JBI, Inc. Raises $4 Million in Series B Financing to Fund Continued
Execution of Business Plan
NIAGARA FALLS, NY, Jan 02, 2013 (MARKETWIRE via COMTEX) --
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JBI, Inc. ("JBI" or the "Company") (OTCQB: JBII) is pleased to
announce that between December 27, 2012 and December 31, 2012, it
raised $4,012,554 in a private placement of 1,146,444 shares of the
Company's Series B Convertible Preferred Stock (the "Series B
Shares"). The Series B Shares, which were sold at a price of $3.50
per share, are each convertible into 7 shares of the Company's common
stock and have a mandatory conversion date of June 30, 2014. The
Series B Shares entitle the holders to a preference upon liquidation
equal to the purchase price of the Series B Shares. The terms of the
Company's private placement allow the Company to hold additional
closings for the sale of additional Series B Shares up to the maximum
offering amount of two million shares and gross proceeds of up to $7
million prior to the January 31, 2013 offering termination.
"This financing, combined with our efforts to grow revenues and
reduce costs, are important as we continue the momentum to execute
our business plan," stated JBI CEO Kevin Rauber. "With this
financing, we will continue to move forward towards our stated goals
and continue with development of our planned Plastic2Oil(R) site on
the RockTenn Company property in Jacksonville, Florida."
Matthew Ingham, JBI CFO, commented, "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."
More information about this financing can be found in the Company's
Current Report on Form 8-K filed with the Securities and Exchange
Commission on December 31, 2012.
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 of 2013.
About JBI, Inc.
JBI, Inc. is a leading clean energy company that recycles waste
plastic into liquid fuels. JBI's proprietary Plastic2Oil technology
can deliver economic and environmental benefits by replacing refined
fuels and diverting waste plastic from landfills. For further
information, please visit www.plastic2oil.com.
Forward Looking Statements
This press release contains statements, which may constitute "forward
looking statements" within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended by the Private
Securities Litigation Reform Act. The Private Securities Litigation
Reform Act of 1995 (PSLRA) implemented several significant
substantive changes affecting certain cases brought under the federal
securities laws, including changes related to pleading, discovery,
liability, class representation and awards fees as of 1995. Those
statements include statements regarding the intent, belief or current
expectations of JBI, and members of its management as well as the
assumptions on which such statements are based, including the
expected timing of the Company's Form 10-K, execution of the proposed
agreements described above and consummation of the transactions
contemplated by such agreements. Prospective investors are cautioned
that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual
results may differ materially from those contemplated by such
forward-looking statements. Such risks include, but are not limited
to: (1) JBI has a history of net losses, and may not be profitable in
the future; (2) JBI may not be able to obtain necessary licenses,
rights and permits required to develop or operate our Plastic2Oil
business, and may encounter environmental or occupational, safety and
health conditions or requirements that would adversely affect its
business; and (3) JBI may experience delays in the commercial
operations of its Plastic2Oil machines and there is no assurance that
they can be operated profitably. For a more detailed discussion of
such risks and other factors, see the Company's Annual Report on Form
10-K, filed with the SEC on March 19, 2012, as amended on April 30,
2012, and its other SEC filings. The Company undertakes no obligation
to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to
future operating results.
SOURCE: JBI, Inc.