Cielo Waste Solutions Ticker: CMC.CN / CWSFF Listings: Canadian Securitites Exchange / US OTC Website:https://www.cielows.com/ Market Cap: 326 MCAD at time of publication Share price: 0.84 CAD at time of publication Industry: Converting waste to renewable fuel
Cielo Waste Solutions today 7/4 2021 announced the very positive news that it has received a conditional grant from Alberta Innovates in the amount of $500,000.00 toward a nearly $900,000 commercial demonstration of the use of used railway ties as a feedstock at its flagship facility in Aldersyde, Alberta.
Cielo Waste Solutions stated that they right now have a feedstock agreement with a large Canadian railway company that is looking for a more renewable and circular economy to dispose of their used railway ties. The company stated that the current feedstock agreement is for up to 1,000,000 used railway ties per year with incentives in place to increase this number.
The company has a clear plan to scale up the demonstration “Cielo’s engineers have been working since last fall to complete the material testing, bench-scale trials and process modeling that will help facilitate approval from AEP. Cielo intends to then implement a 100 tonne demonstration, followed by a larger 500 tonne demonstration. The timeframe for the demonstrations and analysis is anticipated to be approximately 3 months.”
The application was apparently done last spring of 2020 and if this demonstration goes well it will allow Cielo to produce renewable fuels from used railway ties on an ongoing basis.
Don Allan, President and CEO of Cielo, stated in the press release “We believe that the eyes of the Railway Tie Association are on us to see these results and that, when successful, Cielo will have the most environmentally friendly solution for 10’s of millions of used railway ties per year from all across North America. Currently, many used railway ties are being incinerated by cogen facilities for power but already some states in the US and provinces in Canada are banning the incineration of these ties due to potential toxic ash and other harmful emmissions. Cielo is proud to have developed a process that does not currently have any toxic waste or emmissions “
Support was also shown by The Honourable Finance Minister of Alberta, Travis Toews which stated “I am pleased to hear that Cielo Waste Solutions Corp. has been awarded a CDN$500,000.00 conditional grant from Alberta Innovates. This funding will support Cielo as it tests its ability to utilize materials in its process to create renewable fuels. Cielo is a great example of the innovative and entrepreneurial spirit of Albertans. I am eager to see this Alberta based company expand their operations in the province and contribute to Alberta’s economic recovery.”
ESG comment: This conditional grant and the details of the feedstock agreement with a very large canadian railway company ( which I suspect is Canadian Pacific Railway) gives both credibility and financial stability to the continued operations of Cielo Waste Solutions. With this large feedstock agreement in place and if the demonstration succeeds this will provide yet another continued flow of feedstock for the ongoing operations and expansion plan. To have the financial support and blessing of the provincial government will last a long way to execute the company’s plans to build 40 facilities in a 5 year time plan!
I own shares in these companies personally andthis is not to be considered financial advise, always do your own research!
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Cielo Waste Solutions Ticker: CMC.CN / CWSFF Listings: Canadian Securitites Exchange / US OTC Website:https://www.cielows.com/ Market Cap: 409 MCAD at time of posting Share price: 1.16 CAD at time of posting Industry: Converting waste to renewable fuel
Cielo Waste Solutions today 17/3 2021 provided an update related to their press release dated on 9/3 2021. The company has received the entire balance of the aggregate fees of $750.000 CAD related to the 3 additional plants to be built, at no cost for Cielo, in British Columbia, Manitoba and the United States by Renewable U Energy Inc. (“RUEI”). Cielo has also paid back their largest secured lender in full, eliminating a senior secured loan of approximately CDN$3,800,000 further strengthening the balance sheet.
