Ticker: CMC.V / CWSFF
Listings: TSX Venture Exchange / US OTC / Frankfurt
Market Cap: 697 MCAD at time of publication
Share price: 1.08 CAD at time of publication
Industry: Converting waste to renewable fuel

Cielo Waste Solutions has today announced that it has closed on the acquisition of a 60 acre industrial site with a 31,750 square
foot industrial building in Fort Saskatchewan, Alberta . The Company also
announces that, immediately prior to the closing of the acquisition of the Property and
completion of the Loan, it repaid an existing loan with a principal amount of CND$1M.

Cielo management believes it has received substantial savings on this asset. The
previous owner developed the Property in 2014/2015 and spent approximately CDN$22M
on site development, compaction and gravelling of the entire yard, which is also fenced
and lighted, and the erection of a sizable building that Cielo can utilize for its purposes.

Cielo was able to purchase the Property for CDN$13M, a net realized savings of
approximately CND$9M as well as construction costs
. In addition to the cost savings, the
site has been more than adequately prepared for Cielo to begin planning its waste to fuel
facility and therefore save substantial time in development.

Don Allan, President and CEO of Cielo, stated: “We believe this location will quickly
advance Cielo’s commercial development in Canada’s largest hydrocarbon industrial
park. We have Canada’s two largest rail companies with their rail yards in direct sight,
offtake customers for our waste to fuel products, feed stock suppliers and all required
subtrades and service vendors in close proximity.”
The Company, as borrower, concurrently closed a CDN$12M mortgage loan (the
“Loan”) from First Choice Financial Incorporated (“FCF”) and KV Capital Inc. (“KV”), as
lenders. The Company used the net proceeds from the Loan towards the purchase
price of the Property. The Loan is subject to an annual interest rate of 6% and is
secured with the assets of the Fort Saskatchewan and the Aldersyde facilities. The
Loan has a 12 month term, which is subject to automatic renewal at the end of the
original term for further six month periods in consideration for a renewal fee equal to
1.5% of the then outstanding balance, subject to the lenders’ rights to terminate the
automatic renewal at their discretion.
The Company has issued 12,000,000 non-transferable share purchase warrants (the
“Bonus Warrants”) as inducement for the Loan. Each Loan Bonus Warrant will entitle
the holder to purchase one common share of the Company at an exercise price of
CDN$1.00 for a period of 36 months, however, in the event that the Loan is repaid in
whole or in part during its term, a pro rata number of the total Bonus Warrants will have
their term reduced to the date that is 90 days from such repayment.
The TSX Venture Exchange (the “TSX-V”) has conditionally approved the terms of the
Loan and the Bonus Warrants, noting the terms thereof had substantially been agreed
upon prior to the listing of the Company’s shares on the TSX-V.

Don Allan further states: “We also appreciate FCF’s continued support of Cielo and belief
in our vision for the Company to become a leader and dominant player in the renewable
energy sector. We want to thank FCF as their investment in Cielo over the last year has
firmly positioned Cielo with the capital needed to complete several ongoing initiatives.
FCF also introduced us to KV, who has shown strong interest in supporting Cielo with
future financing opportunities.”

Vikas Sharma, President of FCF, stated “First Choice Financial is proud to be a funding
partner of Cielo Waste Solutions. FCF always looks for companies with unique business
models to assist them in achieving their goals. FCF is proud to support Cielo which, we
believe, through their hard work and propriatery technology, has the potential to change
the world as we know it. Plastics, landfill waste, and emissions are all global problems
and we believe Cielo has the ability to transform the way the world deals with these
issues, which have real life impacts to our environment and health. We are pleased to be
supporting Cielo’s decision in acquiring this new land as they have proven their
technology through their existing Aldersyde facility, and expansion seems to be the next
logical step. FCF has been a long time supporter of Cielo and its global mission and looks
forward to further supporting Cielo in its future endeavours and being a trusted ally in
building a sustainable future.”

Aleem Virani, KV Capital’s CEO, stated “This financing is another example of KV Capital’s
commitment to the success of its clients through our focus on making complex financial
transactions as simple and efficient as possible. We are proud of our team’s flexibility,
creativity, and speed of execution in completing this deal and our role in supporting the
growth of an innovative and dynamic company like Cielo.”

ESG comments: We are please to see the purchase of the Fort Saskatchewan site finalize.
This is yet another important pusle piece coming together for the massive expansion of Cielo Waste Solutions.
We are also eagerly awaiting to hear , hopefully within 4-6 weeks, on the progress of the
dezulphurisation process currently being installed at the Aldersyde site.

Legal Disclaimer:

We own shares of this company personally.

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