recycling and waste companies. In spec, usable fuels including off-road diesel from our process help divert waste plastic from landfills. For further information, please visit www.plastic2oil.com.
EcoNavigation is a technology integrator that focuses on finding and implementing the latest green technologies to help solve some of the world's greatest environmental challenges. For further information, contact us at firstname.lastname@example.org
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 Plastic2Oil, and members of its management as well as the assumptions on which such statements are based. 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) Plastic2Oil has a history of net losses, and may not be profitable in the future; (2) Plastic2Oil 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) Plastic2Oil 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 June 4, 2014, 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: Plastic2Oil, Inc. email@example.com 716-278-0015