Platinum Research Organization, Inc. (OTCBB: PLRO)
The Company that is now known as PRO was formed in 1996 with the express purpose to design and commercialize patented, high-performance lubricants and coatings. The stated business goal initially was to license the PRO Technology to select, exclusive, well-capitalized marketplaces. Company founders made the observation early on that the chemical additives used in high performance lubricants and coatings suffered from negative characteristics that were unlikely to be overcome without significant reformulation. In some cases it was simply a matter of cost and long-term availability of certain components (such as molybdenum disulfide in grease), but in other cases the barriers to improvement where much greater. That was particularly true with motor oil, which has historically relied heavily a high phosphorous additive formulation called ZDDP, which was already known to “poison” the catalytic converter and contribute significantly to automotive tailpipe emissions. The Company expected to establish a slate of innovative, high quality products that would provide equipment and machinery with increased longevity, more productive time on the job and lower maintenance costs – all without a negative impact on the environment.
PRO's patented technology enhances the anti-wear capabilities of lubricants and coatings. Its proprietary formulation and processes are protected by four U.S. patents, five U.S. patent applications, three continuation-in-part applications and several trade secrets. The company has also filed these patents or patent applications in key jurisdictions in the international market or are under protection via the Patent Convention Treaty (PCT).
The PRO technology, known as TechroBond, is positioned to disrupt large, status quo global markets, markets that are controlled by some of the world's largest corporations. The estimated global market for existing lubricant additives is $9 billion, and in early years no competitor welcomed TechroBond or its promise to replace ZDDP in engine oils. Batteries of laboratory bench tests conducted by PRO and its research partners have established that TechroBond offers significant advantages over ZDDP at much lower phosphorous and sulfur levels. Initial test results have convinced most doubters, and PRO is currently working with one of the Big Three automakers along with a global additive firm and a top 5 international oil company to blend engine oil with TechroBond to run two standardized industry anti-wear engine tests and one EPA* certified fuel economy test.
Automobile manufacturers clearly have a stake in the kind of oil that goes into their vehicles when they are delivered and throughout the life of the car or at least its life during its warranty period. To protect their interests, representatives of the auto industry, including the Japan Automobile Manufacturers Association, DaimlerChrysler, Ford and General Motors, working as the International Lubricants Standardization and Approval Committee (ILSAC) set standards for engine oil. The former Chairman of ILSAC is Dr. Michael McMillan, who recently retired after 35-years of employment at General Motors. Dr. McMillan has also agreed to serve as a Director of PRO.
This important committee is responsible for reviewing, assessing and incorporating information on a variety of issues, such as the state of current and prospective future emissions and environmental legislation, the cost, complexity and performance considerations of certain formulation strategies versus others, and coordinating the latest advancements in technology into far reaching strategies for managing oil formulation suitable for broad industry compliance and utilization. As one might expect, engine oil must be formulated and blended to exacting standards, and must meet a wide range of criterion in order satisfy rigid emissions and other standards, and must also be backwards compatible in order to accommodate older vehicles. Periodically, ILSAC introduces a new standard or specification for motor oil, with the next scheduled specification (to be known as “GF-5”) expected to be released presently for industry compliance in summer of 2010, and as the “factory fill” in 2011. The GF-5 standard is expected to be the first to reflect the initiative of the EPA in mandating reduced phosphorous levels. It is expected that industry compliance with this standard will present challenges that will be unlikely or impossible to achieve without the elimination of ZDDP and the introduction of significantly new technology - specifically - TechroBond.
PRO launched its first commercial products in 2006 in the Universal Grease market. TechroBond enhanced grease is now used commercially in the railroad industry, in railcurve applications. TechroBond is used as a substitute for Molybdenum Disulfide (MOLY) in grease, a very expensive compound that enhances lubrication and prevents performance deterioration. Initial field results have resoundingly confirmed PRO's calculations - grease formulated with TechroBond enhanced every aspect of performance, and was shown to increase lubrication by 40% to 200%. These results have now been confirmed independently by Chicago based Falex Labs, and PRO is preparing for a full commercial roll out of TechroBond formulated universal grease products, suitable for applications in automotive, railroad, construction, manufacturing, aerospace and heavy engineering applications.
Full Legal Name: Platinum Research Organization, Inc.
