EXCLUSIVE INTERVIEW WITH DON ALLAN CEO OF CIELO WASTE SOLUTIONS

Ticker: CMC.CN / CWSFF
Listings: Canadian Securities Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 287 MCAD at time of publication
Share price: 0,74 CAD at time of publication
Industry: Converting waste to renewable fuel

ESGFIRE had a sitdown yesterday 27/5 with Don Allan, CEO of Cielo Waste Solutions to ask a few questions on the latest press release , the ongoing activities such as TSX uplisting, Desulphurisation and also what lies ahead. We hope you’ll enjoy this interview as much as we did !

ESG: Hi Don and welcome to this interview with ESGFIRE!

Don: Thank you!


ESG:First of all we have to ask, do you have any further comment in regards to the article by “Night Market Research”?

Don:
Yes, we think our investors, before blindly believing what this “firm” writes, should check their background. Go to their website and look at how they make money, they basically write negative reports and short stocks. They seem to do this by telling a pile of untrue statements and bet money on this. We know some shareholders would like us to reply to this “report” in detail but our management is focused on moving this company forward and we don’t want to give them too much attention. We believe our press releases and advancements speaks for themselves.

 ESG: Can you provide some details around the Press Release you just sent out on 27/5 regarding the Edmonton land purchase and what it means to Cielo Waste Solutions?

Don:
So, we have been looking for an ideal place for our Edmonton facility for quite some time now. I think we have finally nailed THE best site in perhaps, all of Canada. The reason is this is the number one hydrocarbon region in all of Canada that has over 40 billion dollars worth of infrastructure we can sell to. Close to this facility we have Canadian Pacific railways, CNM rail, and a couple of miles away we have Shell Oil refinery which they use to blend for the renewable fuel mandate ordered by the Canadian government. Finally, we are not far away from Suncor, Imperial and a lot of other potential clients. We have more than 80 % of our customers in the area of this refinery site for this facility.

What’s also great is this facility has a lot of infrastructure so we are able to shorten the original time plan from 24 months to maybe 18 months or less until commissioning. This facility will be our showpiece for customers around the world, as its only a couple of kilometers from an airport and near international airport. We are already in talks with the municipality of Ft. Saskatchewan for permits and our environmental report is up to date. We are looking to commissioning Edmonton and Dunmore facilities maybe in Q3 of 2022.

ESG: There has been questions in the investment community regarding large offtake agreements for sales. Can you tell us when we will see this?

Don:
Our  Desulphurisation process being completed is a big part of this. We are in talks with major airline and marine companies, major refineries and off highway  buyers, such as oil and gas exploration and  railway companies. They need to get samples of our fuel to see that it meets their standards which I’m sure it will. We can sell our fuel as it is to Jet and marine sector but for the highways we need the desulphurisation complete. Our fuel still needs to be tested by engine manufactures for airplanes such as Boeing and Rolls Royce. We have hired the number 1 certification company in North America to do this testing which only a handful of companies are capable of , unfortunately we cannot name them as of now.

I want to reiterate we can sell the fuel today as is but we would not get top dollar for it. Once our desulphurisation process is done we have a 900 000 liter order to begin filling. We do have customers who want to buy our fuel as well as an offtake agreement and they will get a sample to see if it meets their criteria or if we need to change anything once the desulphurisation is complete. I cannot provide a timeline for when the fuel will be approved by all our sectors but its an ongoing process and I’m confident we will meet all requirements.

ESG: Cielo seems to have many great opportunities ahead of themselves.  Can you identify what path  you feel may be your best opportunity to use as your primary growth strategy?

Don: There are many interesting roads to growth and we are currently working  with paper mills to taking their pulp sludge and environmental companies covering human solid waste from municipalities as feedstock. Seeing as our growth plan is to build 40 facilities in the next 5-7 years our goal is to help municipalities turning their cost of waste into a  revenue stream for them. Landfills actually take, on average, 25 % of the budget from municipalities. We will turn this into a revenue stream for them.
Some municipalities also have 2030 targets to be carbon neutral and 2050 to get rid of landfills and they wont be able to reach these without us (Cielo). Cielo process runs on green electricity, so  we can help them recover the methane and have them turn it into green power.

ESG What , if anything, will Cielo do with the existing methane gas coming off the municipal landfills?


