Monday, November 23, 2009 9:00:21 PM
JBII Complete Conference Call:
Q&A Session for JBI Conference Call & Presentation
Session number: 664952426
Date: Monday, November 23, 2009
Starting time: 2:34 PM
** important** Webex has a 200 character limitation for Q&A so some were answered in the chat window.
(from chat window):
We currently have a back log of tapes, and have received new orders from Oil and Gas.
"Do you expect the 3rd party validation of the P2O to be complete this year?" That is possible.
Samples of fuels were created from various plastic feedstocks and were tested (ASTM D 5453) and confirmed a sulphur concentration less than 8.4 ppm (parts per million). Additionally the water and sediment tests (ASTM D 1796) confirm that its fuel contained less than 0.005% water and sediment. Density tests also placed the fuel in the gasoline range.
"What is the estimated cost to produce 1 barrel of fuel in terms of just the operational costs?" This is difficult to answer as we are being paid to accept the feedstock, generate excess energy and sell the output. The cost is less than $10/barrel if we load up our business plan with costs.
Thanks again all for connecting today and for your questions. We are obviously very excited about P2O and the large processor is our highest priority. We will inform everyone about its status when validation is complete.
Yes, the processor will accept unwashed plastics. It will reverse from time to time to clean out anything that entered the system that is not plastic.
Our tape reading objectives: We have expanded our tape business to become a full-service data migration company. We can now scan/read tapes,fiche,film, paper, optical media and carts as a one-stop shop for data migration. We then provide our clients with a solution to access their data (new and old) through a web interface. Our systems support IBM 7094 (1961), UNIVAC, through 180s systems to present. (cutoff) We currently have a huge backlog of tapes/carts to read >100k.
Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information. As well, for every statement we submit in a Q, we must be prepared to answer questions from the SEC or other regulatory bodies. This is very expensive and very time consuming - our focus is to launch P2O at this time. We can back our statements but are still growing and do not have the internal infrastructure to dedicate to answering regulatory body questions in volume. (cutoff) Therefore, we will file information that provides detail about the company but not so much detail that we spend our days answering questions. Some companies receive in excess of hundreds of comments and it can take much time to scan in and compile documents to answer one question.
________________________________________________________________
Q: Hey Jon, I'm here with you!
A: This is from John....Thank you for all the kind words. Things are going very well and I'm sure our shareholders will be very pleased with our process. We have been able to acquire 3 entities and validate P2O in one quarter.
________________________________________________________________
Q: Can you give any more of a report on the progress of the validation process?
A: All questions about the large processor will be answered in a press release when we receive third party validation and test results.
________________________________________________________________
Q: Has the P2O process been validated in the field?
A: P2O is being assembled and tested now.
________________________________________________________________
Q: can you shed more light on the first big production P2O machine being assembled.. any test results, yet? Also, how are the 25 JVs coming along?
A: P2O process is currently undergoing third party validation. We can not discuss the PIPE in an open forum.
________________________________________________________________
Q: Thanks, good presentation. Dave C.
______________________________________________________________
Q: also are you able to give any estimates on the tape-reading pipeline .. revenue projections and/or objectives?
A: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q.
In addition, a MD&A has to be prepared based on the informat (cut off)ion. As well, for every statement you type in a Q, be prepared to answer questions from the SEC or other regulatory bodies. They are expensive and very time consuming.
chat from John:
Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information. As well, for every statement we submit in a Q, we must be prepared to answer questions from the SEC or other regulatory bodies. This is very expensive and very time consuming - our focus is to launch P2O at this time. We can back our statements but are still growing and do not have the internal infrastructure to dedicate to answering regulatory body questions in volume. (cutoff) Therefore, we will file information that provides detail about the company but not so much detail that we spend our days answering questions. Some companies receive in excess of hundreds of comments and it can take much time to scan in and compile documents to answer one question.
________________________________________________________________
Q: Is catalyst protected or proprietary in nature and if so does JB owe any royalties etc to the creator of the original work with the catalyst.
A: No JBI does not owe any royalties for the catalyst.
________________________________________________________________
Q: What % revenue/profit do you anticipate from each of the businesses?
