Tag: cielo waste solutions

Ticker: CMC.V / CWSFF
Listings: TSX Venture Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 690,34 MCAD at time of publication
Share price: 1.07 CAD at time of publication
Industry: Converting waste to renewable fuel

Letter of Intent with Kodiak Chemical Solutions

Cielo Waste Solitions today announced that they have signed a non-binding Letter of Intent (“LOI”) with Kodiak Chemical Solutions (“Kodiak”). Kodiak is a Western Canadian based company interested in the purchase of Waste Derived Naphtha (“WDN”) for uses including but not limited to paraffin solvents, diluents, cleaning fluids, paint and ashphalt diluents and any other uses in their discretion. Kodiak wishes to purchase, from Cielo, WDN from all of Cielo’s Alberta production facilities. The material terms of the LOI are to be mutually agreed upon and set out in a definitive agreement, anticipated to occur prior to the end of 2021. This LOI does not conflict with a previously announced and existing memorandum of understanding with Elbow River Marketing, which is an offtake agreement for diesel fuels.

Lionel Robins, SVP Global Development & Indigenous Relations for Cielo, stated: “We believe the demand for naphtha in the current market is growing and seeing this demand further increases Cielo’s growth opportunity, as we can profitably produce more types of fuel. We now see the opportunity to have a WDN fuel that could demand a premium over its fossil-based counterparts. The price discussed with Kodiak will move with the weekly market price, and we expect that to generate a profitable revenue stream with good margins.”

Brian Venance, President of Kodiak Chemical Solutions, stated: “As the demand for energy continues to ramp up, Kodiak continues to look for and source sustainable alternatives where possible. Cielo’s WDN fuel is an alternative many of our customers are wanting and willing to pay for in the growing demand for sustainability and climate change.”

Operational Update

As to its operational update, and as previously announced, Cielo has hired 3 engineering companies to look for any improvements that can be made to the Aldersyde facility. Cielo has these engineers focused on the main pieces of the process, which include the reactor design and waste recovery to obtain optimized and enhanced performance.

Reactor Enhancements – Optimization of distillate production and achieving a steady-state production profile are priorities. Reactor modifications are anticipated to result in improved distillate production and carrier fluid efficiencies.

Waste Recovery – Cielo is working on modifications, including the implementation of a centrifuge system to the waste recovery process.

Desulfurization – The catalyst, intended for use in Cielo’s desulphurization process, designed by the University of Calgary, and produced in China, was not complete when it arrived to the Aldersyde, Alberta facility. The catalyst required further work and was sent to Texas, USA for catalyst activation and stabalization. Commisioning of the desulphurization process equipment is expected to be completed by the end of September, 2021.

New Corporate Office

Cielo is in the process of executing a commercial lease for corporate office space in downtown Calgary, Alberta. The lease is expected to be finalized in September 2021.

Don Allan, President and CEO of Cielo, stated: “We are delighted to have signed this LOI with Kodiak and look forward to working with them to build out our WDN business. I would also like to thank Kodiak Chemical Solutions and Brian Venance for their commitment and interest in our Waste Derived Naphtha.” Mr. Allan continued: “The process improvements our engineers are working on are creating better optimization of
our process facility which is beneficial prior to building multi million dollar facilities. We believe this is the right thing to do for our shareholders, investors, and financial lenders.” Additionally, Mr. Allan stated: “ The move to downtown Calgary from Red Deer will allow Cielo to expand and attract additional talent required for the anticipated growth of the Company. The inducements offered were quite competitive and Cielo is delighted to have the opportunity to support the recovery and transformation of downtown Calgary.”

ESG Comments & Calculations: We are happy to see that the timeline for finalizing the desulfurization stage is set for the end of September, the technology is not new in itself so we are not worried that it wouldn’t work.

In terms of production capacity, each modular of Cielo’s technology is on pace to produce 4000 litres per hour. Of those 4000 litres, 10% is Naphtha, so we end up with 400 litres per hour, per plant. Which is equal to 9600 litres per day. If we estimate 341 production days (24 days maintenance), each modular will generate 3.3M Liters of Naptha. If we make a conservative of the litre price tag Cielo’s naphtha will be, we land on $0,78 CAD. $0,78 multiplied by 3,3M litres give us over 2,5m CAD in revenue per year for the cheapest and lowest quantity of fuel. In a plant like Dunmore, that number is much higher and lands on $7.5M per year in revenue for just 10 % of the fuel produced. This is an “additional income” for the company for fuels that are worthless compared to the other fuels the company plans to sell! 

