Cielo Waste Solutions Updates on Ontario Market and JV payments

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Market Cap: 409 MCAD at time of posting
Share price: 1.16 CAD at time of posting
Industry: Converting waste to renewable fuel

Cielo Waste Solutions today 17/3 2021 provided an update related to their press release dated on 9/3 2021. The company has received the entire balance of the aggregate fees of $750.000 CAD related to the 3 additional plants to be built, at no cost for Cielo, in British Columbia, Manitoba and the United States by Renewable U Energy Inc. (“RUEI”). Cielo has also paid back their largest secured lender in full, eliminating a senior secured loan of approximately CDN$3,800,000 further strengthening the balance sheet.

Further positive news was released in the update with the company stating that :

“Cielo had also announced in the March 9 PR, that RUEI was in the process of acquiring Seymour Capital Incorporation and/or its rights and obligations, which includes the right to enter into a memorandum of understanding with Cielo similar to the other RUEI memorandums of understanding for a territory in Ontario (the “Ontario Option”).  Cielo is pleased to announce that RUEI has completed this process and wishes to exercise the Ontario Option.  Cielo has received a fee of CDN$262,500 (including GST) from RUEI for the Ontario Option.  RUEI and its partners have chosen Toronto, Ontario (within a 250km radius from the outer boundary) as the site for the first Ontario joint venture facility. “

Comments were provided by both parties:

Ryan Jackson, newly appointed CEO of RUEI, stated “This is a very exciting announcement to be in one of the most populated provinces in the country and working with local partners and all levels of government.  We are looking forward to working with all stakeholders, feedstock providers, businesses, and governments at the municipal, provincial and federal levels to build a high-grade renewable fuel facility in the province of Ontario.  We cannot wait to learn more about all of the waste feedstock, and provide jobs, opportunities and economic stimulus to yet another province in Canada!” 

Don Allan, President and CEO of Cielo, stated “We are pleased to have RUEI as a JV partner and excited to build and operate even more facilities converting waste to high-grade renewable fuels.  Cielo may be an Alberta-based company but it has always been our vision to solve the extreme garbage crisis in all provinces of our great nation!  This is another monumental step forward for our Company and its ability to reduce landfills and eliminate other problematic waste.”

ESG comment: It’s very positive to see that Cielo has received all the aggregate fees for all 3 additional planned facilities at no cost for Cielo AND also for the facility in Ontario originally planned by Seymour Capital which has now merged with Renewable U Energy Inc. (“RUEI”). Cielo Waste solutions is truly working at record speed and is not wasting any time to get their expansion of 40 facilities in North America according to plan. This payment certainly reiterates the committment that RUEI has shown to fullfill its obligations for the planned Joint Venture facilities in North America.

Interesting financial projection numbers were provided yesterday in an article by stating that “Once the current 10 planned facilities are fully operational, Cielo could be generating C$170 million in EBITDA and, at a 15x EBITDA multiple, would translate into a market cap of $2.5 billion, almost five times where it is today.” What’s most interesting in this calculation is that this only takes into account 10 of the 40 facilities planned for the coming 5-7 years.


I own shares in this company personally and this is not to be considered financial advise, always do your own research!

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