Cielo Announces Cdn $4M Increase to Binding Letter of Intent for Cdn$10M Convertible Loan
March 15, 2021 (Source) — Cielo Waste Solutions (CSE:CMC), (OTC:CWSFF), (CNSX:CMC.CN), (WKN:C36) (“Cielo” or the “Company”) is pleased to announce that the previously announced binding letter of intent, from March 3, 2021, to obtain from one or more lenders (the “Lender(s”)), a non-interest bearing, unsecured convertible loan of CDN$10 Million (the “Original Loan Amount”), has been amended by increasing the amount of the Loan by CDN $4 Million (the “Additional Loan Amount”) to a total of $14 Million (the “Loan”).
The net proceeds of the Additional Loan Amount will be used to double the Company’s existing facility in Aldersyde, Alberta (the “Aldersyde Facility”) from 1,000 lph to 2,000 lph and for engineering work on the 100% Cielo-owned facility in Edmonton, Alberta, once the site has been acquired. Cielo will have the discretion to use the balance of the funds as needed, for working capital purposes.
The Loan, including the Additional Loan Amount, is non-interest bearing and unsecured with a term of 12 months (the “Term”). Cielo will be entitled to repay the Loan at any time during the Term without penalty. During the Term, until maturity or such early repayment, the Lender(s) will be entitled to convert the Original Loan at CDN $1.02 per share and the Additional Loan Amount at CDN$1.25 per share. The Additional Loan Amount is also subject to transaction fees equal to CDN$280,000 and commission to a third party of CDN$320,000, in line with the fees and commissions payable with respect to the Original Loan Amount. Cielo believes these fees and commissions are well in line with industry standards and eliminate high interest payments and saves Cielo millions in debt payments without significant dilution of the company shares with an exceptional conversion strike price.
Don Allan, President and CEO of Cielo, stated, “Cielo has hired a 3rd party Real Estate Appraisal company and is narrowing down the site selection in Edmonton and we hope to have the land purchased in the next few weeks. This additional CDN$4M will also allow us to start the engineering and permitting process in Edmonton while continuing work on the Dunmore facility outside Medicine Hat, AB, and, with the increase, Cielo now sufficient funds to enable us to double the production capacity at the Aldersyde Facility. Cielo is grateful to be in a position of financial stability with good momentum. Cielo has received attention from the financial community and, at present, we are fielding calls of interest from numerous companies and firms wanting to help take our company to the next level. 2021 has started extremely positive for Cielo and its shareholders and we believe the momentum will continue as we’ve reduced the hurdles in front of us.”
On behalf of the Board of Directors of the Company,
Cielo Waste Solutions Corp.
Don Allan, President / CEO / Director
About Cielo Waste Solutions Corp.
Cielo Waste Solutions Corp. is a publicly traded company with its shares listed to trade on the Canadian Securities Exchange (“CSE”) under the symbol “CMC”, the OTC Markets Group, on the OTCQB, under the symbol “CWSFF” and the Frankfurt Securities Exchange under the symbol WKN: C36. Cielo is a waste to renewable fuel company with a game changing technology engineered to help solve the world’s garbage crisis. Cielo’s technology transforms landfill garbage into renewable high-grade diesel and kerosene (aviation jet and marine fuel). Cielo’s proven and patented technology is currently being deployed in the Company’s Aldersyde Facility, Alberta, where wood waste is currently being converted into renewable fuels.
Cielo is headquartered in Alberta, Canada with plans to build and operate green facilities across North America as well as globally.
Cielo has already begun expanding its footprint by signing multiple Memorandums of Understanding pursuant to which third parties are in negotiation with Cielo to build, at no cost to Cielo, Joint Venture Renewable Diesel Facilities in Grande Prairie, Calgary, Medicine Hat and Lethbridge, Alberta as well as in Nova Scotia. Each JV Facility is projected to cost, depending on throughput approximately $50 million to build, commission and place on production. Cielo will be the general contractor and operator of all the proposed JV Facilities. The feedstock that will be used in the Company’s green facilities is the world’s most available and inexpensive feedstock – garbage; including household, commercial/ construction/demolition garbage, used tires, railway ties and telephone poles as well as all types of plastic that currently cannot be recycled.
Cautionary Note Regarding Forward-looking Statements
This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes.
Forward-looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. CIELO is making forward looking statements related to: entering into the letter of intent with respect to the Loan; the use of proceeds of the Loan, including both the Original Loan Amount and the Additional Loan Amount; the amount and sufficient of funds required to complete the upgrade of the Aldersyde Facility from 1,000 lph to 2,000 lph; the purchase of the site in Edmonton, Alberta and next steps regarding engineering; the financial stability of the Company; and generally the next steps and momentum of the Company’s progress. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. The CSE and the OTCQB have not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
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