Mr. Don Allan reports
CIELO CLOSES 3RD TRANCHE OF $2 MILLION OFFERING AND PROVIDES OPERATIONS UPDATE
Cielo Waste Solutions Corp. has closed $499,965 in gross proceeds in the third tranche of its previously announced non-brokered private placement of up to 15,384,615 at 13 cents per unit, by the issuance of 2,076,923 units. The company issued 3,845,884 units in the third tranche. A total of $1,644,371 in gross proceeds has been raised in the initial three tranches by the issuance of 12,649,007 units.
Each unit comprises one common share and one warrant, with each warrant having an exercise price of 20 cents, and an expiration date of the earlier of 36 months from the date of issuance of the units and the date that is 30 days from the date that Cielo provides notice to the warrantholders that the expiration date of the warrants has been accelerated. The notice may only be delivered to the warrantholders after Cielo's listed common shares trade at 40 cents or higher for 20 consecutive days any time after four months and a day from the date of issuance of the units. Any warrants that have not been exercised on or before the expiry of the 30-day period will automatically expire.
Although the offering is non-brokered, the company may, as determined in its sole discretion, pay reasonable customary brokers' and/or finders' fees, as applicable, in connection with the completion of the offering. There were no fees paid with respect to the closing of the third tranche.
The net proceeds of the offering will continue to be used to acquire equipment and pay service costs to advance the commissioning of Cielo's first commercial waste to renewable diesel fuel refinery in Aldersyde, Alta., as well as for working capital.
Cielo would also like to announce that one of its contractors has agreed to convert $8,332.00 into 46,294 shares at a deemed price of 18 cents per share.
All securities issued under the offering and to the contractor are subject to a four-month hold.
The Aldersyde refinery continues to operate under a two-step process, step 1 being the conversion of the biomass (waste/sawdust) into a distillate, and step 2 being the conversion of the distillate into renewable naphtha, kerosene and high-grade diesel. Currently, Cielo is in negotiations with interested parties to sell a portion of the fuels that contain the sulphur, as well as to retain some product in inventory until it has been desulphurized, after which the high-grade renewable products will be sold.
Cielo contractors are working hard on building the front-end equipment for the pyrolysis process for the additional heat and the desulphurization equipment. The third party desulphurization company is conducting its analysis now to determine the amount of desulphurization medium that Cielo will require. Cielo is making strong headway on completing these final steps. Management is confident that the Aldersyde refinery will be on production on a continuous flow basis, generating significant positive cash flow shortly after the installation of this equipment is completed.
Don Allan, president and chief executive officer of Cielo, stated: "It is very exciting to see the fuel that we have been producing and the incredible engineering changes that our team are implementing. We appreciate the support from our stakeholders as we all believe in the potential value of our technology. We have never been more optimistic about being able to fulfill our goal to deploy our technology globally and become renowned as having an impact to the global garbage issue. We look forward to keeping everyone informed of our progress."
About Cielo Waste Solutions Corp.
Cielo Waste Solutions is a publicly traded company with its shares listed to trade on the Canadian Securities Exchange under the symbol CMC. Cielo holds the exclusive licence for the global rights to a transformational, patent-pending technology engineered to convert garbage-derived feedstocks to high-grade renewable diesel, at a significantly lower cost than biofuel companies.
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