NJ plant set to open this month!When you think about the deal that IBR has with Converted Organics, it makes you wonder why COI wouldn't just buy up the whole comp[any. Why would you bother to pay 9% of all revenues when you can buy the whole company SO CHEAP? At today's price, IBR is values at $5 million. That's it. At .25 cents a share it still less than 9 million. Cheap!
I'd like to see what the gross revenue of sold product is for COI. The number's will be easy to crunch from there. Here is an SEC clip from Converted Organics regarding IBR's deal.
"The Company is obligated to pay IBRC an aggregate royalty equal to nine percent of the future gross revenues from the sale of product produced by the Woodbridge facility. The license agreement containing this royalty provision may be terminated at IBRC’s option, if the Company does not commence continuous operations at the Woodbridge facility, as defined in the license agreement, by February 1, 2009. The Company is also obligated to purchase IBRC’s patented macerators and shearators, as specified by or supplied by IBRC or Shearator Corporation for use at the Woodbridge facility.
In addition, the Company paid $139,978 to IBRC in 2007 for a non-refundable deposit on a second plant licensing agreement. The Company also agreed to pay IBRC approximately $245,000 in twelve equal monthly installments for market research, growth trails and other services. As of December 31, 2007, the Company had paid approximately $143,000 of this amount which has been included in research and development in the Company’s consolidated statements of operations."