Plastic2Oil Inc (PTOI)

[Estimated_Prophet]

JB's FB consolidated from 12/13
Company Owned/JV/Franchisee Open Discussion (please comment): I have received many requests for P2O JV's and so if you are considering one this might help. First, FL,NY,and PA is out of the question. NY is all company & R&D, FL is exclusive JV, PA is company. Structure: JV1 (op to pay $50k and receive 10% revenue), operate site. JV2 (op to pay $400k and receive 35% revenue) -- very few of these will be considered.

I have been approached to allow funds to equity invest in large blocks ($100M+) to roll out sites (stock price must be significantly higher). They like this because all revenue stays within company, we like it because of above. Massive land rush would require $2.5B of fund equity, all agree this must be a massive concurrent implementation.

Outback Steakhouse structured 90/10's, 50-50, etcc, and manager agreements because they did not have the capital to go to market. We can head this off on the pass with equity funds & a few key JV's. Suggestions? I'll provide the math -- our mgmt is working out the gotomarket strategy as well.

Lockup of plastic is simple: pay me less for 10 years or continue to pay $80/ton and continue to lose money and you're not green. Very simple. As no one else can convert it, I will not allow a market to be created.

Please do the math and explore other similiar business models where a national rollout was required (ie: Checker's restaurants). Case studies like Lowen Funeral Homes don't apply because the costs of the funeral homes increased due to competition to buy clusters. We can benefit from clustering but not essential.

We are exploring the right balance: company (through equity PIPEs), JV's (10% and 35%), and franchisee (last resort).

In any event, FL should be a good quick test. I'll supply the math and maybe someone has some creative ideas to determine the ladder financing required to take it through (we are doing this inhouse but shareholders may think of something we have not).