A: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information
See above: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information. As well, every statement we submit in a Q, we must be prepared to answer questions from the SEC or other regulatory bodies. This is very expensive and very time consuming - our focus is to launch P2O at this time. We can back our statements but are still growing and do not have the internal infrastructure to dedicate to answering regulatory body questions in volume. (cutoff) Some companies receive in excess of hundreds of comments and it can take much time to scan in and compile documents to support one question.
_________________________________________________________
Q: do you continue to receive new orders to read data - what do you charge for this service. Can the tapes be used in the P2O recovery?
A: Yes we are currently receiving new orders. We charge $22 per tape. The tapes can be used in the P2O process.
________________________________________________________________
Q: How many P2O sites do you anticipate per state?
A: That depends on many factors such as the feedstock in that state, and interested JV parties....etc.
________________________________________________________________
Q: Hello John
________________________________________________________________
Q: What is current status of large scale P2O Processor? Is is producienoil yet?
A: The current P2O processor is being assembled and tested by a third party.
________________________________________________________________
Q: John
________________________________________________________________
Q: has your company shown your facility to stock brokerage firms? What have been the reactions?
A: John has been contacted and met with several different funds, however we can not legally discuss the results of these meetings until filed with the SEC.
________________________________________________________________
Q: Has the fuel from the P2O process been tested?
A: Yes it has been tested by a national lab used by refineries to test crude prior to acceptance.
________________________________________________________________
Q: When do you expect the third party validation to occur?
A: It is already before the scientists eyes.
________________________________________________________________
Q: Im sorry if this was discussed during the presentation but is there a rough timeframe estimate when the P2O will be assembled and tested? Thanks
A: P2O is being assembled and tested now. An independent state certified lab is doing all the third party validation to expedite the roll out.
________________________________________________________________
Q: Will Patit products be released for retail in the near future
A: Management is currently exploring retail options for Pak-It.
________________________________________________________________
Q: Is there also a mobile processor in process? If so, when wil it be available to begin traveling?
A: Yes there is. There are two mobile options at this time.
________________________________________________________________
Q: Can anymore color be provided on how the oil tanker will be used?
A: Currently any further information about the oil tanker is a corporate trade secret.
________________________________________________________________
Q: Does the company have an estimate for how long it will take to order, recieve, install a P2O site and get operational once the franchise application has been approved and completed?
A: It is estimated at 60 to 90 days.
________________________________________________________________
Q: Can you discuss the progress of the 25 P2O JVs being established?
A: We can not discuss the PIPE in a public forum.
________________________________________________________________
Q: Can you share your short/mid/long-term revenue goals for the tape-reading business and for Javaco?
A: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the informat (cutoff – answered in length in chat)
________________________________________________________________
Q: Are you looking at any local (U.S. or Canada) sources for fabrication of processor, or will you continue to acquire from China?
A: We are considering all sources for fabrication.
A: We will being using sources from China and the US to manufacture the P2O processors.
________________________________________________________________
Q: Sugestion: I have tried the Pak-it products...very impressed. For household use in the retail market a lemon scent Pak-it product would sell well.
A: Thank you for the suggestion.
________________________________________________________________
Q: what is the single major growth strategy for Pak-it to grow to $50M?
A: We plan to focus on national retailers and BSCs with our two-prong strategy: the Pakit dilution system coupled with a logistics delivery system. We're the only company that offers this solution, and major retailers like Home Depot are seeing the value.
________________________________________________________________
Q: can you comment on the authorised shares increase?
A: The comon shares were increased on the advice of our securities lawyers. There was (and is) a concern that when P2O is running shortly that we would need to access capital quickly to launch a major rollout.
A: The PIPE would use most of the remaining common shares at the time. As well, the preferred was not available and an increase would take almost a month. In any event, a portion of my shares are being returned to the treasury when preferred is issued.
A: The shareholders WILL NOT see any dilution as a result of the 3 acquisitions and the financing from when I purchased the company with 63.7M shares outstanding.
________________________________________________________________
Q: How fast do you expect to find buyers for the fuel? Or do you already have potential buyers lined up?
A: Refineries will take as much as we can produce. This is not a barrier or challenge in any way. Our fuel is better than what they receive from the wells as it is "prerefined".
