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partner had no prior experience in marketing recycling or similar
equipment; (4) the limited partners would have no control over
the conduct of the partnership's business; (5) there was no
established market for the Sentinel recyclers; (6) there were no
assurances that market prices for virgin resin would remain at
their current costs per pound or that the recycled pellets would
be as marketable as virgin pellets; and (7) certain potential
conflicts of interest existed. The private offering memorandum
also informed investors that the business of the partnership
would be conducted in accordance with six simultaneous
transactions.
The private offering memorandum stated that the projected
tax benefits for the initial year of investment for an investor
contributing $50,000 would be investment credits and energy
credits in the aggregate amount of $86,328, plus deductions in
the amount of $39,399.
The offering memorandum also included a discussion of the
tax aspects of the transactions and a tax opinion prepared by
WMDI concerning the tax issues involved in the Plastics Recycling
Program.
Also included in the offering memorandum were the reports of
the “F&G evaluators", Samuel Z. Burstein (Burstein) and Stanley
Ulanoff (Ulanoff).
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Last modified: May 25, 2011