FWIW...
Plastic2Oil CEO Provides Update to Shareholders
NIAGARA FALLS, NY -- (Marketwired) -- 05/01/17 -- Plastic2Oil Inc. (OTCQB: PTOI):
To our valued Plastic2Oil (P2O) shareholders:
In our previous letter to shareholders, we discussed reducing costs, securing additional financing, and developing key strategic partnerships. I am pleased to provide you with this update on these same themes.
Reducing costs and improving our cash position.
On March 31, 2017, we closed on the sale of our idle office building in Thorold, Canada. The net proceeds from the sale and the resulting reduction in monthly operating costs will provide working capital to sustain P2O operations over the next two quarters. We are also continuing to seek a lease customer for our Canadian blending facility, although it should be noted that closing on such a lease will very likely require that oil prices rebound and remain above $50 per barrel.
Negotiating a key strategic partnership.
In August 2016, we announced the signing of a memorandum of understanding (MOU) with a potential partner regarding the licensing of our technology and a potential sale of processor units. On March 26, 2017, the parties agreed to extend the term of the MOU to May 24, 2017. There can be no guarantee that a definitive agreement will be executed prior to expiration of the extended term of the MOU.
Robin Curtis, a pioneer in the implementation of plastic-to-fuel technology and a participant in the proposed partnership, recently noted: "The market opportunity for plastic to fuel is even more promising today than it was years ago. It appears evident that the Plastic2Oil technology solved the problems that had been encountered in our previous attempts to implement plastic to fuel technology. We now look forward to the opportunity to implement Plastic2Oil technology."
We are still in the process of negotiating a definitive agreement. If consummated, it is anticipated that the first site would house two P2O processors, and could eventually lead to deployment of P2O processors in 15 to 20 similar facilities. The initial purchase order will be for the two units currently in our inventory. Final assembly and testing of the units prior to shipping will require approximately six months from signing of the purchase order. Instrumentation and other necessary equipment will be secured prior to the shipping date. Several additional months will be required for installation after the units have been shipped.
We look forward to updating our shareholders upon the signing of a definitive agreement.
Other News.
Glenny and Maskell (Canadian insurance broker) settled on a lawsuit filed by Plastic2Oil, Inc., on May 25, 2012 at the Ontario Superior Court of Justice, seeking damages consisting of the costs of defense and any damages that may be awarded against the Company, former CEO John Bordynuik, and former CFO Ron Baldwin in the Class Action and in the SEC Action. The case was settled in the US with ACE (Insurance carrier) in or about May 2013, pursuant to what is known as a "Mary Carter" (confidential) settlement. The net proceeds from this settlement will be used for working capital to sustain P2O operations over the next two quarters.
Looking Ahead.
The above developments are part of our ongoing and successful transformation of the firm's financial profile by proactively managing our cost structure, judiciously managing our capital, and significantly adjusting both compensation levels and fixed expenses. In another important development, we look forward to strengthening our governance structure by adding three new outside Directors to our Board in the near future.
I want to offer my personal thanks for the extremely valuable contributions made by our employees, management, Board of Directors, and investors. I also look forward to seeing you and sharing further developments at our 2017 annual stockholders meeting, planned for late this year. Formal notice and other details of the meeting will be presented in our proxy statement, which will be made available to our stockholders and filed with the Securities and Exchange Commission. Thank you for your continued support.
Richard Heddle
Plastic2Oil, Inc., CEO & President
About the Company
