Cielo Waste Solutions Corp. (TSXV: CMC; OTCQB: CWSFF)
(
“Cielo” or the
“Company”), a
waste-to-fuel environmental technology company, is pleased to
announce that it has closed its previously announced mortgage loan
from First Choice Financial Incorporated (“
FCF”)
for an initial principal amount of CAD $2 million (the
“
Mortgage Loan”). The Company will be entitled to
draw down up to an additional CAD $3 million pursuant to the terms
of the loan commitment letter executed between Cielo and FCF, as
announced on July 17, 2023.
The Mortgage Loan bears simple interest of 7.5%
per annum and FCF has withheld $150,000 of the Mortgage Loan as an
interest reserve to satisfy the first 12 months of interest
payments. In addition, Cielo paid a financing fee to FCF on closing
of CAD $70,000, equal to 3.5% of the amount of the Mortgage
Loan.
The Mortgage Loan is secured against the
Company’s property in Aldersyde, Alberta, including a site-specific
general security agreement against the assets on the property. The
proceeds of the Mortgage Loan will be used for general working
capital.
The Mortgage Loan will mature on July 25, 2025,
however, at any point on or after July 25, 2024, in the event that
FCF is dissatisfied following an evaluation of Cielo’s financial
condition, business and technological progress, FCF may require the
Company to repay the Mortgage Loan, in whole or in part, within 90
days of the notice from FCF to the Company that such repayment is
required. Cielo has the right to repay the Mortgage Loan at any
time, without penalty. In addition, once the structure and
financing terms for the Company’s first commercial facility (the
“First Commercial Facility”) have been determined,
Cielo may make a proposal to FCF to exchange the principal portion
of the Mortgage Loan for participation in the First Commercial
Facility, which FCF will be entitled to accept or reject.
No securities have been or will be issued in
connection with the Mortgage Loan and no other fees or commissions
will be payable. The TSX Venture Exchange has approved the Mortgage
Loan.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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.
For further information please contact:
Cielo Investor Relations
Phone: (403)
348-2972 Email: investors@cielows.com
RB Milestone Group
LLC Email: cielo@rbmilestone.com
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 terms
of the Mortgage Loan, in particular regarding maturity and FCF’s
evaluation rights; there being, now or in the future, no securities
or additional fees or commissions payable on the Mortgage Loan; the
use of proceeds of the Mortgage Loan; and the formation of an
entity in connection with, and future financing of, the First
Commercial Property.
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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