Stock Symbol: PLRO
Market Listing Nasdaq OTC
Cusip Number: 727664 10 4
Common Shares Outstanding: 75,000,000
Preferred Shares Outstanding: 5,000,000
PRODUCTS AND SERVICES
Platinum Research Organization, Inc. (OTCBB: PLRO)
The Company has made several revolutionary achievements in the development of lubricant chemistries associated with the PRO Technology.
Development of Fluorinated ZDDP as a superior Lubricant
The Company's initial studies have shown that fluorinated ZDDP derivatives have superior lubricating properties relative to ZDDP, and can be used at levels approaching 10-times less in oil lubricants to achieve the same level of wear protection. These are produced by reacting ZDDP with fluorinated transition metal compounds (MFx where M is Fe, Ti, Zr, Al). Fluorine can enter the structure either directly bonded to the phosphorous atom or on the carbon chain of the alkyl groups of the ZDDP. The fluorinated products of ZDDP can form strong bonds with both the metal surface as well as combine with the protective tribofilm. These tribofilms can be formed under conditions simulating the conditions in an engine. If the mechanical integrity of the films is much stronger in the presence of fluorine then it is possible to significantly reduce the amount of phosphorous and sulfur in lubricating oils.
Deposition of "PTFE-like" compositions on Tribosurfaces
Initial PRO studies also show that transition metal fluoride nanoparticles can act as catalysts to help deposit highly adherent tribofilms on the surface of metals. These MFx compounds where M is a transition metal ion serves the purpose of a catalyst for reacting with and binding low molecular weight PTFE to metal surfaces, and also helps in the decomposition of ZDDP to form tribofilms on the surface. The project investigators have extensive experience in developing these transition metal fluorides and new designer nanoparticles will be developed. These nanoparticles, by virtue of their high specific surface area, are very reactive and can assist in the formation of organofluorophosphate and organoflurothiophosphate tribofilms with enhanced tribological properties, in particular, low friction coatings.
Develop completely new lubricants that can provide improved wear resistance and lower friction coefficient
These new compositions are designed to completely replace ZDDP as wear reducing additives in engine oils. The approach here is to develop more PTFE-like tribofilms on metal surfaces, which are "self-healing" as a result of the "catalytic" reactions described above using metal fluoride catalysts.
Revolutionary Patented Technology
TechroBond has been developed by a team of scientists, Ph.D. students and chemical, lubricant and oil industry experts over a period of 10 years. The PRO Technology consists of a portfolio of three U.S. patents, five patents pending, two continuation-in-part applications, international filings in key foreign jurisdictions, and several trade secrets. The patent applications concern process parameters for the production of the catalyst or the results of the interaction of the catalyst with other additives. Management knows of no other technology in the marketplace that offers the performance attributes of TechroBond, and is not aware of any other R&D effort that has advanced to the point of the Company's successes
Only Known, Cost-Effective Solution to Reduce or Replace ZDDP
TechroBond satisfies increasingly stringent Federal and State environmental requirements for vehicle emissions by drastically reducing ZDDP. ZDDP is known to deactivate the catalytic converter and therefore is a prime contributor to tailpipe emissions. The EPA has mandated that all automobile manufacturers must certify their catalytic converters meet emission standards for 120,000 miles of operation. With current engine oil formulations using ZDDP this could be difficult. To meet these needs, the automotive industry is gradually decreasing the amounts phosphorous and sulfur, which are found in ZDDP, to help meet the EPA's more stringent CO, HC and NOx emission requirements. However, the automakers require the performance (engine protection) of the oil must be equal to or better than the engine oils currently available. The good news is that an extremely small amount of TechroBond is needed to produce equivalent or better performance than fully-formulated, GF-4 engine oils. Management estimates that TechroBond could be manufactured for $.02 per quart plus additional process and blending costs of $.01 to $.02 per quart, which is equivalent, if not less than, the cost of ZDDP. Management believes TechroBond is the only commercially viable solution to meaningfully reduce ZDDP.
Multiple, Global End-Market Opportunities
TechroBond has been tested and proven to significantly enhance the performance characteristics of engine oil blends, greases, coatings, gear oils, industrial oils, metal cutting fluids, transmission fluids, and hydraulic fluids. The Company has already commercialized TechroBond for grease applications, and the commercialization for lubricating oils is imminent. Management estimates that the addressable markets for TechroBond for just lubricants and greases worldwide, is in excess of $9 billion per year. These global markets are considered critical to the world economy, and are controlled by international companies with considerable resources and creditworthiness. Management believes that the revenues from TechroBond, therefore, should be substantial and secure. In addition, laboratory tests on other applications for TechroBond, while still early stage, show promise for potential commercialization in anti-friction/anti-graffiti for paint and coatings, enhanced flame retardency, de-icing and other critical applications.