Don:
Methane is one of the most harmful of all greenhouse gases and 25 % of the world’s  greenhouse gas comes from landfills. With third party contractors we can recover the methane, which is a syngas, the municipality can then put this into a turbine and use it as electric power.  We would then buy the power from them. The municalities would also recycle all the metals, glass,  copper all  with value they can collect and sell. The feedstock that we can use from their landfills we turn it into renewable diesel which the municipality can then put into their commercial and transportation vehicles for example.

ESG: Why does Cielo pay a tipping fee for feedstock?

Don:
We pay a tipping fee because it costs money to recycle. If you look at big contractors like GFL there is no way you get recycled material for free but it really comes down to pennies on the liters as we produce. Instead of paying $1.25 on canola or other agricultural feedstock we have a much cheaper feedstock.

ESG: Does Cielo disrupt any current other business models in this process?

Don:
No we are actually complementary, when it comes to landfills there is so much garbage and we are giving municipalities a solution by turning a deficit into revenues. Much of the renewable fuel in Canada today is imported so we have the ability to put in high quality renewable diesel fuel instead of using other sources such as crops.

ESG: How will this strategy play out in Edmonton, your most recent facility location?

Don:
We are using multiple feedstocks and we have signed 5 mous with feedstock providers already. The feedstock is everything from municipal waste to landfills , waste from logging industries (wood) , sawmills , sewage as possible feedstock , plastics, we luckily have enough feedstocks for 20 plants at our Edmonton facility. We will build infrastructure for 3 plants as a start . One plant can produce 4000 Liters per hour ( 1056 gallons per hour) . So the first goal will be 12000 liters per hour (3170 gallons per hour) for Edmonton but ideally I would like to get this number up to 24 000 LPH (6340 gallons per hour).

ESG note: A 12000 LPH facility running at 20 hours a day for 7 days a week for 11 months would equal close to $135 million in annual revenues assuming a 1,67 CAD price per liter for the Edmonton facility alone not taking into account any revenues from potential emissions rights.

ESG: What is the actual Greenhouse gas emissions impact of Cielo’s renewable diesel compared to regular diesel and gasoline?

Don:
We have actually hired the number 1 company in North America to find out the actual  GHG savings and we will likely be able to update the market on this in approximately 6-8 weeks.

If Canada goes forward with their 170 dollar tax per tonne of green house gas emissions we could make more money off these  emission rights than selling the actual fuel. We are likely the only company who likes this tax. However we do not count in any subsidies in our business model because you never know what happens with politics. Our revenue numbers NEVER include GHG emission rights, so this COULD potentially be a big and solid revenue for us.

ESG: How are things going with the planned uplisting to the TSX Venture?

Don:
We have given  TSXV everything they’ve asked for and they have a meeting on June 3rd to put Cielo in front of them. We should hopefully be trading, approximately the middle of June unless the exchange has more questions for us to answer

ESG: How confident are you that your planned facilities with Renewable U Energy Inc will be financed on time?

Don:
We talk to them (RUEI) everyday. I can tell you everything seems to be going extremely  well. They are keeping up with their invoices to us and the  Dunmore facility is being paid and I don’t think it will be difficult to finance.
I have no doubt in my mind that they can do the financing that they are claiming.

ESG: Can you give us an update on the desulphurisation process?

Don:
Yes,  90 % of the equipment is on site today and our crews are working 7 days a week. We still have some work to do such as electrical connections and welding but we are hoping to be commissioning between mid to end of June.


ESG:
Do you have any further plans how to finance cielos growth for your  fully own planned  facilities?

Don:
We currently have a number of term sheets looking to finance the Edmonton facility. We are currently  working with some of the largest banks in the world and we are likely looking at 50-60 % bank financing for the first 100 million dollar phase ( out of which $12 million has been covered by the land purchase ).

We expect debt rates to be reasonable going forward and it wont take long until we are in higher revenue range and at which point we will be able to get even better debt terms and less need for equity financing.  We will likely have a lot of revenue to finance our growth down the line.

The financing looks like this:
-Edmonton first phase, 100 million dollars, infrastructure for 3 sites ( 12 million is done by the land purchase)
-second phase will be 30 million
-third phase 30 million

The second and third phase we will likely will be using cashflow from the first phase.
For the first 100 million dollar phase minus the 12 million we have done from the land purchase we are likely looking at 50 % debt and 50 % equity. The debt rate will most likely be in the single figure range, definitely not double range.