________________________________________________________________
Q: What is the synergy for Pak-It and P2O?
A: Pak-It has a bulk processing facility. PakIt (DCL) will produce the catalyst in a sealed plastic container that will be loaded into the reactor. As the reactor warms up, the plastic container will melt and release the catalyst.
________________________________________________________________
Q: Does the catalyst in P2O act to assist in the faster breakdown of the plastic into gasses or in the recombination of the gas products into oil? How do you account for the difference in recovery? i.e. why do we recover 99% and others 40%?
A: Yes, the catalyst greatly expedites the cracking of the plastic. As well, it allows us to select on a tight curve what hydrocarbon we wish to produce. This is accomplished by changing the ratio of the chemicals in the catalyst.
A: Most other methods must(ch) heat the plastic much higher and poor conversion takes place. The gases are condensed to fuel when passed through the condenser.
________________________________________________________________
Q: John, How do you intend to maintain control of the company given the very large potential dilution of shares from 70M authorized to 150M?
A: 150M are authorized, not issued. When the dust settles, the common share outstanding will be lower than now, I will have control through preferred stock (with piggy back rights for common shareholders). There is no dilution of shares.
________________________________________________________________
Q: What determines the price you will get for the oil you produce?
A: WTI (West Texas Intermediate) price less $3. The refinery picks up the fuel.
________________________________________________________________
Q: Can the same Processor be used for both plastic and rubber tires? Is the catalyst the same? Can plastic and rubber tires be put in the processor in the same batch?
A: I would not mix the two. Tires have cord, wire and carbon black powder. Our processor deals with this. We could mix the two but I don't see the value.
________________________________________________________________
Q: Did you really say 100,000,000 barrels of oil by 2020?
A: Yes. Consider that a P2O site will be producing a minimum of 20,000 liters per day (per two processors). Our continuous feedstock rate is dependent on not saturating the condensers.
________________________________________________________________
Q: How long does a "batch" of plastic take to convert? How much plastic can be converted in a 24 day? Can the P2O be run 24/7?
A: We plan to do a minimum of 20 tons per day per site. We are also developing a continuous feed function that could enable 24/7 production.
A: Yes it can. We have released very conservative numbers until we can prove it with third party validation. We can breakdown large volumes of plastic with our catalyst in less than an hour. In a continuous process, our feedrate is governed by the
A: rate at which a condenser can handle.
________________________________________________________________
Q: any idea of the timeframe to move to NASDAQ? Can this happen in 2010?
A: We have to meet the NASDAQ requirements for number of shareholders, revenues, and share price. We are just waiting to satisfy the minimum share price.
________________________________________________________________
Q: Are ther plans for smaller P2O for smaller communities?
A: Small communities consume a lot of plastic. We need several P2O sites in Niagara alone. There are some studies on the net relating to plastic consumption in a small community in the UK. I'll forward a link later.
________________________________________________________________
Q: to produce 100 million barrels/year would require JBI to only 591 processors running 365 days a year. This would translate into only 4 million tons of plastic. Isn't this a very conservative number? Waste plastic in the US is estimated to be 15 m tons/year
A: In our estimates we assume that 20 tons of plastic will produce 110 barrels of oil.
________________________________________________________________
Q: Are you planning to do a reverse split in order to meet the minimum shareprice to apply for NASDAQ?
A: No way. We'll get there on revenue and earnings. It's the only way to do it right.
________________________________________________________________
Q: Can't the oil be sold directly to large users?
A: Yes it can but we have a customer willing to pick it up all day long at aprox $74/barrel at today’s price.
________________________________________________________________
Q: What share price does Nasdaq require? How many OS will there be after the preffered issue?
A: $5/share. The OS will be below 50M. Based on a P2O machine producing in excess of $2M/profit/year it is not difficult to achieve even if we trade at a conservative multiple.
________________________________________________________________
Q: How is the feedstock put into the hopper? Conveyor system?
A: A conveyor. It's a trade secret how the plastic enters the reactor.
________________________________________________________________
Q: Do you care to make any forward-looking statements regarding revenue projections for all combined entities for 1H2010?
