Replies to post #236211 on Plastic2Oil Inc (PTOI)

[korogi]

Best rebuttal I have read to the recent "reassurances," and I don't see a reply as yet. You make good points as well.

Quote:Your analysis attempts to calm and soothe common shareholders, but I am NOT buying 99% of it. Instead, I would say "Conspiracy Theory Deepens"

Quote:CONSPIRACY THEORY SOLVED!...


Let us examine a few of your items.

Quote:The one "potential" benefit for those remaining as signatories of the Side Letter possess is the right to acquire voting control if the company has not seated a Qualified Board after 18 months.

This is rightfully a major concern of common shareholders. There are many ways to bankrupt a company. If the letter agreement is not amended or rescinded before mid-November and the investor group (or some within it) want control over the fate of the company, they can capture Mr. Bordynuik's series A preferred voting rights. Without an independent BOD in place, the investor group can make "bad decisions" that result in chapter 7, with the result that the company would be liquidated.

Quote: ...if this technology is worth so much money, then some other entity will pay off the liquidation preference of the convertible preferred shareholder, eight million dollars, then all the residual value goes to us, the common shareholders.

That's not comforting at all, as the value of JBI resides in P2 and P3 (then #4...#5...etc.) with HTF, actively producing ultra-low sulphur from waste plastic. We are not interested in liquidation value, are you?

Quote:Who has the unilateral right to seat a Qualified Board? Pursuant to Section 4. of the Side Letter, John Bordynuik, no other individual, may now unilaterally seat Qualified board members.

Mr. Wesson had more than one "qualified board member" ready to be seated, and several that had stellar resumes and were close to the stipulated criteria of the side letter, but Rauber, Bogolin and Ingham continued to stall Wesson and denied the seating... do you have any idea why?

Quote: With over 2300 publicly traded companies with a market cap in excess of $700 million, that creates a potential pool of board members that may number between 15,000-20,000 prospective candidates. This number may be somewhat reduced by the requirement of also sitting on another board, in the past, with a market cap of at least $700 million. John could certainly source a number of board members from this large universe.

This argument is false and misleading. The universe may be large, but Mr. Wesson has publicly stated that after working with the NACD, the CDG and the Boston Club for many months to procure candidates for the Board: "Most were Master Professional Director qualified. Many had been CEO's in their own right and/or CFO's. Some had recognition of Director Organizations...The candidates themselves were impressed by the prospective slate." (see sticky note at the top)

Quote:Not one post has explained how they (the whales) could benefit themselves to the exclusion of the other common shareholders.

1) Simple: bankrupt the company and liquidate the assets. Bring in their own engineers to try and reverse engineer the processors. Spend money to do what Mr. Bordynuik is doing now, and then when ready, come out with a road show and IPO and clean up. Sound good? NO, not for common shareholders it does not!

Regarding the second nefarious group of "Killer Whales"

Quote:Why would they have invested $8 million in the company, when they could have merely not invested the capital seven months ago, and have the company go into Chapter 11 without such investment?

Perhaps to let Mr. Bordynuik bring the technology along to a finished product, but not be "inclined" to provide a final bridge of cash until production revenues take over?

Quote:Furthermore, who has "exclusivity" during the initial stages of the Chapter 11 process to file a plan of reorganization? We do! The common shareholders have the exclusive right to construct a plan of reorganization for a period of time, not the convertible preferred shareholders.

But unfortunately, not true for Chapter 7, n'cest pas?

Quote: Furthermore, even if the company were to go into Chapter 7 So the convertible shareholders merely break even on their investment. Not much of an incentive for them to see the company fail, versus seeing the company thrive and having the value of the underlying common be high.

I agree with you, unless the investor group also captures the company's intellectual property at the same time.

Quote:Lastly, and importantly, there is predominantly one key variable that trumps all of the issues, the uptime performance of the processors. Only one person controls that. John Bordynuik.

He doesn't "control it" but I happen to know he has been working his butt of to make it happen, in spite of many different kinds of challenges along the way. I am hearing he is on the brink of success, are you?

Quote:John Bordynuik controls the processors and therefore, the cash flow generation of this company.

Only if Tony has procured enough feedstock, and so far Tony has been a disaster, commuting a couple days/week and screwing things up when he is present at the plant. Any idea why this would be so??

Quote:Let's hope he gets the processors to operate at significant uptimes expeditiously, so all of us common shareholders will benefit.

This is my sole agreement with you.