Plastic2Oil, Inc. announced that it has received $0.1 million in funding
August 07, 2016
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Plastic2Oil, Inc. (OTCPK:PTOI) announced that it has entered into a subscription agreement with Ontario based new investor, Lawrence Leahy for private placement of a five-year 12% secured promissory note due August 10, 2021 for gross proceeds of $100,000 on August 8, 2016. The note was issued at par. The note bears interest at a fixed rate of 12% per annum. The principal and the interest will be due and payable in full on August 10, 2021. The company also issued a five-year warrant to purchase up to 100,000 common shares at an exercise price of $0.12 per share with an expiry of August 10, 2021. The company issued securities pursuant to exemption provided under Regulation D. The note may be prepaid in full or part at any time without penalty. The events of default under the note include, the failure to timely pay principal or interest when due and the commencement of a bankruptcy, liquidation or similar proceeding against the company. The company’s obligations under the note are secured by a lien on substantially all of the assets of the company and Plastic2Oil of NY#1, LLC and JBI RE #1, Inc., each a subsidiary of the company. The transaction included participation from a single investor.
Plastic2Oil, Inc. is a technology development and licensing company. The Company has developed technology, which converts waste plastic into ultra-clean, ultra-low sulfur fuel products through its plastic-to-oil (P2O) process. It has constructed various fully operational P2O processors to demonstrate its technology and process to potential customers. The Company provides its solutions through its processors and technologies. The Companyâs primary offering is its Plastic2Oil (P2O) solution, which is its process that converts waste plastic into fuel through a series of chemical reactions (P2O business). It is a combination of its own technologies and processes developed by P2O, which convert waste plastics into fuel. The Company has three processors at its Niagara Falls, NY facility. Its subsidiaries include Plastic2Oil of NY #1, LLC, Plastic2Oil (Canada) Inc., JBI RE#1, Inc. and Plastic2Oil RE ONE, Inc.