Innovative Liquid Dispersion Differentiates PRO from Other Additives
TechroBond utilizes a proprietary patent pending "liquid chemistry" formulation that allows significantly enhanced anti-wear performance characteristics exceeding those of other lubricating oils currently available in the market, and also maintains the clarity and stability of the oil that end users typically demand. PRO's revolutionary fluorinated thiophosphate patent pending based compound was developed to replace ZDDP in engine oils. Batteries of laboratory bench tests have established that this new fluorinated chemistry offers significant advantages over the existing ZDDP chemistry at lower phosphorous and sulfur levels.
TechroBond is positioned to disrupt the large, status quo global markets for engine oils, coatings, gear oils, industrial oils, transmission and hydraulic fluids and greases. Potential customers would include global specialty chemical companies, global additives companies and global grease manufacturers. Lab tests on TechroBond conducted by one of the Big Three U.S. automakers indicated that even with a reduction of phosphorous to 0.01%, engine oils utilizing TechroBond consistently perform as well as – and in many tests, better than – the engine oils currently marketed to the public with 0.08% phosphorous. The efficacy of TechroBond has been repeatedly tested and proven in a variety of laboratory tests, and PRO is currently working with this Big Three U.S. automaker and a global additive firm to blend engine oil using TechroBond in order to run two industry anti-wear engine tests and one EPA-certified fuel economy test.
MESSAGE FROM CEO
Platinum Research Organization, Inc. (OTCBB: PLRO)
I have had the distinct pleasure of leading the development of TechroBond as CEO of Platinum Research Organization (PRO) for the past ten years.
The original inventor of TechroBond was F. Conrad Greer, who I met in 1989 and who convinced me that PRO could develop new workhorse additive ingredients for greases, gear oils, hydraulic fluids and motor oils that would make them work better and last longer than anything on the market today.
It was already known that ZDDP, the chemical additive package that has been used for 60 years to improve the anti-wear and anti-corrosion properties of motor oil, had a significant negative impact on the environment, but the full extent of the problem was not yet understood. ZDDP contains very high levels of phosphorous and sulfur, both of which contribute significantly to automotive tailpipe emissions when burned in the engine. Phosphorous also causes “glassy” deposits to build up inside an automobile's catalytic converter, eventually hampering its ability to reduce tailpipe emissions.
It was with a stated mission of developing a range of innovative chemicals to solve these problems and replace the less-than-perfect additives that had been used in lubricants and coatings for many years that PRO was established. And it was from this ten-year collaboration that PRO's patented TechroBond was born. Since then, we have worked to impact a global market by offering a solution through innovative leadership and product disruption: not only identifying a key problem that the automotive world faces, but offering a solution at the same time. While this has often caused the controversy that change brings, it has allowed PRO to forge partnerships and business networks in the U.S., Europe, Asia and South America.
As a result, TechroBond's potential has not gone unnoticed by some of the top executives and leading corporations in America. PRO enjoys the participation of an elite group of seasoned executives on its Board of Directors . We selected this group because, together, they bring PRO diversity, global experience and high-level relationships in industry, commerce, law and government. The members of PRO's Board of Directors include: Chairman, Mr. Thomas G. Plaskett, the former CEO of Pan Am and Continental Airlines, current chairman of Novell Corporation, and a director of Radio Shack Corporation; Mr. Allan McArtor, current chairman of Airbus Industries North America; Dr. Michael McMillan, former chairman of ILSAC and a director at General Motors; Mr. Arnold Burns, chairman of Quanstar Group and former deputy attorney general at the Department of Justice; Mr. Ben DuPont, chairman of yet2.com and DuPont family heir; and Mr. Theodore Brombach, a former Managing Director of Morgan Stanley.
The company also benefits from alliances with some of the world's largest chemical and petrochemical companies, a top-five oil company and end users such as automakers, aircraft manufacturers, metal producers, and other companies which recognize the potential of TechroBond for several alternative applications.
I invite you to join us as we introduce TechroBond commercially, and share in our success as we work with industry leaders to transform some of the world's most commonly used compounds into more efficient, better performing, more environmentally friendly products to satisfy the demands of the market today and for years to come.
