Cielo Announces Fiscal Q1 2024 Financial Results
September 27 2023 - 4:01PM
Cielo Waste Solutions Corp. (TSXV: CMC; OTCQB: CWSFF)
(
“Cielo” or the
“Company”), a
waste‐to‐fuel company, today announced its financial results for
the three months ended July 31, 2023 and 2022. Copies of the
unaudited interim financial statements and related management's
discussion and analysis can be found on the Company's issuer
profile at www.sedarplus.ca. All financial information in this news
release is reported in Canadian dollars, unless otherwise
indicated.
Q1 2024
HIGHLIGHTS
During, and subsequent to the quarter, Cielo
achieved the following goals:
- Obtained
a $5 million mortgage loan facility to
support ongoing operations (initially drawing down $2 million)
- Executed
agreements to terminate MOUs with Renewable U, allowing
for repayment of fees in whole or in part by issuing securities of
Cielo or a future project entity
- Executed
an agreement to purchase land in Dunmore, Alberta for a
$5.2 million purchase price.
- Executed
an agreement to acquire complementary assets, including an
exclusive license agreement, anticipated to accelerate the
Company’s path to commercialization and revenues as well as improve
its proprietary technology.
-
Completed the sale of the Company’s Fort Saskatchewan
property.
Financial Highlights
All amounts CAD $000’s |
As at |
|
(Thousands of dollars) |
July 31, 2023 |
|
April 30, 2023 |
|
Total assets |
26,611 |
|
29,366 |
|
Total liabilities |
15,693 |
|
14,569 |
|
Total non-current liabilities |
1,954 |
|
61 |
|
Working capital deficiency |
(1,270 |
) |
(12,487 |
) |
Periods ended July 31 |
|
Three months ended |
(Thousands of dollars, except per share
amounts) |
|
2023 |
|
2022 |
|
Financing costs |
|
577 |
|
635 |
|
General and administrative |
|
949 |
|
981 |
|
Research and development |
|
439 |
|
550 |
|
Share based compensation |
|
131 |
|
(39 |
) |
Write down of asset held for sale (impairment) |
|
2,748 |
|
25,366 |
|
Net loss per share – basic & diluted |
|
- |
|
(0.04 |
) |
- Net loss for the
three months ended July 31, 2023 was $4.8 million, $23 million less
than the period ended July 31, 2022, primarily due to the 2023
rental revenue of approximately $0.2 million and gain on settlement
of debt of $0.2 million, plus recognition of an impairment loss on
the FS Property of $2.7 million (due to a condition of sale)
compared to the impairment recognition related to property, plant
and equipment of $25.4 million in 2022.
- During the
quarter ended July 31, 2023, Cielo had negative operating cash flow
of $1.4 million, consistent with prior periods, and as expected in
a pre-revenue business. Cielo expects cash flow from operations to
be negative during the product development stages of the
Company.
- Financing costs
decreased approximately $0.1 million for the 3-month period
primarily due to the lessened interest expense as debt decreased
from the comparative period.
- General and
administrative costs approximated costs incurred in the comparative
period. Professional fees increased approximately $0.2 million due
to increased corporate development activities, while personnel
decreased approximately $0.3 million as Cielo continues to minimize
its personnel costs. Property tax variance of $0.06 million is due
to adjustments in the comparative period. Office and administration
cost increases include costs associated with the exit of former
Calgary office in the amount of approximately $0.18 million.
OUTLOOK
During, and subsequent to, the quarter ending
October 31, 2023, Cielo anticipates the following:
- Subject to the
approval of the TSX Venture Exchange (the “TSXV”), the completion
of the proposed asset purchase transaction with Expander Energy
Inc. (“Expander”), as disclosed in a news release dated September
20, 2023 (the “Proposed Transaction”), and the resulting plans for
the Company’s first commercial facilities utilizing the
technologies to be exclusively licensed from Expander.
- The closing of a
minimum of C$45 million in connection with, and as a condition to,
closing of the Proposed Transaction.
- Subject to the
terms and conditions previously disclosed, including the approval
of the TSXV, the acquisition of land in Dunmore, Alberta from
Renewable U Energy Inc. to be used for the construction and
operation of a commercial facility.
- The holding of the
Company’s annual general and special meeting of its shareholders on
October 26, 2023, at which the shareholders of the Company will be
asked to approve, among other things, an up to 1 for 15 securities
consolidation, which will be subject to the approval of the TSXV
(and potentially the completion of the proposed securities
consolidation).
FOR FURTHER INFORMATION PLEASE
CONTACT:
Ryan Jackson, CEOPhone: (403) 348-2972Email:
investors@cielows.com
RB Milestone Group LLC Email:
cielo@rbmilestone.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 completion of
the Proposed Transaction, the amount, and use(s) of the $45 million
financing; the acquisition of land in Dunmore, Alberta; and the
timing and matters to be approved at the Company’s annual general
and special meeting of shareholders.
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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