ESG: Thanks for joining us today Don!

Don: It was my pleasure!

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

CIELO WASTE SOLUTIONS SIGNS AGREEMENT FOR PURCHASE OF LAND FOR SECOND FULLY OWNED FACILITY

Ticker: CMC.CN / CWSFF
Listings: Canadian Securities Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 299 MCAD at time of publication
Share price: 0,78 CAD at time of publication
Industry: Converting waste to renewable fuel

Cielo Waste Solutions has today announced today that they have entered into an agreement to purchase an approximately 60 acres of land in fort Saskatchewan, a municipality 25km from Alberta’s capital city of Edmonton. 

The land has a site built on it by a global construction and fabrication company from Belgium. The site includes “a 31,750 sq ft building and 35 acres that is graveled and improved, including fence, power and a yard compacted to 10 tons per square foot.  The Land was developed in 2015 for approximately CDN$21M in the Alberta Industrial Heartland, Canada’s largest hydrocarbon processing region” . Management of Cielo emphasizes that the site has advantages in the global market such as access to global markets through the two largest railway lines in Canada and pipelines to deliver fuel directly to their off-take clients. A large part of construction is also as mentioned already built which will make the process of completing the plant more time efficient and likely ahead of the normal time plan.


The purchase is priced at 13 MCAD . The press release states the financing as follows:
“Cielo is also pleased to announce that it has accepted a binding term sheet for the financing of the balance of the purchase of the Land.  First Choice Financial (“FCF”) has agreed to deliver a loan to the Company of $12,000,000 for the purchase (the “Loan”).  The Loan will mature after 2 years and is subject to simple interest at a rate of 6% per year, payable monthly throughout the term of the Loan and can be extended by the lender.  Cielo will also issue 12,000,000 non-transferable bonus warrants to FCF, exercisable for a period of 36 months at an exercise price of CAD $1.00 per share.  Cielo will be entitled to repay the Loan at any time without penalty.  Other than certain expenses of FCF associated with the Loan, no additional fees or commissions will be payable to FCF or any finders.  

The Loan will be secured by all of the assets of the Company, including charges against the land and facilities in Fort Saskatchewan and Aldersyde.  The Loan is also subject to certain customary conditions. Closing is anticipated to coincide with the completion of the purchase of the Land.”

Don Allan, CEO of Cielo Waste Solutions stated in the press release , “We are pleased to have secured this land, which is in proximity to “Refinery Row”, a nickname given to this location in Fort Saskatchewan because of all the major blending refineries that we believe will be the primary customers buying our fuel for mandated renewable blending requirements in Canada.  With the amenities and infrastructure in place, we believe Cielo will have the ability to build our second 100% owned facility in a timely manner”.  Mr. Allan continued: “We believe the debt financing is favourable and allows flexibility for early payout. We are very pleased with FCF’s term sheet and we appreciate their belief and support in Cielo. We will continue our focus on installation of the desulfurization equipment and increased production on our Aldersyde facility and begin the building of this new plant as per our projected timelines.  Once both facilities are operating, the Company is expected to enjoy a significant increase in revenue and earnings and paves the foundation for future growth.”

ESG comment: We see the purchase of land as a great agreement that will accelerate Cielo’s expansion, especially when we keep in mind that a large part of the construction is already built. This is a huge step into building their second 100% owned facility. Something that may not be obvious to everyone is that getting a 6% interest rate loan for a small revenue company is very well done. And while there are warrants attached they are given at 25% higher than market price today and once exercised it also puts ANOTHER $12M into the company’s bank accounts.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

DEBT CONVERSION IMPROVES BALANCE SHEET FOR EWI

Company: Environmental waste international
Listings :TSXV , US OTC
Ticker: $EWS $YEWTF 
Market cap at time of publication: $59 MCD
Stock price at time of publication: 0.235 CAD
Business: Tyre and waste recycling through reverse polymerization
TAM Market size: 158 billion $
Comparable peer : Scandinavian Enviro systems $SES
Website: https://www.ewi.ca/

