Isn't there something unusual about a situation wherein a company in its infancy in terms of production buys a facility as described and the CEO says this about it over a year and a half later?
"The blending site has not purchased,sold, or blended any fuel to date. It will be blending and selling fuels after we get a few more processors operating."
JBI, Inc. Acquires Large Independent Fuel Blending and Distribution Site
NIAGARA FALLS, Ontario, Feb. 12, 2010 (GLOBE NEWSWIRE) -- JBI, Inc. (the "Company") (OTCBB:JBII) is pleased to announce that it has signed a purchase agreement for a fuel blending and distribution site. In addition to buildings, a laboratory, and electrical control operations, the site has thirteen 20,000 gallon tanks with full blending infrastructure in place, incorporating top and bottom loading capability. This site also has in excess of 5 acres of land for expansion. This independent fuel blending site has capacity to handle up to 300 million U. S. Dollars per year in fuel.
The site was previously used to blend specialty fuels, and blend toluene and other additives with low octane fuels to make gasoline for use at the pump. The site also previously blended specialty fuels including heating oils and other heavy fuels. Originally, costing about $3,000,000 to outfit, the site previously generated over $230,000,000 in annual revenues. Historically, the site supported 80 tanker trucks per shift and used four high speed bottom loaders to fill the trucks.
And it "has not purchased,sold, or blended any fuel to date."?
It just seems odd to me. The way it is described one would not expect to secure such a facility at such a price:
"A purchase agreement in the amount of $130,000.00 has been signed and the Company anticipates the transaction to close within 30 days."
Either the facility is a brilliant acquisition done in anticipation of explosive growth or it's a mess bought at a rock bottom price on a distressed basis that will be or is requiring a great deal of capital in order to restore any functionality at all. I wouldn't think that getting "a few more processors operating" would put a dent in the capacity of such a facility.
I'm tryin ta think but nuttin happens......Curly
