well.. let's be somewhat practical hrere and read between the lines. Of course this has been in the works for longer than a week. YOu don't jhust walk out your front door and ask anybody happening by iof they want some PIPE shares today. I have actually had some guys stop by places I have lived and open up their vans and ask me if I wanted to buy some stereo equipment... LOL... the investors were approached months ago and this week was just the closing of the deal....


just practicallin'

The SEC is only seeking compensation?? You seem to be taking it pretty lightly. The amount of the compensation would break JBI financially, and from my reading of it they want to make JB and the CFO personally liable.

And I don't think thaqt the government is goign to go away and back down for a fractional settlement like a private sector person would. A couple of lawsuits seem to have gone away with similar high numbers. I expected that. They usually do. But isn't this Uncle Sam?

Seems to me that if they are bothered enough to go to the extent of this suit, they mean to carry it through and put him out of business. ANd the monetary valuer of the settlement is inconsequential (to them). Not inconsequential to JBI.

You mean "Fiduciary Duty" or "Fiduciary Responsibility" don't you? Just Fiduciatin'

(Judges have Judiciary Responsibility).

"Bottom Line is they corrected it immediately when the SEC raised the issue"??

how exactly did the SEC raise the issue? As I remember it, the restatement to fix the accouinting came out just after the completion of the 4.00 PIPE. And it was JBI that came out and restated, there was no pressure from anyone as I recall it.

so what exactly do you mean by that? just meanin'

how has he been good for shareholders? I guess it all depends on when you got in. One can do the math any way they want. I would say that getting the price up to 7.00 through setting unrealistic expectations and then letting it slide to where it is now is not being good for shareholders. SOmehow getting the price up to neatly coincide with AGMs is not exactly good either.

I doubt that. Do you have any evidence of that? just evidencin'.

that PIPE would have been in the works for months and leaves investors screwed again.. just screwin'.

not likely.

PPs take awhile to arrange. The timing of this SEC pawsuit annnouncement was unfortunate for JB, as it leaves the PIPE investors feeling screwed again. They bought in at 1.00 expecting to be at a 50% discount or less to current market prices. Unfortunately, the stock will likely do a nice triangle formation and settle around 1.20 or a bit less.

Not lookign like a good deal anymore for those PIPE investors.

as for them being the whales? Not likely.. just wishful thinkin'.

Just whalin' and not likely'in..

anybody get aload of the attorney's name??

Donald Gouge???

say it ain't so... just gouging...

I doubt very seriously that a Buffalo police officer would have such expertise, much less care. I should know, I talked with one of them at that very gate... LOLOLOL".

Your post does not make a whole lot of sense and not much understanding of the basics of fraud or misrepresentation. In fact, you are helping thge SEC by posting this.

Point #1 really helps the SEC. You said "shortly after". Exactly. Shortly after obtaining financing, they fixed the books. The books were used to obtain the financing. Hence fraud. It is pretty simple. People were misled. Thanks.

Point #2. again, thanks. It makes no difference what JBI's opinion of the media credits worth was, or for that matter what the SEC thinks the media credits are worth. The suit alleges that they obtained information that indicated they were worth less than valued, and still proceeded with the financing. Fraud. The fact that it was "shortly after" acknowledges it is fraud. They must have known if it was shortly after. Otherwise they are just plain incompetent.

Point #3. The PIPE investors came in at $4.00 based on a discouint to current stock price. Current stock prices is based on probably a couple of factors, of which the financial condition of the company is one of them. Those factors I could probably count on one hand. THe competitive advantage of P2O is another.

Point #4. You may actually have a point. He did spend alot of money on a plant. I don't know myself how much he has been paid.

Point #9. Yes it is "purportedly" because there is nothing tangible in terms of serious revenues having come from this process. That is a matter of debate, but at this moment P2O is a failure.

The rest of it is conspiracy theories.

That is interesting how you conveniently ignore the fact that the PIPE investors bought at $4, immediately before the restatement, and then promptly got screwed as the stock plummeted to below $1.

I don't think you understnad what misrepresentation is.

Misrepresentation occurs when known facts are withheld pertinent to any business deal and that affect the outcome. THe outcome here was that PIPE investors here were misled and purchased shares at $4 that they easily could have had for $1 within days of completing their purchase. Itg is quite simple.

In case you do not know, it is not necessary for the perpetrator to even know the facts. If it is a CEO, then it is enough that he "ought to have known". This principle has been firmly established in Canada.

THe basic facts are these:
- the PIPE occurred at $4. If I remember correctly they raised 2.5M.
- from the timing, the negotiations and price setting occurred during the time of the AGM.
- At that time the stock price was over $4. This stands to reason, since the PIPE would have to be at a discount to market in order to attract investors.
- within days of the last stage of the pIPE offering occurring, the restatement was announced. I remember it as being days, but it could have been a month.