Environmental waste international has today announced a debt conversion which considerably lowers the companys debt and improves the balance sheet. The total debt converted amounts to of $1,282,017 CAD and is settled with EWI Investors LLC (of which Robert Savage is the Managing Member and a director of the Company) and Bob MacBean, Chief Executive Officer of the Company.
The debt will be settled through the issuance of an aggregate of common shares at a price equal to the higher of $0.23 or the volume weighted average trading price of the common shares for the ten (10) days following the date hereof. The debt conversions will be subject to a statutory hold period of four months and a day from the date of issuance . The debt conversion requires the approval of shareholders of the Company because EWI Investors, LLC will become a new control person of the Company since it will own over 20% of the Company’s common stock

ESG comment:
It’s very positive to see the balance sheet improving even more for EWI, the company should with this action being approved be even closer to becoming debt free since the JV agreement with torreco also reduced the debt of the company. This puts EWI in an even better economic shape for the expansion planned ahead. EWI has 5 facilities planned or being built at the time of this publication.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.





RECORD SALES IN Q1 FOR VICINITY MOTORS +588 % INCREASE

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,BUSXF at US OTC
Market cap at time of publication: $187 MCAD
Stock price at time of publication: $6.35 CAD ( reverse split price 2.11 CAD)
Evaluation: ~2.7 X sales for 2021 *
Business: Leading supplier of electric, CNG, gas and clean-diesel buses
Comparable peer : Greenpower Motor , Market cap $378 MCAD
Peer evaluation: 27 X sales for 2021
Website: https://www.grandewest.com/

*Assuming sales of 70 MCAD for 2021 which is equal to 200 buses sold for 2021.

Vicinity Motors corp yesterday (17/5 2021) reported their results for Q1 2021 and the numbers are IMPRESSIVE to say the least.
Here are some of the highlights:

  • Revenue grew 588% to $27.3 million in the first quarter of 2021, as compared to $4.0 million in the same year-ago quarter.
  • Delivered 67 buses for the three months ended March 31, 2021, as compared to 6 buses for the three months ended March 31, 2020.
  • Received orders for another ten Vicinity Lightning™ EV buses with expected delivery in 2021.
  • Entered into a strategic U.S. distribution agreement with ABC Companies, a leading provider of motorcoach and transit equipment in North America, to distribute the manufacturer’s Vicinity™ heavy-duty vehicles throughout United States.
  • The State of Washington and New Mexico selected Vicinity buses in a statewide purchasing contract that gives State transit agencies the right to purchase directly from the Company’s diverse bus portfolio.
  • Appointed respected industry veteran, prominent Canadian transit leader and former CEO of BC Transit, Manuel Achadinha, as Chief Operating Officer.
  • Announced strategic partnership to explore deploying Exro Technologies’ enhanced powertrain system into Vicinity’s next-generation electric bus fleet, providing high-performance and extended range.

    ESG Comment: Vicinity Motors has truly had a record speed development in 2020-2021 as our latest management interview showed. Vicinity Motors is one of the fastest growing electric vehicles bus companies that are trading on the public market , yet they are also among the most undervalued compared to peers such as Lion Electric and Greenpower Motor.

    As stated Vicinity Motors recorded a record increase of 588 % in revenues totalling 27.3 million CAD this first quarter , compare this to Lion Electric ,valued at 3.1 billion USD, which reported only 6.2 million MCAD in revenues for Q1 (512 % increase). We think this big difference in valuation is partly due to the fact that Lion Electric was brought to the market at a much higher valuation, due to being a SPAC, and also that Lion Electric is trading on the Nasdaq, which Vicinity Motors also will be doing shortly. Vicinity Motors also showed a net income of 2 million CAD and an EBITDA of 2.6 million CAD for the first quarter, putting the company in profitable territory.

    Management seems very confident that the company is heading in the right direction and ESGFIRE remains confident in keeping Vicinity Motors as our top pick for the electric vehicles sector.

    To conlude we leave you with the comments on the Q1 2021 report from CEO William Trainer:

“We are leveraging our strong momentum to accelerate the launch of next-generation electric vehicle (EV) products, including our breakthrough Vicinity Lightning™ EV, as well as other exciting, to-be-announced EV opportunities we are pursuing in the background. The land-grab for EV market share is underway and we are well positioned to gain traction through our longstanding partnerships with North American transit agencies.