Further positive news was released in the update with the company stating that :
“Cielo had also announced in the March 9 PR, that RUEI was in the process of acquiring Seymour Capital Incorporation and/or its rights and obligations, which includes the right to enter into a memorandum of understanding with Cielo similar to the other RUEI memorandums of understanding for a territory in Ontario (the “Ontario Option”). Cielo is pleased to announce that RUEI has completed this process and wishes to exercise the Ontario Option. Cielo has received a fee of CDN$262,500 (including GST) from RUEI for the Ontario Option. RUEI and its partners have chosen Toronto, Ontario (within a 250km radius from the outer boundary) as the site for the first Ontario joint venture facility. “
Comments were provided by both parties:
Ryan Jackson, newly appointed CEO of RUEI, stated “This is a very exciting announcement to be in one of the most populated provinces in the country and working with local partners and all levels of government. We are looking forward to working with all stakeholders, feedstock providers, businesses, and governments at the municipal, provincial and federal levels to build a high-grade renewable fuel facility in the province of Ontario. We cannot wait to learn more about all of the waste feedstock, and provide jobs, opportunities and economic stimulus to yet another province in Canada!”
Don Allan, President and CEO of Cielo, stated “We are pleased to have RUEI as a JV partner and excited to build and operate even more facilities converting waste to high-grade renewable fuels. Cielo may be an Alberta-based company but it has always been our vision to solve the extreme garbage crisis in all provinces of our great nation! This is another monumental step forward for our Company and its ability to reduce landfills and eliminate other problematic waste.”
ESG comment: It’s very positive to see that Cielo has received all the aggregate fees for all 3 additional planned facilities at no cost for Cielo AND also for the facility in Ontario originally planned by Seymour Capital which has now merged with Renewable U Energy Inc. (“RUEI”). Cielo Waste solutions is truly working at record speed and is not wasting any time to get their expansion of 40 facilities in North America according to plan. This payment certainly reiterates the committment that RUEI has shown to fullfill its obligations for the planned Joint Venture facilities in North America.
Interesting financial projection numbers were provided yesterday in an article by investorintel.com stating that “Once the current 10 planned facilities are fully operational, Cielo could be generating C$170 million in EBITDA and, at a 15x EBITDA multiple, would translate into a market cap of $2.5 billion, almost five times where it is today.” What’s most interesting in this calculation is that this only takes into account 10 of the 40 facilities planned for the coming 5-7 years.
Cielo Waste Solutions Ticker: CMC.CN / CWSFF Listings: Canadian Securitites Exchange / US OTC Website:https://www.cielows.com/ Market Cap: 419 MCAD at time of posting Share price: 1.19 CAD at time of posting Industry: Converting waste to renewable fuel
After a truly flying start for Cielo Waste Solutions in 2021 the company keeps delivering. It was announced by Cielo Waste Solutions on the evening of 15/3 2021 that the company has applied for a listing of its shares for trading on the TSX Venture Exchange (“TSXV”).
ESG comment: This step, if fullfilled, will be another big quality stamp for the company and make it easier for institutional buyers to take a stake in Cielo Waste Solutions. It also opens up for wider capital injection opportunities for the company since institutional shareholders often have access to larger capital streams. Cielo Waste Solutions is also sure to get a lot of media and investor attention upon successfull listing at the TSX Venture Exchange (“TSXV”) !
Don Allan, President and CEO of Cielo Waste Solutions stated “This year has begun extremely well for Cielo. From our first pre-sale of renewable fuel, to better than expected preliminary results in desulphurization tests, we’ve had an amazing start to 2021, and this uplisting to a larger stock exchange is just one more step in our business plan to make Cielo world class. We believe that joining the TSXV opens new doors for Cielo with respect to capital markets and exposure.” Mr. Allan continued “The Canadian Securities Exchange has been a great way to access the Canadian public capital markets and has provided Cielo the opportunity to get to the commercial phase of our waste to renewable fuel technology at our fully operating commercial facility in Aldersyde, Alberta. We now feel ready for the next evolutionary step to join a world class exchange that we expect will bring more awareness to the Company.”
A disclaimer was also issued in conjuction with this press release : “Completion of the listing on the TSXV is subject to the satisfaction of listing requirements and the approval of the TSXV. There is no assurance that the TSXV will approve the listing application or that Cielo will complete the listing as contemplated. In the meantime, Cielo’s shares will continue to trade on the Canadian Securities Exchange under the ticker symbol “CMC”. Further updates will be provided as they become available.”
ESG Comment:Cielo Waste Solutions remains as my largest position in the portfolio and I’m confident that the company is on a positive path towards commercial success even more so after this breakthrough which will give the company access to larger and more differentiated ways to finance the rapid expansion towards 40 facilities in North America.