JBI Inc. raises total of $8 million, Proposes Jacksonville energy plant
JBI Inc. announced it raised another $4 million this month, selling a total of 2.3 million shares for $8.05 million, indicating its proposed Plastic2Oil plant at RockTenn in Jacksonville might be closer to development.
JBI, based in Niagara Falls, N.Y., said Thursday it completed a sale with investors for 1,153,556 additional shares of its Series B convertible preferred stock, generating $4.04 million.
Added to a previous sale announced Jan. 2 of a December sale of 1,146,444 shares for $4.01 million, the total raised exceeds $8 million.
"We are pleased with the positive investor response which allowed us to not only meet, but to exceed our original goals for this raise. This funding is key to continued execution of our plans," said JBI CEO Kevin Rauber in a news release.
Shares in December were sold Dec. 27-31 and the January shares were sold Jan. 11-17.
JBI describes itself as a leading clean energy company that recycles waste plastic into liquid fuels. It says its proprietary Plastic2Oil technology "can deliver economic and environmental benefits by replacing refined fuels and diverting waste plastic from landfills."
Its website is plastic2oil.com.
After the December sale, JBI said in a Securities and Exchange Commission filing Dec. 31 that it raised $4 million between Dec. 27 and Dec. 31 in a private placement of stock, indicating it was a step closer to developing a Plastic2Oil plant in North Jacksonville.
"With this financing, we will continue to move forward towards our stated goals and continue with development of our planned Plastic2Oil site on the RockTenn Company property in Jacksonville, Florida," Rauber said December in the statement in the Form 8-K filing with the SEC.
"This financing, combined with our efforts to grow revenues and reduce costs, are important as we continue the momentum to execute our business plan," he said in the Form 8-K, which is used by public companies to report major events.
Public companies also file annual Form 10-K and quarterly Form 10-Q reports.
JBI CFO Matthew Ingham also commented in the December filing.
"We are excited about this financing, as we believe that it provides us with the necessary capital and flexibility to expand our production capabilities as we continue to work towards maximizing shareholder value," he said in the filing.
RockTenn and JBI continue to decline comment about a possible JBI plant at RockTenn. RockTenn Corporate Communications Director Robin Keegan has declined comment and referred questions to JBI. Chris Irons of JBI investor relations has said the company had no comment.
Neither responded to a request for comment Tuesday.
The Daily Record reported in August plans were under review for a Plastic2Oil production plant to convert waste plastic into fuel oil. It is shown as a 5-acre project on part of the 241-acre site of the RockTenn Corp. Seminole containerboard mill, formerly known as Smurfit-Stone Container Corp.
RockTenn is in North Jacksonville at 9469 Eastport Road, off Heckscher Drive.
As reported, preliminary site plans show a 9,360-square-foot module production pad with adjacent space for truck unloading; a 1,170-square-foot storage tank concrete area; a 900-square-foot fuel truck loading area; a cooling tower; and a 720-square-foot quality control testing laboratory trailer.
The plans show conveyors, three "premelts," three reactors and towers and condensers.
Technical Associates is listed as the civil, structural and mechanical engineer, while Janet Whitmill is named as the landscape architect.
JBI formerly listed its headquarters as Thorold, Ontario, in news releases. In a Nov. 8 release, it used the dateline of Niagara Falls, N.Y., and referred to its new executive team, headed by Rauber as president and CEO. The latest Form 8-K filings and news releases also use Niagara Falls as the headquarters.
JBI's Niagara Falls facility currently has two operational Plastic2Oil processors and a third is being assembled and is expected to come online during the first quarter this year.
In late October, the Daily Record reported there had been little reported movement in the proposed Plastic2Oil plant at RockTenn.
The City began reviewing construction plans in April and has approved some of the several required elements of the project.
Another indication about Jacksonville plans was included in an October news release.
In a news release posted Oct. 12 on the plastic2oil.com website, JBI, then listing its headquarters as Thorold, Ontario, commented "on improper release of SAIC Evaluation Report" regarding its technology.
The Daily Record obtained what appears to be the executive summary of the SAIC report, which contained processing data from reviewing JBI's facility in Niagara Falls. It addressed the "proposed commercial facility" in Jacksonville and estimated capital costs and earnings.
JBI would not comment about the specific information. The executive summary said the Jacksonville site would consist of three processors that cost $6.5 million plus engineering design fees and contractor distributable costs that could add up to $2 million for the overall capital cost to construction. That totals $8.5 million.
JBI "has become aware of the improper release of a confidential executive summary prepared by SAIC Energy, Environment & Infrastructure LLC relating to SAIC's May 2012 evaluation report on JBI's Plastic2Oil technology," JBI said in the Oct. 12 release.
SAIC is a private consultant for scientific, engineering, systems integration and technical services.
JBI announced May 15 that SAIC was commissioned for an independent review of its technology, process and business model. "However, neither the SAIC report nor the executive summary should be relied on as management's analysis or opinion regarding JBI's current strategic plan or its business or financial prospects," it said.
"Furthermore, the conclusions drawn by SAIC were based upon a number of assumptions made at the time of the report that may be outdated or incorrect or that may prove to be incorrect in the future. Management's current assumptions may differ and additional events, risks and uncertainties may cause JBI's actual results and performance to differ from SAIC conclusions or projections," it said.
"JBI encourages investors and potential investors to look to the statements and information contained in JBI's press releases and in its periodic reports filed with the Securities and Exchange Commission when making any investment decisions about JBI's securities," it said.
The plastic2oil.com site describes JBI as "an innovative North American fuel company that transforms unsorted, unwashed waste plastic into ultra-clean, ultra-low sulphur fuel without the need for refinement."
According to the website, JBI and Smurfit-Stone Container Corp., which RockTenn acquired in 2011, entered into an agreement in April 2011 and the company made its first fuel sale.
In July 2011, JBI reported it entered into a 10-year referral and revenue-sharing agreement with RockTenn to convert product waste into fuel using the P2O technology.
The JBI website reports that JBI's patent-pending process "is a commercially viable, proprietary process designed to provide immediate economic benefit for industry, communities and government organizations with waste plastic recycling challenges."
The website reports that Rauber previously was vice president and general manager of RockTenn, which is based in Norcross, Ga., and operates more than 240 facilities in the United States, Canada, Mexico, Argentina, China and Chile.
In May, JBI announced a $10 million investment in equity capital, a successful review of its technology by SAIC, former CEO John Bordynuik's transition to become chief of technology and Rauber's decision to join as CEO and president.
OptumRx training space OK'd
The City approved the permit for Auld & White Constructors LLC to renovate 16,314 square feet of training space at Flagler Center for OptumRx, which is hiring 300 employees for a pharmacy benefits customer service center. The conversion of the existing office space for training at 12854 Kenan Drive, No. 120, is shown at a project cost of $64,400.
As reported, UnitedHealth Group plans a 300-job inbound call center in Southside for its OptumRx pharmacy benefits management organization. The City already has issued a permit for Auld & White Constructors to remodel 47,853 square feet of space at 7159 Corklan Drive in Flagler Center for the operation.
OptumRx wants to open the center by mid-year with 150 employees. UnitedHealth Group, based in Minnetonka, Minn., is a health benefits services company.