August 24, 2021 Release here
Vancouver, British Columbia, Canada. August 24, 2021. Cielo Waste Solutions (TSXV:
CMC), (OTCQB:CWSFF), (WKN:C36), (“Cielo” or the “Company”) is pleased to
announce 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 “Property”). 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.”
On behalf of the Board of Directors
“Don Allan”
Don Allan, President / CEO / Director
Company Contact:
Raphael Bohlmann SVP Corporate
Development / Investor Relations
Email: [email protected]
Telephone: 1-(403)-348-2972 ext:105
Website: www.cielows.com
For further information please contact:
Investor Cubed Inc. (Canada):
Neil Simon, CEO
Email: [email protected]
Telephone: 1-(647) 258-3310
RB Milestone Group LLC (USA):
Trevor Brucato, Managing Director
Email: [email protected]
New York, NY & Stamford, CT
About Cielo Waste Solutions Corp.
Cielo is a publicly traded company with a proprietary technology and business plan to
transform certain types of landfill garbage into high-grade diesel, kerosene (aviation jet
and marine fuel) and naphtha. Cielo’s patented process technology is currently being
deployed in the Company’s Aldersyde, AB facility, where wood waste is currently being
converted into waste derived fuels. Cielo’s experienced management team is well
positioned with strategic partners in place to expand aggressively across Canada, into
the US and then globally. The waste/feedstock that will be used in the Company’s green
facilities is the world’s widely available and inexpensive feedstock, including household,
commercial, construction garbage, used tires, railway ties, telephone poles, as well as all
types of plastic, some of which currently cannot be recycled and/or deposited into landfills.
Cielo’s goal is to manufacture waste to fuel while ridding the world of unwanted
and problematic garbage.
Cautionary Note Regarding Forward-looking Statements
This News Release contains certain forward-looking statements and forward-looking information (collectively
referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All
statements other than statements of present or historical fact are forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”,
“plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”,
“should” or similar words, including negatives thereof, suggesting future outcomes.
Forward-looking statements are subject to both known and unknown risks, uncertainties and other factors, many of
which are beyond the control of the Company, that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those expressed or implied by such forward looking
statements. Cielo is making forward looking statements including but not limited to the terms of and matters related
to the Loan and the Bonus Warrants and the intended use of the Property. Although the Company has attempted to
identify important factors that could cause actual results to differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and
uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and
unknown risks and uncertainties, which may cause the Company’s actual performance and results to differ materially
from any projections of future performance or results expressed or implied by such forward-looking statements. Any
forward-looking statements are made as of the date hereof and, except as required by law, neither the Company
assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or
otherwise. The TSXV, OTCQB and, WKN, have not reviewed and do not accept responsibility for the adequacy or
accuracy of the content of this News Release.