Highly Dubious Stock Offering

The recently issued prospectus dated August 18 makes it clear that FOY's prospects are tied to a very great deal to the Company's ability to (1) successfully build and operate the proposed 1,500 TPD Waste Plastics to Fuel (WP2F) facility in the US through the proposed joint venture with GEP Fuel & Energy Indiana, LLC (GEP) and (2) successfully build and operate three WP2F facilities in the UK and one in the Netherlands. However the financing for both of these projects is highly dubious at best.

In the case of the US facility, GEP is obligated to procure the debt financing for the Production Facilities (see page 128 of the Prospectus). However, GEP appears to be a shell company that was incorporated only in 2014 and likely has nominal assets and whose Managing Members have no demonstrated in raising such funding. The ability of GEP to raise the significant capital - likely well in excess of US$100 MM - for the WP2F facility, as well as for the waste plastics processing plant that also needs to be newly constructed is Highly Dubious as is the whole GEP joint venture.

In the case of the UK and Netherlands WP2F facilities, the viability of such projects appears to be highly dependent on the ability of FOY to raise the US$90 MM in debt financing which is proposed to be arranged by a US based firm by the name of Structured Growth Capital, Inc. (SGC) of uncertain reputation and capabilities. While FOY entered into a Term Loan Agreement with SGC on June 7, the Prospectus discloses that a condition of such Term Loan Agreement is that IGE UK (the FOY subsidiary) deposit at least USD$100 MM in "blocked funds" in a custodial account in SGC's name (see page 131 of Prospectus). Nowhere in the Prospectus is there any disclosure of how FOY proposed to raise the USD$100 MM to deposit in the custodial account in SGC's name. This requirement appears to render Highly Dubious both the proposed SGC financing and the WP2F facilities in the UK and Netherlands.

A thorough and critical review of FOY's proposed projects in the US, UK and Netherlands raises very serious concerns about the ability of the Company and its various partners (ie, GEP and SGC) to raise the capital necessary for these projects. If these projects cannot be funded as I suggest, then FOY prospects are greatly diminished.