If we multiple the “additional income” on all future hundreds of plants in North America, the sales number for the Naphta alone becomes huge!

Legal Disclaimer:

We own shares of this company personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our 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.

Ticker: CMC.V / CWSFF
Listings: TSX Venture Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
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.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our 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.

Ticker: CMC.V / CWSFF
Listings: TSX Venture Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 826 MCAD at time of publication
Share price: 1.28 CAD at time of publication
Industry: Converting waste to renewable fuel

Cielo Waste Solutions is pleased to announce the completion of the balance of the Company’s non-brokered
convertible debenture financing (the “Financing”), as previously announced on March 15,
2021, receiving gross proceeds of CDN$4,000,000.

Pursuant to the Financing, which was arranged by First Choice Financial Corp. (“FCF”),
an arm’s length third party, the Company issued 4,000 non-interest-bearing, unsecured
convertible debentures (the “Debentures”), each issued at CDN$1,000 per Debenture, on
a prospectus-exempt basis, the principal amount of the Debentures being convertible into
common shares at $1.25 per share during the 12 month term of the Debenture. Cielo will
be entitled to repay the principal owing under the Debentures at any time before maturity
or conversion without penalty.
The net proceeds will be used for engineering work for a facility to be built on land to be
acquired by Cielo in Fort Saskatchewan, Alberta, as previously announced on May 27,
2021, or otherwise in the sole discretion of the Company. In connection with the
Financing, Cielo will pay transaction fees to FCF equal to CDN$280,000. and a
commission to a third party equal to CDN$320,000.
The Debentures are subject to a statutory 4-month hold period expiring on December 4,
2021.

Don Allan, CEO of Cielo, commented, “We are pleased to see FCF’s continued
commitment and belief in Cielo and our technology. FCF has been an ideal partner,
having now committed significant capital to Cielo over several funding rounds. This capital
will enable Cielo to advance our projects with our priority being to begin driving revenue
into Cielo”.

ESGFIRE comment: Cielo Waste Solutions is firing on all cylinders in their rapid expansion plan and today’s press release is another good milestone in order to achieve their growth plans. We are also awaiting the long anticipated and expected news update on the desulphurisation process at the Aldersyde facility which we hope will be clarified in either august or september.

Legal Disclaimer:

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.

Ticker: CMC.V / CWSFF
Listings: TSX Venture Exchange / US OTC / Frankfurt
Website:https://www.cielows.com/
Market Cap: 935.51 MCAD at time of publication
Share price: 1.45 CAD at time of publication
Industry: Converting waste to renewable fuel

We are delighted to see Cielo announce new COO and Changes to Senior Management Team. Gregg Gegunde will be the new Chief Operating Officer (COO).

The company commented “Mr. Gegunde has over 26 years of experience in the energy sector with diverse executive and technical leadership skills. Mr. Gegunde has extensive experience in production operations, asset development, asset management, process, joint ventures, environmental and health & safety. He has recently retired as Senior Vice President of Exploitation, Production and Delivery at Penn West Petroleum. Mr. Gegunde holds a Bachelor of Science in Chemical Engineering from the University of Calgary and a diploma in Mechanical Engineering from the Southern Alberta Institute of Technology. Mr. Gegunde is a professional engineer and a member of the Association of Professional Engineers & Geoscientists of Alberta and a member of the Association of Professional Engineers & Geoscientists of Saskatchewan. Mr. Gegunde’s appointment is subject to the approval of the TSX Venture Exchange.”

In congruence, Lionel Robins has stepped down from his role as COO and will take on his new role of Senior Vice President of Global Development/Indigenous Relations, including oversight of government relations. Raphael Bohlmann will also be moving to a new role of Senior Vice President of Corporate Development and Investor Relations. Mr. Bohlmann will continue to attend to the Company’s marketing and will also oversee capital markets and communications. Shawn Frenette will be stepping down from his role as Vice President of Global Development.

Don Allan, President and CEO of Cielo, stated, “As Cielo continues to grow we will continue to add qualified individuals to our senior management team. I am very pleased to welcome Mr. Gegunde to the Cielo team as COO and also for the additional duties Mr. Bohlmann and Mr. Robins will be taking on in their new roles.”

ESG Comments: Great to see Cielo move forward with their plan, make some management position rotations and announce the new COO so the company becomes well positioned for their growth in the future.

Legal Disclaimer:

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.

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 3^rd 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.

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.

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
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.