Garb Oil and Power
An Overview of Progress
From 1972 to 2009, Garb was led by John Brewer who was a pioneer in the recycling industry and waste industry. John C. Brewer invented, patented and produced the first shredder in the world designed specifically for shredding tires. In 1995 he patented the first OTR (Off the Road) Tire Processor; this innovation inspired a variety of designs aimed at handling the large massive tires produced for the mining and construction industry.
By 2009 Garb had developed an impressive portfolio of patents and technological know-how within the recycling industry. In October 2009, in an effort to bring Garb to the next phase of its development and progress, the Company acquired Resource Protection Services GmBH (“RPS”) in a reverse acquisition. RPS, a German based company, had developed waste recycling units throughout Europe based on the patents of its Chief Technology Officer Igor Plahuta. Igor Plahuta and John Rossi through their companies sold over 135 machines between 1999 and 2007. Additionally, Messrs. Rossi and Plahuta contributed and participated in designing, building and developing over 15 plants in a variety of sizes in the waste industry. All of these are in operation as proof to the acceptability, need and success of the Company’s technology.
Upon acquiring RPS, the Company appointed John Rossi as its President and Igor Plahuta as its Chief Technology Officer. Messrs. Rossi and Plahuta immediately shifted the Company’s focus from patent development to marketing and revenue generation based on its technology. In the past RPS had acted as an engineering company when marketing its machines, receiving one time revenues from the sale and an ongoing maintenance agreement. With its technology now a part of Garb, it was decided that building full recycling plants around the Company’s patents and machines with joint venture partners would provide a larger upside for shareholders in terms of revenues and assets.
From October 2009 to the present, management has laid the infrastructure and aligned the necessary resources to allow the Company to begin building plants under its joint venture business model. In management’s opinion the joint venture model would allow the Company the ability to build numerous plants simultaneously without the burden of accessing capital and each plant would provide an ongoing source of revenues to sustain the Company’s growth.
With the 24 month process of positioning Garb to begin building plants complete, the ongoing keys to the success of the revenue model are and will be:
1) The equipment, the technological know-how and the engineering expertise to build recycling plants
-Garb holds numerous recycling patent and its management team has over 20 years experience in the business. Additionally, there are 135 machines operating throughout Europe that have been sold, engineered and based on the patents of current management. These are not prototypes or “proof of concept” models, these machines are fully operational and generating revenues.
2) Joint Venture Partners with the financial resources to build a recycling plant
-In August 2011 Garb entered a joint venture with ACG Consulting LLC to build 7 E-Waste recycling facilities within the next 3 years. ACG is a manager and facilitator of foreign investors seeking investments in the U.S. under the EB-5 Pilot Program. The EB-5 Pilot Program requires that a foreign investor make a minimum investment of $500,000 in a U.S. company in order to experience the benefits of the program.
-Additional joint venture partners are in the due diligence phase and are expected to materialize by the end of 2011
3) Continuous supply and source of recyclable material
-It is estimated that E-waste refuse will grow in the United States from the current 2.5 million tons per year to over 10 million tons per year by 2017. This together with the current trend by US States to ban the dumping of electronic waste in landfills will accelerate the trend towards alternative industrial solutions like Garb’s to the processing and handling of electronic waste.
-The European Union identifies 10 streams of electronic waste, which are treated and properly handled by specific set up plants using Garb’s technology. Recently North Carolina banned electronic waste from landfills and identified 15 streams to be banned. The trend in the States is to follow the European Union in the handling of E-Waste and Garb is perfectly positioned to take advantage of this.
4) End user/buyer for recycled material
- The Garb plants produce ultimately 4 types of products; copper, aluminum, alloys and plastic. These 4 groups of products are basically commodities and are sold in exactly this manner. The many refineries in the US and abroad are interested in forming long term relationships with Garb for the supply of these prime resources. Each plant sells its product to foundries or refineries around the world, these sales are tied to long term futures contracts, providing Garb with a continuous stream of revenue linked to the maximum capacity of production that each plant can generate.
In addition to developing cutting-edge recycling technology and patents, Garb has created a blueprint for turning those resources into ongoing revenues and growth for its shareholders. Like most business plans, the model and revenue stream make sense on paper. The true success or failure these business models are in the ability to execute that model and secure the necessary resources to do so.
Management’s previous sale of 135 machines, current joint venture with ACG Consulting LLC and ongoing developments has shown the ability and potential of Garb to execute their business model successfully. With all its resources aligned and infrastructure in place, the Company expects to announce several material developments over the next 90-120 days. In addition to securing joint venture partners Garb is expanding its portfolio of patents and technology to various other sectors of the recycling industry including waste to energy and car recycling. We believe these new and evolving markets will show extremely long term growth over the next 30 to 50 years