A: That will depend totally on P2O. It is our home run and the numbers are attractive. Negative cost in, 15% of weight converted to gas to run the system, paid for the oil output. It's a great growth model. You'll get numbers when P2O is validated.
________________________________________________________________
Q: can he feedstock hopper be loading whiile the processor is converting?
A: The. The processor is continuous or batch. We can load plastic into the system as long as the condensers are not overloaded. The system will feed plastic into the reactor. The feedstock enters in an oxygen free environment.
________________________________________________________________
Q: What operating permits are necessary for the P2O i.e. air quality, combustibles, etc
A: That depends on country, state and even down to the city level. We are focused on collecting and documenting as much data as possible for use in other areas.
________________________________________________________________
Q: Much has been written about the large plastic patch and environmental hazard in the ocean! Do you envision JBI eventuallyattacking this problem which would result in positive global press?
A: Well, we don't hire stock promoters so we have to look to work on projects that will bring attention to the company. In the end, the volume of our stock will depend on the number of people that know about it.
________________________________________________________________
Q: Is it one hopper full per batch?
A: No, the hopper will be topped up as the processor operates.
________________________________________________________________
Q: do you have to pre-shred the feestock? How big/small is the mouth of the processor?
A: The mouth of the processor is 16 inches.
________________________________________________________________
Q: would love to "hear" from the team in the next conf call (i.e voice/video). Good luck with the next few weeks!!!!
A: We will all be on the line next time. We just completed 3 acquisitions, a Q, large P2O, and managing the growth of the tape business and making PakIt in Canada. Everyone is working very hard. We will have a conference call with all when big P2O is done.
________________________________________________________________
Q: Does the feedstock(tires and plastic) need to be shredded prior to entering the hopper? or does the processor break it down to fit into the 16" opening?
A: You could load the processor with a laser printer and it would convert the plastic components to oil. The catalyst is a liquid and the heat transfer is very quick. Shredding is nice to expedite the process further.
________________________________________________________________
Q: Thanks for taking the time for this call -- many shareholders are very pleased that you announced it, myself included!
_____________________________________________________________
Q: Thank you for your presentation
z
Q&A Session for JBI Conference Call & Presentation
Session number: 664952426
Date: Monday, November 23, 2009
Starting time: 2:34 PM
** important** Webex has a 200 character limitation for Q&A so some were answered in the chat window.
(from chat window):
We currently have a back log of tapes, and have received new orders from Oil and Gas.
"Do you expect the 3rd party validation of the P2O to be complete this year?" That is possible.
Samples of fuels were created from various plastic feedstocks and were tested (ASTM D 5453) and confirmed a sulphur concentration less than 8.4 ppm (parts per million). Additionally the water and sediment tests (ASTM D 1796) confirm that its fuel contained less than 0.005% water and sediment. Density tests also placed the fuel in the gasoline range.
"What is the estimated cost to produce 1 barrel of fuel in terms of just the operational costs?" This is difficult to answer as we are being paid to accept the feedstock, generate excess energy and sell the output. The cost is less than $10/barrel if we load up our business plan with costs.
Thanks again all for connecting today and for your questions. We are obviously very excited about P2O and the large processor is our highest priority. We will inform everyone about its status when validation is complete.
Yes, the processor will accept unwashed plastics. It will reverse from time to time to clean out anything that entered the system that is not plastic.
Our tape reading objectives: We have expanded our tape business to become a full-service data migration company. We can now scan/read tapes,fiche,film, paper, optical media and carts as a one-stop shop for data migration. We then provide our clients with a solution to access their data (new and old) through a web interface. Our systems support IBM 7094 (1961), UNIVAC, through 180s systems to present. (cutoff) We currently have a huge backlog of tapes/carts to read >100k.
Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information. As well, for every statement we submit in a Q, we must be prepared to answer questions from the SEC or other regulatory bodies. This is very expensive and very time consuming - our focus is to launch P2O at this time. We can back our statements but are still growing and do not have the internal infrastructure to dedicate to answering regulatory body questions in volume. (cutoff) Therefore, we will file information that provides detail about the company but not so much detail that we spend our days answering questions. Some companies receive in excess of hundreds of comments and it can take much time to scan in and compile documents to answer one question.
