THOROLD, Ontario, March 16, 2011 (GLOBE NEWSWIRE) -- JBI, Inc. ("JBI") (OTCQX:JBII) announces that the Company has deemed it necessary to remove its independent accounting firm Ernst & Young, LLP and replace them with MSCM, LLP. MSCM, LLP has differentiated themselves for JBI by offering a responsive, partner-led audit team that has proven to us practical and timely client services. MSCM, LLP also has the international proficiency to meet the needs of JBI's future growth. We wish to reassure shareholders that there were no disagreements on any matter of accounting principles or practices, financial statement disclosures, auditing scope, or procedures with Ernst & Young, LLP.
With respect to the Company's Consent Order for Plastic2Oil, the New York Department of Environmental Conservation has received, on time, all submissions required under the Consent Order. These comprehensive submissions were constructed in line with the provisions set forth in the Consent Order. Submissions included a revised Air State Facility Permit for three processors, an Environmental Assessment, and Part 360 Solid Waste Permit binders.
Since receiving the Consent Order, JBI has simplified the configuration of the Plastic2Oil process using modular racking. The modular racks are prewired and plumbed, and constructed as complete units to simplify installations and reduce costs at remote sites. Also since receiving the Consent Order, our Plastic2Oil process has been extensively and successfully stress tested to ensure its operational integrity in preparation for operations at remote sites.
In addition, JBI is pleased to announce the signing of a letter of intent with a confidential party for the purchase of the naphtha produced from the Company's Plastic2Oil process. The term "naphtha" is used when fuel does not contain additives required for gasoline used as transportation fuel. This is very similar to the relationship between fuel oil #2 and diesel fuel. When road-use additives are not present, the petroleum product is referred to as fuel oil #2 and conversely, when road-use additives are present, the product is termed diesel. The confidential party named in the letter of intent has the capacity and interest to purchase up to approximately 144,000 gallons of naphtha per week, as it is available from JBI, Inc., at comparable market rates for such naphtha - rates that fluctuate similar to any other commodity. The Company and the confidential party expect to consummate their naphtha sale agreements in April 2011.
About JBI, Inc.
JBI, Inc. is an alternative Oil and Gas company. JBI developed a process that converts waste plastic into fuel (Plastic2Oil). JBI scaled a 1kg process to a 20MT commercial processor in less than 1 year. For more information please review 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. 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 amended Annual Report on Form 10-K, filed on December 15, 2010, with the Securities and Exchange Commission, 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.