VANCOUVER, BC / ACCESSWIRE / September 18, 2017 / Cielo Waste Solutions Corp. (CSE: CMC)("Cielo" or the "Company") is pleased to announce that it has agreed on a non-binding term sheet with a Private Alberta based lender (the "Lender") for a $3.5 million line of credit (the "Credit Facility") to Cielo for the conversion of the its pilot plant in High River, Alberta (the "Pilot Plant") into a commercial process and to refinance its existing mortgages. A firm agreement is expected upon the completion of due diligence by the Lender and the finalization of terms.
The Credit Facility would be structured as a demand based, non-revolving line of credit and would bear simple interest at 12% annually. Payments of interest only would be required until September 30th, 2018 and Cielo would be able to repay the loan without penalty any time after September 30th, 2018. The Lender would receive security in the assets of the Company as well as bonus warrants, exercisable at $0.20 per share, on additional terms to be determined.
The Credit Facility would be used to repay the current mortgage on the property in High River, Alberta where the Pilot Plant is located as well as the full indebtedness owed on Cielo's demonstration plan (the "Demo Plant"), which is being converted into the Pilot Plant. The balance would be used to fully construct Cielo's first commercial plant and allow Cielo to begin commercial operations.
Cielo's President and CEO, Don Allan, stated, "We are extremely excited to partner up with the Lender to launch our company from pilot stage to full commercial stage. This is an extremely huge milestone for the company as this would provide for the final funds required for construction. Once in place, we can fully concentrate on the retrofitting of our Pilot Plant into commercial production. Being full steam ahead we are optimistic that we could potentially get into production shortly after we obtain our operating permit from the Alberta Government."
Operational Update
The Demo Plant in Red Deer has now been dismantled for the purposes of moving it to the Company's property in High River, AB to begin to retrofit the exiting refinery into Cielo's first commercial plant. With the Demo Plant dismantled, Cielo has now begun identifying vendors for the larger equipment needed to complete the retrofitting. Cielo has also moved its operational offices from an industrial park in Red Deer County to downtown Red Deer.
Cielo is also pleased to announce that management has selected PanOptic Automation Solutions ("PanOptic") to handle the automation installation for the Pilot Plant. PanOptic is a privately-owned Calgary based consulting firm providing automation and instrumentation. PanOptic will become a strategic partner to oversee the optimization, automation and remote monitoring of the Company's proprietary waste to renewable diesel refineries.
Don Allan, President and CEO of Cielo, stated, "PanOptic is the perfect strategic partner for us to be working with, as we are not only in the process of retrofitting our demonstration plant into a 350 liter an hour continuous flow refinery, but concurrently finalizing the engineering drawings to build our follow-on 1,800 liter per hour refineries, which we plan to deploy globally. PanOptic has impressed us with their insight as to how we can plan towards making our refineries as efficient as possible through automation and remote monitoring. The ideas proposed by PanOptic are aligned with our vision to build multiple plants in Alberta as well as in other jurisdictions."
Barry Becker, President of Panoptic Automation Solutions, commented, "Our partnership with Cielo combines an answer to the planets limited landfill space with the current trend of automation and data exchange in manufacturing technologies. The future of biofuels is being revolutionized in our own backyard and it's happening in a way that uses automation to optimize the operation of these mini-refineries with cyber-physical system monitoring and centralized control using remote control technology."
For more information please contact:
Cielo Waste Solutions Corp.
Don Allan, President & CEO
(403) 348-2972 Ext. 101
[email protected]
www.cielows.com
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 holds the exclusive license for the global rights to a transformational, patent-pending, technology that can convert garbage-derived feedstocks to renewable diesel, at a significantly lower cost than biofuel companies. The garbage-derived feedstocks include sorted municipal solid waste (garbage), wood and agriculture waste, tires, blue-box waste, all plastics and virtually any other cellulous waste product into high-grade renewable diesel.
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, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of its industry. 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.
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SOURCE: Cielo Waste Solutions Corp.