What ticks me off, is why
didn't someone tell us about this stock prior to today? Or did they? Too bad
hindsight didn't count for anything. Oh well ;-)).
Well Knight here is one that will probably take about two
weeks from lift-off be patient and do your homework.Call 416 864 0237
POR.A: You people having an interest in this topic may want to keep an
eye on this Co.
>>THE COMPANY
Advanced Process Fuels Inc. (the "Company" or "APF") was incorporated
pursuant to the Business Corporations Act (Ontario) on October 31, 1994
under the name 1102634 Ontario Inc. It changed its name on February
10, 1995 to Advanced Process Fuels Inc.APF has agreements to acquire a
20% direct interest and 87.5% of a company holding the remaining 80% of
941037 Ontario Limited (operating as Encore-Fu el - "Enviro-Fuel").
Enviro-Fuel operates the APF micro-refinery on leased land near Kingston,
Ontario which has been permitted as a waste-oil handling facility
by the Ontario Ministry of Consumer and Corporate Relations. APF has set
aside 250,000 common shares of APF for acquiring 100% of Enviro-Fuel.
Such acquisition is expected to be completed prior to closing of the
Major Transaction. The company also has a 25% interest in RRR
Environmental Services Ltd., which operates a waste oil refinery in Regina,
Saskatchewan.The head office of APF is located at 5405 Eglinton Avenue
West, Suite 211, Etobicoke, Ontario, M9C 5K6 and the registered office
is located at Suite 2500, 181 Bay Street, Toronto Ontario, m5j 2j7.
BUSINESS OF THE COMPANY
From October, 1994 to the end of 1996 APF operated a batch process waste
oilrefinery near Kingston, Ontario, during which time APF built a similar
refinery in Regina, Saskatchewan. APF has since designed and built a
continuos process micro-refinery, near Kingston, Ontario using the "Yu
Process".In consideration of using the Yu Process , APF pays a royalty
to the developer of the greater of $50,000 or 7 1/2% of the manufacture's
net invoice price on the process equipment.
APF is in the business of designing, manufacturing and installing turnkey
waste micro-refineries, using a unique pending process. The micro-refineries
convert used motor oil and other waste lubricants into diesel fuel. APF
has completed construction of a micro-refinery at the APF Training and
Research Center near Kingston, Ontario. The facility is in the start-up
and commissioning phase. APF is discussing proposals with other interested
parties worldwide for future new installations. No contracts have been
entered into and are subject to further discussions upon completion of
testing at the Kingston micro-refinery.
For the fiscal years ended October 31, 1995 and 1996, the Company and its
affiliate had consolidated revenues of $8,500 and $1.5 million respectively ,
acquired feedstock as throughput in the refining process from five suppliers
and sold the output to several customers directly and through fuel brokers.
For fiscal 1996 the Company generated revenue from the sale of a refining
plant to a third party operator, leaving revenue on a refinery plant built
for an affiliate. The Company generated losses in fiscal 1996 primarily
as a result of higher than expected installation costs of the plants
constructed in 1996 and of the lower than expected quality of the output
of the facility operated by its affiliate. During 1996, the Company decided
that the technology it had acquired does not produce an acceptable quality
of output and results in a low price per unit of volume produced. It
began developing a new process to refine waste oil to produce a higher
quality output. The refinery in operation in October, 1996 closed down
in early 1997 pending the completion of the construction of the new
refinery at the Kingston plant.The new refinery is based on modern
refinery technology currently employed in the oil refinery business which
has been adapted to convert waste oil to diesel fuel. It is known as the
Yu technology. The new refinery is expected to be operational at the end
of 1997. The new refinery was engineered by Kilborn Inc. a member of the
SNC-Laalin Group. The new refinery will operate continuously which
represents a significant improvement over the batch process previously
employed.The Kingston facility is central in APF's business plan.It is
intended to provide the following:
a. Based on satisfactory production in accordance with the design criteria
present"rack price" for #2 diesel Fuel and current cost of waste oil,
the plant will generate sufficient revenue to implement APF's current
12 month Business Plan. Such assumptions may not be valid and will be
dependent on the completion of testing at the Kingston Plant.
b. Provide an environment for potential customers to see first hand all
operational aspects of a micro- refinery.
c. With the independent verification of the plant's production
capabilities, management is confident that they will have contracts
for plants to be shipped and installed in fiscal 1997/98.
d. Manufacturing of plants will be financed with a combination of
customer deposits and progress payments.
e. In addition to the operation of the Kingston Refinery it should be
noted that APF's focus is intended to be building, installing and
monitoring turnkey micro-refineries. The success of such program
is in part dependent on the results of the Kingston refinery.
THE APF TECHNOLOGY
APF holds the North American, South American, and South Pacific
manufacturing rights for the new patented process technology known
as the YU system. The new modular equipment which is transportable
has been engineered and designed by Kilbrn Engineering , a member
of the SNC Lavalin Group.A brief description of the Yu System is
that the waste oil is used to provide cooling in the distillation
column, which also serves to preheat the waste oil feedstock. The
heater is used to bring the waste oil up to pyrolysis temperature.
At this point the feedstock is separated with the oil going into a
pyrolysis chamber and the remaining sludge going into a coke reactor.l
The distillation column then completes the separation of Number
2 diesel fuel which is stored for sale; heavier fuel oil which is
recycled and light ends are separated and used as fuel to operate
the plant. |