CLearly, JB knew of the problems with the financials while the pIPE was being arranged. He chose to proceed and announce the restatement immediately thereafter. Maybe he naively thought the price would not collapse. NO matter. Had the PIPE investors known about the misrepresented financial condition of the company, they would not have bought into the pIPE. The act of restatement caused the price drop, which clearly quantifies the damages that JB is responsible for.

To make it even more damning, JB even referred to the media credits in his restatement. He did it to himself.

The SEC is taking the time that the media credits remained on the books and totalling up all of the PIPES and coming up with 8.x M. I distinctly remember the $4 PIPE and I think it was $2.5M, which was his biggest PIPE.
- the price fell to less than 1$.

I think JBII has been porked finally...

zardiw:

The way that JBI handled the restatement of the financial statements caused the stock to fall from over $4.00 to under $1.00. That is a 75% loss. I was there and I watched it. I called it misrepresentation at the time.

I thought that JBI was all about the shareholders. what about those poor PIPEholders that bought that private placement at $4.00/share on the basis of those financial statements? They were knowingly misrepresented, whether it is over False Media Credits or not.

What about those shareholders??

whatever it takes eh? At the expense of the investors? THe impact of restating the financial statements was a drop of about 75% (I am guessing) in the stock price, from $4.00 to around $1.00, THe PIPE price was $4.00. THe fraud enabled him to finance P2O going forward. Without it, he would have been sunk...

TOo bad it is all a waste, he is sunk anyway.

you can't take every post so literally. I was clearly poking fun.

If you look at the body of my posts I never doubted that JBI would get an air permit. I clearly stated that it was a small minor part of an overall plan that seemed to be nonexistent and incoherent.

like I said, it is like charging Al Capone with tax fraud. It can at least be proven.

Most of the conspiracy theories are probabably correct, they just can't be proven.

I never said they would never be issued... permits were always a smokescreen, nothing more.

in my view that justifies the use of the work "most".

they are meaningless fluff. We have no first-hand idea as to the type of contract he has, the price at which he is selling his fuel, the profitability of the sales... and it has been revealed that the fuel will not be derived from plastic (for the mnost part).

so they are meaningless fluff.

We have no idea whether or not the companies involved even value the business.

I can tell you this. I worked at an industrial gases company and several others. Business relationships are built over years and companies have to be qualified. THere is no way that JBI is qualified to work with annybody serious. THey do not have financial stability, for one thing.

JB needs rto sell some fuel to somebody and get his little experimental facility functional and profitable, then maybe somebody serious will touch him.

well he has some sales, that isz not in question. From the beginning I have posted that his costs are much higher than stated. The business is getting more complicated by the day. He has not executed and simply sold fuel.

It seems very obvious that he has taken investors money and refitted his family's blending plant and is blending and selling fuel obtained from other sources than P2O.

no it is not. these PR's mean nothing..

right. I have worked in several companies over the last few years that have industrial suppliers. it is a cutthroat business. Just because a supply aggreement is in place means nothing. There is brutal competition. I was at an industrial gases company and we had to have a minimum 3 nids on any contract... we picked the best ones. not necesswarily the cheapest.. the best.

great. how does that result in a conclusion that JBI will be profitbale? just askin'

well it was not me.. sure he can sell something to somebody. I know for sure that he can refit the blending plant and sell fuel from iut (not derived from plastic, mind you) and call it a sale from the JBI legal entity. That much I do know.

It is about a profitable business selling fuel derived from waste plastic.

the army of processors will take years to build. meanwhile they are fighting the SEC In court??

I am working on an $850 Million job right now.. it was either that or an army of processors!!!!!!!!!!!!

None of those people are responsible for the company being profitable, are they? Environmental audits and assessments are anecessary part of doing business that should be planned and allowed for.

Just because he has a couple of customers does not mean much. We have no idea how many suppliers those customers have. Fuel distributioon is a cutthroat business. THye likely have many suppliers and make them compete ffor the best price.

jBI was years away from proving itself.

Rawnoc:

How do you know the technology is economically viable? Because JB said so?

If they are going to "blanket" the country with machines, where are they goign to come up with the capital (money)to do that?

If they find someone to back them, show me the ROI (Return On Investment) analysis that shows they will be profitable?

I bet this relies on JB's statement that it only costs $10/barrel? UNproven.

I should look out for that army of processors on my walk tonight..

LOL

it has everything to do with what the company is doing right now. PIPE shares were sold based on those financial statements. I called it at the time. I posted about it, said it was misrepresentation and was very serious. THe stock dropped from over 4 to a low of arouind .50.

From my reading of the claim... the company and likely the individuals owe money to shareholders in compensation. If that is the case, they will not get out from under that. First of all, they have no money. It has been spent, to the tune of $25M, on an experimental setup that has no production value, as has been demonstrated. If it had, we would all know it.

THey need capital. Can`t so it by selling PIPE shares anymore as the current management is discredited. THe only way out is to refinance with new leadership or sell to another company. EIther way, existing shareholders will get screwed. Maybe a Reverse Split.

Bankruptcy is not applicable, as they have no debt (unless that has changed).

I think a trading halt is highly likely... given today`s action.. but reall I don`t havve the experience and am Canadian.