________________________________________________________________
Q: Hey Jon, I'm here with you!
A: This is from John....Thank you for all the kind words. Things are going very well and I'm sure our shareholders will be very pleased with our process. We have been able to acquire 3 entities and validate P2O in one quarter.
________________________________________________________________
Q: Can you give any more of a report on the progress of the validation process?
A: All questions about the large processor will be answered in a press release when we receive third party validation and test results.
________________________________________________________________
Q: Has the P2O process been validated in the field?
A: P2O is being assembled and tested now.
________________________________________________________________
Q: can you shed more light on the first big production P2O machine being assembled.. any test results, yet? Also, how are the 25 JVs coming along?
A: P2O process is currently undergoing third party validation. We can not discuss the PIPE in an open forum.
________________________________________________________________
Q: Thanks, good presentation. Dave C.
______________________________________________________________
Q: also are you able to give any estimates on the tape-reading pipeline .. revenue projections and/or objectives?
A: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q.
In addition, a MD&A has to be prepared based on the informat (cut off)ion. As well, for every statement you type in a Q, be prepared to answer questions from the SEC or other regulatory bodies. They are expensive and very time consuming.
chat from John:
Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information. As well, for every statement we submit in a Q, we must be prepared to answer questions from the SEC or other regulatory bodies. This is very expensive and very time consuming - our focus is to launch P2O at this time. We can back our statements but are still growing and do not have the internal infrastructure to dedicate to answering regulatory body questions in volume. (cutoff) Therefore, we will file information that provides detail about the company but not so much detail that we spend our days answering questions. Some companies receive in excess of hundreds of comments and it can take much time to scan in and compile documents to answer one question.
________________________________________________________________
Q: Is catalyst protected or proprietary in nature and if so does JB owe any royalties etc to the creator of the original work with the catalyst.
A: No JBI does not owe any royalties for the catalyst.
________________________________________________________________
Q: What % revenue/profit do you anticipate from each of the businesses?
A: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information
See above: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the information. As well, every statement we submit in a Q, we must be prepared to answer questions from the SEC or other regulatory bodies. This is very expensive and very time consuming - our focus is to launch P2O at this time. We can back our statements but are still growing and do not have the internal infrastructure to dedicate to answering regulatory body questions in volume. (cutoff) Some companies receive in excess of hundreds of comments and it can take much time to scan in and compile documents to support one question.
_________________________________________________________
Q: do you continue to receive new orders to read data - what do you charge for this service. Can the tapes be used in the P2O recovery?
A: Yes we are currently receiving new orders. We charge $22 per tape. The tapes can be used in the P2O process.
________________________________________________________________
Q: How many P2O sites do you anticipate per state?
A: That depends on many factors such as the feedstock in that state, and interested JV parties....etc.
________________________________________________________________
Q: Hello John
________________________________________________________________
Q: What is current status of large scale P2O Processor? Is is producienoil yet?
A: The current P2O processor is being assembled and tested by a third party.
________________________________________________________________
Q: John
________________________________________________________________
Q: has your company shown your facility to stock brokerage firms? What have been the reactions?
A: John has been contacted and met with several different funds, however we can not legally discuss the results of these meetings until filed with the SEC.
________________________________________________________________
Q: Has the fuel from the P2O process been tested?
A: Yes it has been tested by a national lab used by refineries to test crude prior to acceptance.
________________________________________________________________
Q: When do you expect the third party validation to occur?
A: It is already before the scientists eyes.
________________________________________________________________
Q: Im sorry if this was discussed during the presentation but is there a rough timeframe estimate when the P2O will be assembled and tested? Thanks
A: P2O is being assembled and tested now. An independent state certified lab is doing all the third party validation to expedite the roll out.
________________________________________________________________
Q: Will Patit products be released for retail in the near future
A: Management is currently exploring retail options for Pak-It.
________________________________________________________________
Q: Is there also a mobile processor in process? If so, when wil it be available to begin traveling?
A: Yes there is. There are two mobile options at this time.
________________________________________________________________
Q: Can anymore color be provided on how the oil tanker will be used?
A: Currently any further information about the oil tanker is a corporate trade secret.
