Cielo Waste Solutions Reports 2023 Annual Financial Results
June 21 2023 - 6:00AM
Cielo Waste Solutions Corp. (TSXV: CMC; OTCQB: CWSFF)
(
“Cielo” or the
“Company”), a
waste-to-fuel company, today reports financial results for the
three months and year ended April 30, 2023. All amounts in this
news release are in Canadian dollars unless otherwise
indicated.
FINANCIAL HIGHLIGHTS
The Company continued to focus during and
subsequent to the year ended April 30, 2023 on progressing toward
the commercialization of its waste‐to‐fuel technology while
strategically managing costs.
- General and
administrative costs decreased $3.2 million (12‐month period) and
decreased $1.1 million (3‐month period) from their comparative
periods due to reduced spending.
- Research and development costs
decreased $3.4 million (12-month period) and decreased $0.2 million
during the quarter from the comparative period, primarily due to
Cielo’s focus on design and fabrication of the R&D
Facility.
- During the quarter ended April 30,
2023, Cielo had negative operating cash flow, consistent with prior
periods and as expected in a pre‐revenue business.
- Financing costs increased
approximately $0.3 million for the quarter and $0.9 million for the
12-month period, primarily due to the Company not capitalizing
borrowing costs on qualifying assets as the construction in
progress ceased at the Company’s prior facility in Aldersyde,
Alberta, which was decommissioned in August 2022, offset by
lessened interest expense as debt decreased from the comparative
period.
- Total assets decreased by $24.2
million as of April 30, 2023, compared to April 30, 2022, mainly
due to impairment of $25.6 million related to the decommissioning
of the prior facility in Aldersyde, partially offset by the
fabrication of the Company’s R&D facility in Aldersyde for $4.2
million and the decrease in cash related to continued research and
development activities and general and administrative
expenditures.
- Total liabilities decreased by $5.4
million as of April 30, 2023, compared to April 30, 2022, due to
the settlement of a mortgage loan through debt for securities
conversions of $6.5 million in aggregate and lower spending at the
prior facility in Aldersyde due to decommissioning resulting, in a
decrease in accounts payable and accrued liabilities of $0.5
million.
- The net loss for the Company for
the fourth quarter of 2023 was $4.1 million, and April 30, 2022,
the net loss was $2.2 million. The net loss for the Company in the
year ended April 30, 2023 was $36.2 million, an increase of $21.7
million from $14.4 million for the year ended April 30, 2022. The
increase in net loss is primarily due to the recognition of
impairment of $25.6 million, offset by a $5.3 million decrease in
general and administrative expenditures, research and development
expenditures, and share based compensation.
SELECTED FINANCIAL
INFORMATION
As at(Thousands of dollars) |
April 30, 2023 |
April 30, 2022 |
Total assets |
29,366 |
|
53,531 |
Total liabilities |
14,568 |
|
19,932 |
Total non-current liabilities |
61 |
|
16,958 |
Working capital |
(12,488 |
) |
1,164 |
Periods ended April 30 |
Three months ended |
Year ended |
(Thousands of dollars, except per share
amounts) |
2023 |
2022 |
2023 |
2022 |
Financing costs |
580 |
|
295 |
|
2,418 |
|
1,516 |
|
General and administrative |
619 |
|
1,716 |
|
3,638 |
|
6,869 |
|
Research and development |
698 |
|
899 |
|
2,104 |
|
5,467 |
|
Share based compensation |
194 |
|
363 |
|
464 |
|
1,399 |
|
Net loss per share – basic & diluted |
(0.00 |
) |
(0.00 |
) |
(0.04 |
) |
(0.02 |
) |
WEBINAR
Cielo’s CEO, Ryan Jackson, CFO, Jasdeep K. Dhaliwal, and EVP,
Operations, Ryan Carruthers, will host a live webinar on Thursday,
June 22nd, 2023, at 3:00 p.m. ET to discuss the filings and current
matters and answer investor questions. We invite all investors and
other interested parties to register for the webinar at the link
below.
Date: Thursday, June 22,
2023Time: 3pm ETRegister: Webinar
Registration
HAVE QUESTIONS? Management will
be available to answer your questions following the presentation on
the webinar platform. You may submit your question(s) beforehand in
the registration form or by email at: cielo@rbmilestone.com.
For further information please
contact:
Ryan Jackson, CEOPhone: (403) 348-2972
Cielo Investor RelationsEmail:
investors@cielows.com
ABOUT CIELO
Cielo Waste Solutions Corp. was incorporated
under the Business Corporations Act (British Columbia) on February
2, 2011. Cielo is a publicly traded company with its shares listed
to trade on the TSX Venture Exchange (“TSXV”)
under the symbol “CMC,” on the Frankfurt Exchange
(“DAX”) under the symbol “C36”, as well as on the
OTC Venture Market (“OTCQB”), under the symbol
“CWSFF.” The Company’s strategic intent is to become a leading
waste-to-fuel company using economically sustainable technology
while minimizing the environmental impact. Cielo has a patented
process that can convert waste feedstocks, including organic
material and wood derivative waste, to fuel. Having demonstrated
its ability to produce diesel and naphtha from waste, Cielo’s
business model is to construct additional processing facilities.
Cielo’s objective is to generate value by converting waste to fuel,
while fueling the sustainable energy transition.
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, with respect to, but not limited to the timing
of the filing of the Company’s annual audited consolidated
financial statements and corresponding management’s discussion and
analysis; and the timing, speakers, and agenda for the webinar.
Investors should continue to review and consider
information disseminated through news releases and filed by the
Company on SEDAR. 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, the Company
assumes no obligation to publicly update or revise such statements
to reflect new information, subsequent or otherwise. Neither the
TSXV nor its Regulation Services Provider (as that term is defined
in the policies of the TSXV), nor OTCQB nor WKN, have reviewed, and
do not accept responsibility for the adequacy or accuracy of, the
content of this news release.
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