“I expect to see robust year-over-year growth throughout the remainder of 2021, empowering our drive to create a more sustainable public transportation system. I look forward to providing our shareholders with further updates in the near-term as we launch new products, announce new transit agency customers and successfully execute upon our business plan,” concluded Trainer.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

EXCLUSIVE INTERVIEW WITH CEO OF VICINITY MOTORS

Company: Vicinity Motor Corp(formerly Grande West Transportation )
Listings :TSXV , US OTC SOON to be up listed at Nasdaq
Ticker: VMC.V (previously BUS ,BUSXF at US OTC
Market cap at time of publication: $154 MCAD
Stock price at time of publication: $5.23 CAD ( reverse split price 1,75 CAD)
Business: Leading supplier of electric, CNG, gas and clean-diesel buses for
both public and commercial enterprise use in the U.S and Canada
Comparable peer : Greenpower Motor , Market cap $378 MCAD
Website: https://www.grandewest.com/

Vicinity Motors, the top pick for ESGFIRE in the public transportation for Electric vehicles. They are on a successful path to entering the large market in the United States. The company is currently trading at 3X projected sales for 2021 compared to 25X sales for competitor Greenpower Motor. Vicinity Motors already has an impressive market share of their domestic Canadian market and now aims to take advantage of the huge growth for demand in electric vehicles for the public transportation market. We have previously covered this stock in multiple posts. We decided to have an interview with the CEO William Trainer ( 3/5 2021)  to hear how he think the company is progressing on their goals:

ESG: Welcome to this interview with ESGFIRE William!

William:
Thank you!

ESG: Can you tell us what the status is for Vicinity Motors with the upcoming Nasdaq uplisting?

William:
We are pushing hard to ensure we are listed as soon as possible. We will announce updates as they are publicly available. This is a priority for management

ESG: What’s the Status on the new production facility in the United States?

William:
It’s going very well, we are working closely with the state of Washington. We have applied for grants and the local government has been very receptive and welcoming to us. We anticipate that the facility should be in production for Q1 2022.

ESG: What number of buses are you aiming on delivering for 2021?


William:
We aim to deliver 150 – 200 units in 2021. Lead times are between 8-12 months from order so any new orders we receive now will be delivered in 2022.

ESG comment: A delivery of 150-200 Units would equal about 52 million -70 million USD in revenues for 2021.

ESG: You have a potential revenue stream of 50-55 million dollars for 2021 which is 100 % more than what the company made in 2020.
Do you foresee that this growth is likely to remain at 100 % year to year and if yes for how long?

William:
Our new factory in Washington can easily produce 1000 buses a year at full capacity ( Equalling revenues of around 350 MUSD/year). We want to get to this full capacity quickly.Right now we are building our backlog to get the factory to full capacity, We have a lot of winds pushing us forward quickly in the United States with good momentum and a US factory helps a lot. We have qualified to sell to many new states already and we are in the process of new bids. We also aim to sell in Iowa, Missisipi, Georgia and getting sales people to gather the orders. We have been very successful in Canada and we are sure we will be successful in the United States too.

ESG:What do you think is the reason that  your new EV buses are gaining massive interest ?

William:
We can barely keep up with all the inquiries we get and the easy answer to that question is that we have always built exactly what the customers wants.  We are not trying to copy anyone instead we have designed our own purpose-built designed EV shuttle bus.

For example we saw a need for a mid-size buss for the industry  to be able to pick up people in residential areas so we listened carefully to our customers to deliver exactly the bus  they wanted such as a mid size low floor user friendly bus. Our buses get people off the road with their cars and make it more comfortable to commute. When it comes to our electric bus model we started with a clean diesel and compressed natural gas bus (CNG) . We saw there was a transitioning coming into electric vehicles so we wanted to be able to deliver the bus which was best in class at the best available price and that’s exactly what we have done. We are building 25 electric buses right now out of which 15 are already sold and the other 10 are going to be used as demonstration buses for our sales partners in Canada and the United states.

When we look at new models we look at what the automotive industry does. They look at producing 1 million vehicles of a new model and that’s the way we try to think.
We have a battery pack from our great supplier BMW which is integrated by our other partner Lion E-mobility. This battery pack allows is only 7 inches (18 cm) thick so we can put it in the low floor level which makes excellent low centre of gravity.

We also have onboard charging just like a Tesla car has so there is no need for expensive charging infrastructure for our customers.
Finally we have a costing of components which is highly efficient. We also put hydraulic breaks on our buses so the driver does not need commercial experience.