________________________________________________________________
Q: Does the company have an estimate for how long it will take to order, recieve, install a P2O site and get operational once the franchise application has been approved and completed?
A: It is estimated at 60 to 90 days.
________________________________________________________________
Q: Can you discuss the progress of the 25 P2O JVs being established?
A: We can not discuss the PIPE in a public forum.
________________________________________________________________
Q: Can you share your short/mid/long-term revenue goals for the tape-reading business and for Javaco?
A: Breakdown of Revenue: We did not break the statements out for a number of reasons. It is very difficult to acquire 3 entities in one quarter much less consolidate all of the information into a Q. In addition, a MD&A has to be prepared based on the informat (cutoff – answered in length in chat)
________________________________________________________________
Q: Are you looking at any local (U.S. or Canada) sources for fabrication of processor, or will you continue to acquire from China?
A: We are considering all sources for fabrication.
A: We will being using sources from China and the US to manufacture the P2O processors.
________________________________________________________________
Q: Sugestion: I have tried the Pak-it products...very impressed. For household use in the retail market a lemon scent Pak-it product would sell well.
A: Thank you for the suggestion.
________________________________________________________________
Q: what is the single major growth strategy for Pak-it to grow to $50M?
A: We plan to focus on national retailers and BSCs with our two-prong strategy: the Pakit dilution system coupled with a logistics delivery system. We're the only company that offers this solution, and major retailers like Home Depot are seeing the value.
________________________________________________________________
Q: can you comment on the authorised shares increase?
A: The comon shares were increased on the advice of our securities lawyers. There was (and is) a concern that when P2O is running shortly that we would need to access capital quickly to launch a major rollout.
A: The PIPE would use most of the remaining common shares at the time. As well, the preferred was not available and an increase would take almost a month. In any event, a portion of my shares are being returned to the treasury when preferred is issued.
A: The shareholders WILL NOT see any dilution as a result of the 3 acquisitions and the financing from when I purchased the company with 63.7M shares outstanding.
________________________________________________________________
Q: How fast do you expect to find buyers for the fuel? Or do you already have potential buyers lined up?
A: Refineries will take as much as we can produce. This is not a barrier or challenge in any way. Our fuel is better than what they receive from the wells as it is "prerefined".
________________________________________________________________
Q: What is the synergy for Pak-It and P2O?
A: Pak-It has a bulk processing facility. PakIt (DCL) will produce the catalyst in a sealed plastic container that will be loaded into the reactor. As the reactor warms up, the plastic container will melt and release the catalyst.
________________________________________________________________
Q: Does the catalyst in P2O act to assist in the faster breakdown of the plastic into gasses or in the recombination of the gas products into oil? How do you account for the difference in recovery? i.e. why do we recover 99% and others 40%?
A: Yes, the catalyst greatly expedites the cracking of the plastic. As well, it allows us to select on a tight curve what hydrocarbon we wish to produce. This is accomplished by changing the ratio of the chemicals in the catalyst.
A: Most other methods must(ch) heat the plastic much higher and poor conversion takes place. The gases are condensed to fuel when passed through the condenser.
________________________________________________________________
Q: John, How do you intend to maintain control of the company given the very large potential dilution of shares from 70M authorized to 150M?
A: 150M are authorized, not issued. When the dust settles, the common share outstanding will be lower than now, I will have control through preferred stock (with piggy back rights for common shareholders). There is no dilution of shares.
________________________________________________________________
Q: What determines the price you will get for the oil you produce?
A: WTI (West Texas Intermediate) price less $3. The refinery picks up the fuel.
________________________________________________________________
Q: Can the same Processor be used for both plastic and rubber tires? Is the catalyst the same? Can plastic and rubber tires be put in the processor in the same batch?
A: I would not mix the two. Tires have cord, wire and carbon black powder. Our processor deals with this. We could mix the two but I don't see the value.
________________________________________________________________
Q: Did you really say 100,000,000 barrels of oil by 2020?
A: Yes. Consider that a P2O site will be producing a minimum of 20,000 liters per day (per two processors). Our continuous feedstock rate is dependent on not saturating the condensers.
