Canglobe plans PET recycling plant

Edmonton— Canglobe International Inc., chairman, Donald Getty announced the company has acquired the manufacturing and marketing rights to produce PET flake, pellets, and sheeting from post consumer PET bottles, from Grant Bennett and Donald Sampson, president and CEO of Canglobe International, Inc.

Using unique processing systems designed by Bennett and Sampson, the company can proceed to acquire requisite equipment and commence operations within one month of delivery.

The initial costs to produce a PET pellet producing facility from recycled PET is estimated at $2.0 million and the PET recycling facility would be in cash flow within three months of funding. Payback is estimated at 6-8 months from start up of operations.

The cost to build a 40 million pound per year recycled PET production facility is approximately $10 million. Construction and startup is approximately six months and payback is estimated at 8-12 months after commencement of production.

Given that demand for PET pellets, flake and sheeting has been growing at an estimated 20% per year for the last five years, and that this growth is expected to continue as more and more products are being packaged using PET; there are acute shortages of PET pellets, flake and sheeting developing in the market.

Bennett has indicated that not only does he have standing orders for all production from the PET recycling facility; he has also secured a continuous supply of post consumer bottles to feed the facility from California and other western U.S. states.

The PET recycling facility is to be operated in the Las Vegas area of Nevada. Under the terms of the acquisition, Bennett and Sampson have the right to earn 3.1 million restricted shares of Canglobe International stock, most of this being earned upon the completion of the $10 million PET recycling facility.

Financing for the acquisition is currently being raised by way of the private placement of convertible debentures to accredited investors. The convertible debentures have an annual interest rate of 8% and are convertible to common shares after 12 months at a base price of the greater of market or $0.50 per share.

Bennett is joining Canglobe to lead this project. Bennett has over 30 years of experience encompassing all aspects of polymer raw material, plastic conversion methods.