ESG: What is the pricing on your EV buses compared to competitors?

William:
Our buses charges up very easy on any standard grid and cost around 350 000 USD compared to 1 million USD for our competitors who have to put their batteries on the roof of their buses which also makes them very top heavy.

ESG:  What competitive advantage do you see that vicinity motors has over competitors such as NFI, Proterra etc?

William:  Our buses are more user friendly and a lot better priced. We are a smaller company than most of our competitors , we are therefore quicker to react to customer needs and we can react more quickly in line with customer demands. We have designed all our buses using our in-house engineering team and then working with industry leading teams like LION Smart and Hindujatech. We focus on customer service, as it’s important to take care of your customer so they are happy with your service. That way we often get  recurring orders from our existing customers.

ESG: How can your buses be so affordable in comparison to competitors?

William:

We are definitely the best price compared to competitors and this is because we have developed all our own software and internal communication. When we buy an electric component we embed it into the vehicle. If we were to buy our components off the shelf they would cost 650 000 to 700 000 USD. Since we design everything in house we are super competitive.
To give you an example we offer our standard clean diesel bus to LAX airport shuttle for 250 000 USD. Now we can offer them an electric solution for 350 000 USD which is a no brainer since the maintenance cost is lower for this vehicle , you’re not buying fuel and its also a lot more environmentally friendly. We see major growth in both shuttle bus and public transport coming.

ESG:What do you think of the new competitors in the electric vehicles sector for public transportation?

William:
There are a lot of startups in the electric vehicles space and I wish them all the best. However what you need to realize is that this is a competitive market and it is very tough to get your first order in the transit side. Buyers often look at how long you’ve been around for and how are you going to offer service. If you don’t have any track record of this it’s going to be difficult.

ESG:  Have you looked at any partnership for Vehicle-2-grid charging for your customers?

William:
Yes we have we are exploring a possible cooperation with a Vehicle-2-grid supplier .

ESG: Do you have any plans to compete in the school bus industry for EV buses?

William:
Not at this point in time, we are now focusing on shuttle and transit buses.
I must say though now we have developed all the software and such and we are always looking at where we can place a new vehicle. With that said I’m not ruling it out but its not on the map right now.

ESG: What does the cooperation with Exro mean for Vicinity Motors?

William:
We are very excited to be working with Exro and if you look at their cutting edge technology they improve the efficiency of the electric motor which shows they can save 30 % power and therefore increase the range of electric vehicles by 30 % !
We hope to have this solution in our vehicles by the end of this year (2021).

ESG: What are vicinity motors gross margin and EBITDA goals?


William:
We want to maintain a 20% gross margins on vehicles and we are confident we can achieve this. We have a scalable platform and as we scale up our margins will increase considerably.  We are breakeven on 100 buses so at  for example 300 buses our EBITDA will be very good. The sector EBITDA is around 3 % but we are aiming at a minimum of 10 %.

ESG: What is the growth strategy moving forward?

William:
Our growth strategy is twofold . First we need our factory in place and you need a strong marketing / retail presence. We have aligned ourselves with ABC Companies which is a BIG player and I’m not sure the market realize what a power house of corporation this is.
ABC companies is one of the top 3 contenders in the bus industry.
They started in motor coaches but are now taking on transit and shuttle lines. I think they will do a good job for Vicinity Motors and our core values goes well with theirs.

We are also looking at expansion on the west coast with the states of Washington, Oregon and are also working on California. ABC Companies are big on the west coast and can likely bring in tremendous sales.

ESG: When will you be giving guidance in the form of a back log?

William:
At some point we will start giving official guidance right now you can follow it with our news releases.

ESG: What do you think of the current share price?

William:
 I’m confident that once we get on the Nasdaq the evaluation will more fairly reflect our true value. We think we will likely see a better evaluation once we hit the Nasdaq Listing.

ESG: Thank you for participating William!

William:
My Pleasure!

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.







CIELO WASTE SOLUTIONS ANNOUNCES CHANGES TO THE BOARD OF DIRECTORS

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
Market Cap: 342 MCAD at time of publication
Share price: 0,88 CAD at time of publication
Industry: Converting waste to renewable fuel

Cielo Waste Solutions has today announced several changes to the board . Mel Angeltvedt, Robin Ray and Lionel Robins have resigned from their board positions for personal reasons. Lionel Robins will devote his time to focus on his work as COO at Cielo Waste Solutions. Robin Ray is stepping down to devote more time to his accounting practice and Mel Angeltvedt has decided to focus on his own business.

Cielo Waste Solutions also presents an addition to the board in the form of Ryan Jacksson, CEO of Renewable U. The press release describes his background as follows:

“Mr. Jackson, a seasoned, experienced executive, has grown and developed several businesses and is currently the majority
shareholder and managing director for RAMECO Group’s portfolio of companies in consulting, commercial real estate, healthcare, leasing, finance, biotech and green technology. Mr. Jackson has led or taken part in numerous successful exits and is a Certified Management Consultant and a member of the Institute of Certified Management Consultants of Alberta and is an active investor. Currently, Mr. Jackson is a director and CEO of Renewable U Energy Inc. In addition to Mr. Jackson’s business ventures, he has served on numerous other boards such as chairman of the Medicine Hat Police Commission and was the Chair of Alberta Law Enforcement Response Teams (ALERT). He has also served as a member of the board of directors of Alberta Business Link.”

Ryan Jackson commented, “I am excited and honoured to be invited to Cielo’s board and believe my background and experience can add significant value to Cielo. I am proud to be part of a company focused on addressing the massive environmental waste issues currently affecting our planet and creating a solution for this problem. A win-win for us all. The world’s garbage issues need to be addressed and Cielo has a
brilliant green solution.”

Don Allan, CEO of the Company, commented, “I would like to personally thank Robin, Mel and Lionel for their leadership on our Board and for the valuable contributions they have made during their tenure. I would also like to welcome Ryan Jackson to the Board as both Ryan and I see the huge opportunity and environmental solutions Cielo offers.”


ESG comment: We find it encouraging that Cielo Waste Solutions gets the addition of Ryan Jackson as a new addition of the board with his vast business experience. It’s also positive to see that Lionel Robins gets to focus solely on his work as COO of Cielo Waste Solutions. This change of the board simplifies and strengthens the relationships between the Joint venture partner Renewable U and Cielo Waste Solutions. This change of directors could also be a strategic move to make room for more heavy industry connected board members.

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.

CIELO WASTE SOLUTIONS STRENGTHENS BALANCE SHEET WITH DEBENTURE CONVERSION

Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
Website:https://www.cielows.com/
Market Cap: 358 MCAD at time of publication
Share price: 0,92 CAD at time of publication
Industry: Converting waste to renewable fuel

Cielo Waste Solutions announced today that the $10 Million CAD interest free debenture loan announced on march 3rd of 2021 has been received. The company also stated that the entire debenture has been converted into common shares at a price of 1.02 CAD per share by all lenders.

CEO Don Allan stated ” We are thrilled to see the financial commitment from a group of our larger shareholders and pleased to see their additional commitment by converting their debentures at a premium to the current market price. This injection of capital, along with the funds raised from the exercise of outstanding warrants has firmly positioned us with the financial strength to drive forward aggressively
to accomplish our next major milestones and do so ahead of schedule.”

The net proceed will be used to acquire land in Edmonton for the second 100 % owned Cielo Waste Solutions plant. This facility will have a capacity between 24000 liters (or 6340 US liquid gallons) to 48,000 litres per day (or 12,680 US liquid gallons). Initially the proceeds from this loan finanicing was intendedto also repay the Company’s senior secured loan, however the Company has been able to repay the secured loan prior to the closing of this Financing as a result of funds received from the exercise of warrants.

ESG Comment: It’s very encouraging to see that lenders want to convert their debt debentures at a significant premium to market price. This shows their confidence in Cielo Waste Solutions and also strengthens the balance sheet of the company enourmously. When the fully owned Cielo Aldersyde facility is operational it will by itself be able to generate revenues between $13 Million CAD to 26,5 Million CAD per year assuming 11 months run time and a price of 1,67 CAD per liter. The Edmonton facility is projected to produce revenues somewhere in the range of 4-10 times more than Aldersyde depending on the modular construction.

Legal Disclaimer:

I own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. My posts are made for Educational purposes only and are not to be interpreted as tips , financial advise or recommendations of any kind to either buy or sell any stocks.

Companies may or may not be paying us for content posted on this blog.