This is like Al Capone being charged with tax evasion.

Anything to get him out of there and stop wasting people`s hard-earned cash.

I personally don't care about the media credits (congrats to certain other posters who picked it up right away). I have not posted here in awhile, but there are certain overarching realities of this company that matter far more than media credits.

- they have no sense of execution. Frankly, how they have handled permitting is a mess. An investor in this stock has no idea, repeat none, of at what point they can go into production.
- they have an ever-expanding mission statement with no end in sight. That is the sign of a CEO living in an alternate reality, or just pure BS.
- the plant they do have is just for show and makes no practical sense. It is too big, too sprawling to be real. T`hey do not need a machine shop.
- They have no plan. Nothing the investor can rely on.

And they are going to choose to fight the SEC in court??? BBBAAAAAHHHHAAAAA what a joke. Who is the judge going to give the benefit of the doubt to? In any case, the fraud has occurred. Whether it is frixed or not is of no consequence. It occurred. I personally watched the stock drop from 4 and change to .50 the damage was done.

I suspect JB will end up in a desert island that has no extradition treaty or in jail. Either way, it will be no fun. And I will watch with glee the further revelations that come from this.

It really does not get any better than this.

Tech:

You have no idea whether the "technology" is any good or not. You/ we have no idea whether or not it is profitable. Frankly, if it isn't profitable, then no matter how wonderful it is, it really dcoes not matter. THe biggest problem with alternative energy is that it is not profitable. Lots of alternative energy companies are goign bankrupt right now.

WHy do you think the technology is so great? All ti is is some catalyst, backed up by a lab report. SO what?

As for profitability... all we have is JB's assessment of his costs and potential profitability. If his numbers were even half right, he would be making money by now. And... the guy is being sued for fraud by the government. THat does not make you question him even a bit? ROFL.

I personally think the catalyst is a marketing ploy. Maybe stolen from another company. Maybe it does not even exist.

This should scare investors.

"The XTR Energy agreement will require the Company to purchase third party fuels to blend with its P2O fuel output until it can build out the capacity to meet the full quantities required by the customer."

So without doing any research this confirms that the fuel being sold cannot be verified as coming from the P2O process. SO investors havve no idea whether or not Mr Bordynuik's claims about profitability are true or not. There is no mention in the PR about profit margins... etc. Anybody can blend and sell fuel. Sounds like this whole company is simply a vehicle to repaint the blending plant and get it back into service. All in the family business.

This statement confirms it:

"It's a huge step forward in achieving our vision of becoming a vertically integrated plastic recycling, fuel processing and fuel distribution company."

That is not the vision that I read when I first started posting here and seems to be evolving all the time.

Do investors have any idea how much competition there is in the fuel distribution and processing business? How do they know that jBI can be profitable?

I have known many arrogant managers in my time. They won't admit that they are in over their heads until it is too late. They keep on making promises until the bitter end. Lots of company-issued financial statements read like that too unfortunately...

I think it would be a good idea to sell on this upswing... which is purely news-generated.

For those underwater... remember what was promised to you 1 year ago? 2 years ago??

no I never said that. I just said that they will never make money. I don't know these companies personally,but they have supply agreements all over the place. JBII could never deliver a drop and they ould care less, they just go to someone else.

I had to laugh when the PR said that this means we deon't have to worry about marketing" or words to that effect... Simple statements for simple minds..

These annoucements are no big deal. How will anyone ever know whether or not this fu is coming from the plastic or from some other source? The basic economics of this have yet to be proven. I still say he will never make money, the process is not econimically viable, and if this enterprise ever makes profit, it will never be from the P2O process.

In the new year I should have time again for daily commentary.

what about the possibility that the market for the stock is being manipulated by a few experienced traders with modest amounts of cash that are able to successfully manipulate the stock price on low volume?

This stock does not move with the market in any way. I am not sue what drives it, my best guess would be message boards, as incedible as that may seem. But, one would have to think there are other forces at work, because there simply has been no reason other than irrational exuberance for these stong upward moves.

Note the downward "crashes" on fairly low volume as well.

JBII passes below a buck!! I guess the pig is going to have to fly until they "annihlate" (sp.?) that marker in the other direction.

In looking at the 10Q, I can see why. More empty hype and promises, no sales of any consequence... promises not met.. and they are getting rid of Pak-It... another failure.

The pig flies...

excellent point... does not sound to me like they can simply put lenghts of twisted metal in there... (I have not been on the board much lately, but it seems like that is what Raggertail is based on reading the last 100 posts)

keep on digging.. if they permit by weight, then they must aso define prety well what can go into the machine according to that permit.. i am not up on it.

bankrptcy is unlikely... most of these kind of lawsuits are way overstated. JBI will wait until the last minute and make some kind of settlement for a minimal amount.. bankruptcy depends on how much cash they have... which is an excellent question. market cap is irrelevant.

first of all, they will probably be late...

secondly they probably will not have made any money...

thirdly they will probably have some spin meant to distract from the above 2...