VANCOUVER, BC / ACCESSWIRE / October 11, 2019 / (CSE:CMC) Cielo Waste Solutions Corp. ("Cielo" or the "Company") announces a private placement of convertible debenture units.
PRIVATE PLACEMENT OFFERING
Cielo announces a private placement offering of a targeted minimum of CAD $500,000 in convertible debentures units (the "Unit(s)"). Each Unit will consist of one (1) $1,000 unsecured convertible debenture (the "Debenture(s)") and 500 share purchase warrants (the "Warrant(s)").
The Debentures will bear interest at a simple rate of 15% per annum, the initial two (2) years of interest to be prepaid (the "Prepaid Interest") on the date of issuance of the Debentures (the "Issue Date") by the issuance of common shares (the "Prepaid Interest Shares") at a price of $0.12 per Prepaid Interest Share. The principal of the Debentures (the "Principal") together with all accrued interest exceeding the Prepaid Interest (the "Interest Balance") will be repaid 48 months from the Issue Date unless repaid earlier by Cielo without penalty or converted by the holder(s) thereof any time after four months and a day following the Issue Date at a price of $0.08 for the Principal and $0.12 for the Interest Balance.
Each Warrant will be exercisable for a term of 48 months from the Issue Date (the "Warrant Term") at an exercise price of $0.25 per share, subject to acceleration in the event that the common shares of Cielo listed on a recognized stock exchange trade at $0.50 or higher for at least five (5) consecutive trading days, in which event Cielo may provide a notice to holders that the Warrant Term will terminate 30 days from the date of notice.
The Offering is expected to remain open until October 31st but may close sooner or later in the discretion of the Company, subject to CSE approval. Net proceeds of the Offering will be used additional construction required to be completed to the Company's refinery in Aldersyde, Alberta, as well as for general working capital.
Although the Offering is non-brokered, the Company may, as determined in its sole discretion, pay reasonable customary brokers' and/or finders' commissions in connection with the completion of the Offering of up to 8% of the gross proceeds raised by such broker(s)/finder(s) and up to 8% of the total number of common shares that would be issued to subscribers introduced by such broker(s)/finder(s) if 100% of the Principal under the Debentures is converted.
Don Allan, President & CEO of Cielo, stated, "We are very close to revenue now and this raise will allow us some breathing room until the 1st truck load of renewable diesel is sold."
By modifying our feedstock input process, Cielo will be able to achieve greater conversion rates of garbage into renewable diesel at its first commercial refinery in Aldersyde, Alberta. While this is a positive outcome, Cielo also experienced challenging issues with the instrumentation in the vessels that regulates the waste input and the output of distillate in the reactor tower. A specialist from the instrumentation manufacturer was flown in from the U.S. to resolve the issues. Additional remote monitoring equipment has now been installed so that the specialist can remotely monitor and make adjustments to scale up production. Now that the improvements to the process have been completed, management is optimistic that the refinery will be running again next week.
Cielo has received a budget proposal from a U.S. desulfurization provider and is still working with two Calgary service suppliers to complete their tests. Management is working towards a decision to move forward with a preferred supplier over the next few weeks.
Don Allan, President & CEO of Cielo, stated, "Although we are frustrated at the time it has taken to resolve unforeseen issues, we believe the changes are for the better and we are confident that with these changes now installed, our green refinery will be up and running continuously, producing renewable diesel in the very near future."
Join Cielo shareholders on 8020 Connect: http://connects.digital/cielo1
On behalf of the Board of Directors of the Company.
Cielo Waste Management
Don Allan, President/CEO/Director
About Cielo Waste Solutions Corp.
Cielo Waste Solutions Corp. is a publicly traded company with its shares listed to trade on the Canadian Securities Exchange ("CSE") under the symbol "CMC". Cielo is a waste to renewable energy company with a game changing technology engineered to help solve the world's garbage crisis. Cielo's technology transforms landfill garbage into renewable diesel and naphtha fuels. Cielo's proven and patent-pending technology is currently being deployed in the Company's Aldersyde, Alberta green refinery where wood waste is being converted into renewable fuels.
Cielo is headquartered in Alberta, Canada with plans to build and operate green refineries across North America and globally.
Cielo has already begun expanding its footprint by signing multiple Memorandums of Understanding pursuant to which third parties are in negotiation with Cielo to build, at no cost to Cielo, Joint Venture Refineries in Grande Prairie, Calgary, Medicine Hat, Brooks and Lethbridge, Alberta. Each JV Refinery is projected to cost approximately $25M +/- to build, commission and place on production. Cielo will be the general contractor and operator of all of the proposed JV Refineries. The feedstock that will be used in the Company's green refineries is the world's most available and inexpensive feedstock - garbage; including household, commercial/construction/demolition garbage, used tires, railway ties, as well as all types of plastic that currently cannot be recycled.
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 related to the completion and results of the construction and commissioning of the Refinery, in particular with respect to current requirement improvements and the desulfurization process, as well as the Offering. 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, neither the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release.
SOURCE: Cielo Waste Solutions Corp.
View source version on accesswire.com: