Cielo Waste Solutions
Ticker: CMC.CN / CWSFF
Listings: Canadian Securitites Exchange / US OTC
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.
I own shares of this company personally.
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3 thoughts on “CIELO WASTE SOLUTIONS STRENGTHENS BALANCE SHEET WITH DEBENTURE CONVERSION”
I believe you made an error in the litres per day and the corresponding revenue numbers by mixing up the Aldersyde and Edmonton sites.
You state that Edmonton will generate between $13M to $26M in revenue, but that is implying that Edmonton will be producing at 1000L/Hr or 2000L/Hr.
Aldersyde will be upgraded to produce at 2000L/Hr which will generate ~$27M revenue annually, whereas Edmonton is planned to be a larger site, with production capacity anywhere between 4000-24000L/Hr.
So, at the bottom end (4000L/Hr) , Edmonton would produce ~$54M of revenue and at the high end (24000L/Hr), it would produce ~$328M annually.
Thank you I think this has now been corrected. Let us know otherwise!
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