Ticker: CMC.V / CWSFF
Listings: TSX Venture Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 483 MCAD at time of publication
Share price: 0.74 CAD at time of publication
Industry: Converting waste to renewable fuel
September 20, 2021 – Vancouver, British Columbia, Canada – Cielo Waste Solutions Corp.
announces the filing of its annual audited financial statements for the year ended April 30, 2021 , related
management discussion and analysis and officer certificates, together with the Financial Statements and the MD&A on http://www.sedar.com as required pursuant to applicable securities laws. All currency in this press
release is denoted in Canadian dollars.
2021 FINANCIAL OVERVIEW
• Total assets increased by $24.8 million as at April 30, 2021 compared to April 30, 2020. The
increase was due to $17.1 million increase in cash, mainly as a result of the conversion of
convertible debentures and the exercise of warrants, and $8.1 million increase in property,
plant and equipment related to the construction activities at Aldersyde facility.
• Total non-current liabilities decreased by $7.7 million as at April 30, 2021 compared to April
30, 2020. The decrease was due to the repayment of a secured loan and the conversion of
convertible debentures.
• Working capital deficiency decreased by $2.8 million to $0.7 million as at April 30, 2021 as
a result of $17.1 million increase in cash, partially offset by the increase in short-term warrant
liability, deferred revenue and fees, and accounts payable and accrued liabilities compared to
April 30, 2020.
• The net loss for the year ended April 30, 2021 was $39.7 million, an increase of $35.5 million
compared to $4.2 million net loss in the prior year, due to the following:
• The non-cash loss on fair value of warrant liability of $28.5 million in the current year,
primarily as a result of the increase of Cielo’s share price from $0.04 as at April 30,
2020, to $0.92 as at April 30, 2021
• The recognition of prepaid interest costs of $3.5 million included in financing cost,
primarily as a result of the early conversion of convertible debentures in the current
year
• The increase of $0.9 million in research and development expenses in the current year
compared to fiscal 2020 related to the Aldersyde facility
Don Allan, CEO, commented: “Despite the delay in the filing of our Annual Documents, the
management team has been committed to improve every aspect of our performance, including
internal controls and financial reporting. We believe that our investors should have confidence as
a result of the audit procedures by KPMG which were supported by our management team. This
is the baseline from which we will measure our performance and hold ourselves accountable to
our shareholders.”
In previous news releases dated August 27, 2021 (the “Aug 27 PR”) and September 7, 2021, the
Company announced the management cease trade order (the “MCTO”) issued by the British
Columbia Securities Commission (the “BCSC”) pursuant to National Policy 12-203 –
Management Cease Trade Orders.
The MCTO was issued in connection with the delayed filing of the Annual Documents. Upon
the filing of the Annual Documents, the Company believes that it has satisfied the conditions
of the BCSC in order to have the MCTO lifted.
The MCTO does not affect the ability of shareholders who are not insiders of the Company
to trade their common shares of the Company. The CEO and the CFO pursuant to the
MCTO, and the insiders of the Company as imposed by the Company, continue to be under
a trading blackout as previously disclosed until the MCTO is lifted by the BCSC.
As disclosed in the Aug 27 PR, the previously issued financial statements for the fiscal year ended
April 30, 2020, and the corresponding management’s discussion and analysis (collectively, the
“Restated Documents”), have been restated in the comparative figures presented in the Annual
Documents. The Restated Documents replace and supersede the respective previously filed
financial statements and management’s discussion and analysis for the year ended April 30, 2020.
The effect of the restatements does not impact the Company’s cash position, or the number of
shares previously reported as outstanding.
ESGFIRE comment:
Cielo Waste Solutions finished the quarter ending april 30th with a cash balance of 17 MCAD.
The company could receive upwards of 2.5 millon CAD in outstanding warrants , the average exercise price is 0.10 CAD.
For the financial year of april 2020 to april 2021 not counting in the loss of fair value for warrants the burn rate for Cielo was approximately 11.2 million CAD per year , or 2.8 million CAD per quarter. Since close to 6 months have passed since april we can now assume the cash balance is down to 11,4 million CAD which should be sufficient to keep the company going for another year ( or 4 quarters) assuming the costs don’t go up exponentially.
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