-- 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
-- Plastic2Oil will also provide on-going monitoring and maintenance
services at agreed upon costs and rates
NIAGARA FALLS, N.Y. – 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 email@example.com