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 completed the sale of its property in Fort
Saskatchewan, Alberta, and the resulting elimination of the
Company’s $11 million mortgage loan.
Fort Saskatchewan Land Sale
On July 17, 2023, the Company announced that it
had entered into a purchase and sale agreement with First Choice
Financial Incorporated (“FCF”), as purchaser, for
the sale (the “Sale”) of the Company’s property in
Fort Saskatchewan, Alberta (the “FS Property”),
which has now closed.
The purchase price for the FS Property was CAD
$13 million (the “Purchase Price”), subject to the
terms of the Note (as defined below), and has been paid as
follows:
-
FCF previously provided a mortgage loan of CAD $11 million (the
“Existing Mortgage Loan”) to the Company, which
was secured in part by the FS Property. $11 million of the $13
million Purchase Price has been applied to extinguish the Existing
Mortgage Loan.
-
Regarding the remaining CAD $2 million, FCF has issued in favour of
the Company a promissory note (the “Note”),
whereby FCF will be required to use commercially reasonable best
efforts to enter into a purchase and sale agreement for the sale of
the FS Property on or before September 30, 2024. Should FCF be
unable to do so, the Purchase Price will be reduced by CAD $2
million.
Other than customary fees, such as realtor
commissions, no third-party finder fees have been paid with respect
to the Sale.
Dunmore Land Acquisition
On May 1, 2023, the Company announced that it
had entered into an agreement of purchase and sale (the
“Offer to Purchase”) with
Renewable U Inc. (“Renewable U”), pursuant to
which Cielo (or its assignee) has agreed to purchase the land in
Dunmore, Alberta (the “Land”) from Renewable U for
a purchase price of CAD $5.2 million. The Offer of Purchase
provided for certain conditions and an anticipated closing date of
August 1, 2023. As the Company has not completed its due diligence
process with regard to the development of the Land for Cielo’s
purposes, namely the construction of a waste-to-fuel facility, the
Company and Renewable U have agreed to the extension of the
deadline of certain conditions, as well as the anticipated closing
date to August 31, 2023.
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
Note and the terms thereof; the acquisition of the Land (in
Dunmore) and the timing of the related conditions, deadlines, and
closing date.
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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