Sincerely,
John T. (Cork) Jaeger, Jr.
Chief Executive Officer
MARKET
Platinum Research Organization, Inc. (OTCBB: PLRO)
PRO has taken advantage of alliances with some of the world's largest chemical and petrochemical companies, a "top 5" global Oil Company, end users such as "Big Three" automakers, aircraft manufacturers, metal producers, and other companies who recognize the potential of TechroBond for several alternative applications. The Company enjoys excellent relationships with industry leaders in all addressable markets for its technology, and is currently exploring several avenues to expedite the exploitation of the large global market opportunity available for TechroBond.
In addition to the worldwide lubricants sales figures detailed in the pie chart and table in the following section, a leading industry publication* identifies 2005 market size for the combined "industrial coatings and specialty paints" as in excess of USD $18 billion dollars. When added to the lubricants figures, it can be fairly stated that the total revenues generated by products that are likely to be enhanced by TechroBond are in excess of USD $56.8 billion, and are probably significantly larger, given that several key industrial product segments (such as railroad, marine engine and other industrial engine oils) are excluded from these figures.
TechroBond is uniquely positioned to enhance key performance characteristics or cost equations of products in each of its identified addressable markets. In some cases, TechroBond may incrementally improve an existing range of products or make it less expensive to manufacture. In other cases, the addition or substitution of TechroBond may completely transform a product into a deeply functional, cost effective, environmentally friendly replacement product that is significantly enhanced from its predecessor in many regards. The following sections provide an overview of the role TechroBond is likely to play in each of its addressable markets.
Engine Oil
The most prolifically used additive in motor oil is the chemical formulation ZDDP , with over 30 million pounds used in the United States alone each year. However, regulatory steps are currently being undertaken to eliminate its use as a motor oil additive. Although ZDDP works to protect engines very effectively, it has several other effects which are quite detrimental to the to its overall standing as a viable product. The use of TechroBond as a low phosphorous, clean burning, low friction alternative to ZDDP may allow auto manufacturers, oil companies, formulators and others to satisfy both the regulatory demands to incorporate less phosphorous in oil formulations and reduce emissions, and their own objectives of lowering friction and improving performance and fuel efficiency.
Grease
TechroBond is used as a substitute for Molybdenum Disulfide (MOLY) in grease, a very expensive compound that enhances lubrication and prevents performance deterioration. Initial field results have resoundingly confirmed PRO's calculations - grease formulated with TechroBond enhanced every aspect of performance, and was shown to increase lubrication by 40% to 200%. These results have now been confirmed independently by Chicago based Falex Labs, and PRO is preparing for a full commercial roll out of TechroBond formulated universal grease products, suitable for applications in automotive, railroad, construction, manufacturing, aerospace and heavy engineering applications.
• Metal Cutting Fluid
• Hydraulic Fluid
• Gear Oil
• Lubricant Additives
• Industrial Coatings and Specialty Paints (The Sleeping Giant)
• Railroad and Marine Engine Oil
• Other Industrial Engine Oils
HISTORY
Platinum Research Organization, Inc. (OTCBB: PLRO)
On or about July 1, 1996, Platinum Research Organization, J.V. ("PRO JV") was created at a Texas Joint Venture Entity. On or about January 1, 1998, PRO JV was converted to a Texas Limited Partnership called Platinum Research Organization, LP ("PRO LP 1"). On or about May 17, 1999 PRO LP was converted to a Texas Limited Liability Company called Platinum Research Organization, LLC ("PRO LLC"). On or about April 28, 2004, PRO LLC was renamed Platinum Research and Development, LLC and a new Texas Limited Partnership was created called Platinum Research Organization, LP ("PRO LP 2") at which time PRO LP 2 acquired the intellectual property. In October 2006, 100% of the Partnership Interest Holders entered into a Contribution Agreement with Platinum Research Organization, Inc. (formerly known as NorthTech Corporation), a publicly traded Corporation organized under the laws of the State of Nevada. Under Contribution Agreement, the Partnership Interest Holders have agreed to Contribute 100% of the Partnership Interests to Platinum Research Organization, Inc., in exchange for class A common shares in the Company. The surviving entity is Platinum Research Organization, Inc., a public company whose shares trade on the Nasdaq OTC stock market under the symbol PLRO.
With all the Big Wigs at this Company, the Stock has tanked in the past years. In addition the Stock is now delinquent. The symbol was just changed to PLROE this week.