SAN FRANCISCO, Feb. 6 /PRNewswire-FirstCall/ -- ECO2 Plastics (the "Company" and formerly ITEC Environmental Group, ITEC.OB), the eco-friendly recycling Company that is changing the way plastics are recycled worldwide, today announced that it has closed its convertible debenture financing round (the "Financing") of $10 million. ECO2 Plastics is now fully capitalized, having raised $13 million, $3 million of which was announced previously. The Financing included an investment by Roaring Fork Capital SBIC, L.P., and investments by a number of high net worth investors, a certain number of whom were introduced to the Company by KW Securities Corporation. The Financing will be used to ramp up the first recycling plant in Northern California to full-scale operation and begin development on a second plant in Southern California. ECO2 Plastics is pursuing a strategy of owning and operating plastic recycling plants worldwide. The Company's proprietary technology positions ECO2 Plastics as the lowest cost, highest quality producer of recycled plastic flake in the industry, deploying an innovative process, which delivers significantly improved financial performance while minimizing environmental impact. "With its unique technology, strong management team, compelling business model, and commitment to revolutionizing recycling, ECO2 Plastics is an outstanding addition to Roaring Fork's portfolio of investments," said Eugene McColley, co-founder and Managing Partner, Roaring Fork Capital Management. "We see tremendous potential for ECO2 Plastics and are excited to play an important role through its next stage of growth." ECO2's typical recycling plant can produce 9,000 lbs. of clean plastic flake per hour. A similarly sized water-based plant consumes up to 4,500 gallons of water per hour, twenty-four hours a day, seven days a week, then disposes the water, chemical contaminants, paper and plastic residue back into the environment. ECO2 uses no water and delivers the same high quality recycled plastic flake without the waste or chemicals found in existing water-based processes. "ECO2's goal is to establish its clean technology as the standard for all plastics recycling in the United States and ultimately worldwide," said Rod Rougelot, CEO of ECO2 Plastics. "With this Financing we have a strong balance sheet and an aggressive growth plan that will drive the Company through its next stage of growth. We believe that 2007 will be the year that plastic recycling truly exhibits its potential through fiscally and environmentally sound operating practices." ECO2's patented and patent-pending recycling process enables the Company to be the lowest-cost producer of recycled plastic flake, affording it the highest profit margins. The Financing, combined with ECO2's higher profit margin per pound, positions the Company to grow rapidly, invest in the state-of-the-art equipment, and ride out commodity market cycles, even in volatile market conditions. "As the only recycling solution that does not use water or pour harmful pollutants down the drain, ECO2 Plastics has the technology to change the way plastic is recycled worldwide," said Lawrence A. Krause, Principal of KW Securities Corporation. "We are pleased to have the opportunity to deepen our financial and business relationship with the Company." About Roaring Fork Capital Roaring Fork Capital SBIC, L.P. is a Denver-based licensed SBIC with offices in Colorado Springs, CO and Dallas, TX. The firm focuses on addressing an underserved and highly inefficient portion of the equity capital spectrum -- orphaned microcaps. Defined as public companies with market capitalizations of $140 million or less, these companies have been neglected by the financial community. Roaring Fork Capital's management team includes Eugene McColley, co-founder and Managing General Partner, James T. Rothe is a co-founder and Managing Director, and Michael Machens, partner. About KW Securities Founded in 1980 by Lawrence A. Krause, KW Securities Corporation specializes in wealth management, and has participated in more than twenty highly diversified and highly selective investments in real estate, venture capital, natural resource drilling, and equipment leasing. About ECO2 Plastics ( www.eco2plastics.com ) ECO2 Plastics, formerly ITEC Environmental Group (ITEC.OB), is a publicly traded company engaged in PET plastic recycling. The Company's patented and patent-pending process was developed through a research partnership with Honeywell FM&T and the US Department of Energy. ECO2 Plastics is the exclusive worldwide licensee of the technology. The Company operates a recycling plant in Riverbank, California and another plant is currently under development in Southern California. ECO2's approach sets it apart from competitors that deploy water-based recycling processes. Unlike other recyclers, ECO2's process eliminates the use of water, respects and preserves the environment, while delivering the highest quality recycled plastic flake with up to a 50% lower operating cost. ECO2 Plastics is the only recycling company that can claim (i) that its plastic recycling technology has a negligible impact on the environment and (ii) is distinguishable from existing technologies when it comes to water waste and chemical contamination. Cautionary Warning Regarding Forward-Looking Statements This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) our limited operating history; (2) our ability to pay down existing debt; (3) our ability to retain the professional advisors necessary to guide us through our corporate restructuring; (4) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (5) unforeseen costs and expenses; (6) potential litigation with our shareholders, creditors and/or former or current investors; (7) the Company's ability to comply with federal, state and local government regulations; and (8) other factors over which we have little or no control.
SOURCE ECO2 Plastics