Plastic2Oil Inc (PTOI)

[snow]

Koolmoto

First I would like to add that from an environmental point of view JBI's processor is clearly superior to that of Cassandra. The present processor has to burn off the gas produced although I think the plan is to change this at some future date. Therefore it would probably not have been acceptable in the US right now. Even so a politician in New York City has contacted Cassandra Oil as I mentioned a couple of days ago.

There have been delays during the last year for reasons that are similar to the delays in getting the JBII processor workning properly. But the changes have been much smaller to the Cassandra processor. They have had the intention to increase production. There are two models - 600 and 1500. The big one has still not been finished but is expected to be ready for production this autumn. The smaller model may produce more than 2 tons per hour but if that is the case it is still not known to the market.

The Cassandra Oil processor has been developed over a period of a few years as far as I know. The previous model had only about 25 % of the capacity of the current one. Cassandra Oil has only been on a Stock Exchange after a private placing in 2012 at less than 25 % of the current pps. My impression is that Cassandra oil has spent only a fraction of what JBII has spent to come where it is today. The current burn rate is also a lot lower. It is less than one million dollar per quarter. There are roughly 10 employees if I remember correctly. The reason is that Cassandra Oil does not build its own processors at this stage but if I remember correctly it may buy the company that builds them at a future date.

According to the current plans Cassandra Oil will start commercial production in October. The plan is to have 9 processors with the capacity of the smallest processor built during the last part of this year. This includes two big processors so the actual number is 6. It is quite possible that Cassandra Oil may be profitable the last quarter of this year if things work out more or less og as planned. One reason is that when there are joint ventures Cassandra will sell the processor to the joint venture at a much higher price than it costs to produce it. This will generate a nice profit before then production begins. This will enable Cassandra to own some of the processors 100 % in the future whereas others will be owned by joint ventures.