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PI is a closely held corporation which manufactures
thermoplastic and other types of packaging machinery. PI holds
itself out as the world's largest manufacturer of blister
packaging machinery and as fabricating the industry's widest line
of thermoforming machinery including highly specialized
disposable medical and food packaging systems. PI also
manufactures both the Sentinel EPE and EPS Recyclers, which
recycle expanded polyethylene and expanded polystyrene.
Stewart and Storey decided to visit PI's facilities in
Hyannis, Massachusetts, to see whether the recyclers performed as
described in the offering memorandum. At their own cost, they
flew to New York where they met Winer, who provided them with
transportation to Hyannis. At PI's facilities, they observed a
demonstration of the recyclers and listened to a presentation
about the recyclers. Stewart, Storey, and 10 to 12 other people
attended a luncheon paid for by PI at which they discussed the
investment. During this trip, Stewart was told that the disposal
of plastic was expensive, the recycler was unique, the price of
the recycler was reasonable, there were no patents on the
recycler, and some recyclers had sold for prices in excess of
those in the offering memorandum. Other than Winer, Stewart did
not recall the names of the individuals with whom he spoke at PI.
The recycler demonstration convinced Stewart that the
recycler performed as stated in the offering memorandum.
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Last modified: May 25, 2011