Plastic2Oil Inc (PTOI)

[loanranger]

On October 2, 2019, Plastic2Oil, Inc., a Nevada corporation (the “Company”), entered into an agreement (“Agreement”) with Nulixo, Inc. (the “Buyer”), whereby the Buyer agreed to appoint the Company as the exclusive supplier for plastic to oil processors for a period of twenty (20) years. Specifically, the Buyer agrees to purchase at least eight (8) processors over a period of three (3) years, and at least one (1) to be ordered upon the effectiveness of the Agreement. Pursuant to the first purchase order, for which the company is awaiting initial funding of the purchase order, the Buyer ordered two (2) processors for Six Million Dollars ($6,000,000) with an initial payment of Three Million Dollars ($3,000,000). Any subsequent processor purchased shall be at a fixed rate of ($3,000,000). In addition, the Company has further agreed to provide monitoring and servicing services for a fee to be determined on a case by case basis.


"whereby the Buyer agreed to appoint the Company as the exclusive supplier for plastic to oil processors for a period of twenty (20) years"
The Buyer promises not to buy a processor from anyone else for 20 years?
Yep, that's what it says. Why would anyone commit to that? What was their incentive? Their business plan isn't to convert plastic to oil, it's to buy Plastic2Oil processors come hell or high water, whether they convert plastic to oil profitably or not...they've precluded themselves from buying any better equipment that might come along in the next 20 years and how low a bar is THAT?
(I'll bet the Agreement isn't quite that foolish, even if one of the parties is a State Senator.)

"the Buyer agrees to purchase at least eight (8) processors over a period of three (3) years, and at least one (1) to be ordered upon the effectiveness of the Agreement."
Wait a minute. What happened to this, from the first sentence:
On October 2, 2019, Plastic2Oil, Inc., a Nevada corporation (the “Company”), entered into an agreement (“Agreement”) with Nulixo, Inc. (the “Buyer”)?
I guess they entered into an Agreement on October 2 but it isn't effective yet (no date provided for effectiveness). When it IS effective Nutlixo will order a processor.

But a processor HAS BEEN ORDERED...two of them, actually.
"the Buyer ordered two (2) processors for Six Million Dollars ($6,000,000) with an initial payment of Three Million Dollars ($3,000,000)" that it hasn't made yet.

So there's no effective Agreement in place and the only purchase order issued to PTOI, which was contingent on its effectiveness, won't be acted upon because the terms were 50% cash with order and payment wasn't provided with the order.


This filing would have made sense if the 8-K instructions included an Item 1.0X Possible Entry into a Material Definitive Agreement.
All it takes now is a little imagination, just as it has since 2009.


Sing it, Dick.