Plastic2Oil Inc (OTCMKTS:PTOI) shares rose 7.32% to $0.0220 on Wednesday after the company was able to secure $1 million in debt financing. The company has a market cap of $2.56 million at 124.76 million shares outstanding. Share prices have been trading in a 52-week range of $0.02 to $0.09.
Plastic2Oil Inc is a company that manufactures processors, which produce fuel products mainly from unsorted, unwashed waste plastics for distribution across various markets. Its P2O Solution segment manufactures and sells processors, as well as sells the fuel produced through its processors while the Data Business segment is engaged in data storage and recovery.
Its primary offering is its P2O Solution, which is a process that converts waste plastic into fuel through a series of chemical reactions. The company collects mainly mixed plastics from commercial and industrial enterprises that generate large amounts of waste plastic for use in its process then uses this waste plastic as feedstock to produce Fuel Oil No. 2, Naphtha, and Fuel Oil No. 6 for various uses by its customers.
Earlier this week, Plastic2Oil Inc filed a new form D for total private financing of $1 million. The company has been able to finance $100,000 so far, representing 10% of the offering. This offering is still open and investors are waiting to see if it can be able to raise the remaining $900,000. If so, customers and investors get stronger assurance that the company can be able to stay in operation. Aside from that, this could bring positive PR, which might attract more venture capital and equity investment later on.
Back in March, in a letter to stockholders, Plastic2Oil Inc CEO noted that the market could use supportive government legislation to drive the widespread deployment of their technology. He also noted that crude oil price also impacts their business, apart from costs associated with landfill disposal.
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