________________________________________________________________
Q: How long does a "batch" of plastic take to convert? How much plastic can be converted in a 24 day? Can the P2O be run 24/7?
A: We plan to do a minimum of 20 tons per day per site. We are also developing a continuous feed function that could enable 24/7 production.
A: Yes it can. We have released very conservative numbers until we can prove it with third party validation. We can breakdown large volumes of plastic with our catalyst in less than an hour. In a continuous process, our feedrate is governed by the
A: rate at which a condenser can handle.
________________________________________________________________
Q: any idea of the timeframe to move to NASDAQ? Can this happen in 2010?
A: We have to meet the NASDAQ requirements for number of shareholders, revenues, and share price. We are just waiting to satisfy the minimum share price.
________________________________________________________________
Q: Are ther plans for smaller P2O for smaller communities?
A: Small communities consume a lot of plastic. We need several P2O sites in Niagara alone. There are some studies on the net relating to plastic consumption in a small community in the UK. I'll forward a link later.
________________________________________________________________
Q: to produce 100 million barrels/year would require JBI to only 591 processors running 365 days a year. This would translate into only 4 million tons of plastic. Isn't this a very conservative number? Waste plastic in the US is estimated to be 15 m tons/year
A: In our estimates we assume that 20 tons of plastic will produce 110 barrels of oil.
________________________________________________________________
Q: Are you planning to do a reverse split in order to meet the minimum shareprice to apply for NASDAQ?
A: No way. We'll get there on revenue and earnings. It's the only way to do it right.
________________________________________________________________
Q: Can't the oil be sold directly to large users?
A: Yes it can but we have a customer willing to pick it up all day long at aprox $74/barrel at today’s price.
________________________________________________________________
Q: What share price does Nasdaq require? How many OS will there be after the preffered issue?
A: $5/share. The OS will be below 50M. Based on a P2O machine producing in excess of $2M/profit/year it is not difficult to achieve even if we trade at a conservative multiple.
________________________________________________________________
Q: How is the feedstock put into the hopper? Conveyor system?
A: A conveyor. It's a trade secret how the plastic enters the reactor.
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Q: Do you care to make any forward-looking statements regarding revenue projections for all combined entities for 1H2010?
A: That will depend totally on P2O. It is our home run and the numbers are attractive. Negative cost in, 15% of weight converted to gas to run the system, paid for the oil output. It's a great growth model. You'll get numbers when P2O is validated.
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Q: can he feedstock hopper be loading whiile the processor is converting?
A: The. The processor is continuous or batch. We can load plastic into the system as long as the condensers are not overloaded. The system will feed plastic into the reactor. The feedstock enters in an oxygen free environment.
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Q: What operating permits are necessary for the P2O i.e. air quality, combustibles, etc
A: That depends on country, state and even down to the city level. We are focused on collecting and documenting as much data as possible for use in other areas.
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Q: Much has been written about the large plastic patch and environmental hazard in the ocean! Do you envision JBI eventuallyattacking this problem which would result in positive global press?
A: Well, we don't hire stock promoters so we have to look to work on projects that will bring attention to the company. In the end, the volume of our stock will depend on the number of people that know about it.
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Q: Is it one hopper full per batch?
A: No, the hopper will be topped up as the processor operates.
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Q: do you have to pre-shred the feestock? How big/small is the mouth of the processor?
A: The mouth of the processor is 16 inches.
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Q: would love to "hear" from the team in the next conf call (i.e voice/video). Good luck with the next few weeks!!!!
A: We will all be on the line next time. We just completed 3 acquisitions, a Q, large P2O, and managing the growth of the tape business and making PakIt in Canada. Everyone is working very hard. We will have a conference call with all when big P2O is done.
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Q: Does the feedstock(tires and plastic) need to be shredded prior to entering the hopper? or does the processor break it down to fit into the 16" opening?
A: You could load the processor with a laser printer and it would convert the plastic components to oil. The catalyst is a liquid and the heat transfer is very quick. Shredding is nice to expedite the process further.
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Q: Thanks for taking the time for this call -- many shareholders are very pleased that you announced it, myself included!
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Q: Thank you for your presentation
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Back Yard Bee Hive: See Link in my profile.
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