VANCOUVER, BC / ACCESSWIRE / March 20, 2019 / (CSE: CMC) Cielo Waste Solutions Corp. ("Cielo" / "Company") would like to take an opportunity to provide an update on operations and corporate activities as well as achievements over the past year along with pending Milestones. The past 12 months have been very active and positive for Cielo. Cielo has continued to move its technology forward and has made significant strides towards having its Aldersyde renewable fuel refinery (the "Aldersyde Refinery") up and running on a continuous flow basis.
Highlights of what Cielo has accomplished over the past 12 months include the following:
Financing
As Cielo moves through the steps required to bring its technology to commercialization, without revenues Cielo continues to explore and execute on various financing alternatives. Cielo has successfully raised approximately $5.5 Million during the last 12 months by issuing approximately 31.5 million shares of common stock at an average price of approximately $0.17 per share, as follows:
- A total of 10,162,500 warrants were exercised into common shares for gross proceeds of $2,032,500 as part of Cielo's early warrant incentive program designed to encourage the early exercise of these warrants.
- Thereafter, an additional 3,960,680 warrants were exercised into common shares for gross proceeds of $748,936.
- In the most recent few months, Cielo completed a private placement offering of 12,649,007 common shares for gross proceeds of $1,644,371.
- Aside from private placement offerings and warrant exercises, Cielo was able to settle an additional $1,268,880 through the issuance of 6,607,767 common shares at an average price of approximately $0.19 per share.
Construction/Commissioning
- June 8, 2018, Cielo received its AEP Permit from the Alberta government for operations of the Aldersyde Refinery.
- June 29, 2018, Cielo commenced commissioning the Aldersyde Refinery.
- August 22, 2018, first production of raw distillate from wood waste was accomplished at Aldersyde.
- September 13, 2018, Maxxam Analytics provided Cielo with 3rd party favourable lab results confirming the conversion of the wood waste into a high-quality distillate.
- October 4, 2018, Cielo announced that it required additional heat to be able to run the Aldersyde Refinery on a continuous-flow basis. While additional equipment was being ordered Cielo's engineers split the refining process into two phases 1A and 1B. In Phase 1A Cielo is successfully producing distillate from the wood waste and in Phase 1B Cielo is refining the distillate into three renewable fuels – naphtha, kerosene and diesel. Until the additional heat is added, Cielo will run these two phases separately.
- On November 1, 2018, Cielo announced that it had successfully initiated the conversion of its raw distillate into the three renewable fuels (naphtha, kerosene and diesel).
- Cielo currently has contractors onsite installing and commissioning the redesigned heating system to operate the Aldersyde Refinery with the target of being on a continuous-flow basis.
- The Aldersyde Refinery will continue to produce distillate then naphtha, kerosene and diesel in the two phases until such time as the additional equipment requires operations to shut down for finalizing the retrofits.
- Thereafter the final commissioning steps will be completed, and Cielo will begin producing renewable fuels from wood waste on the long awaited continuous -flow basis with the refinery projected to run 24 hours a day 341 days a year.
Joint Ventures and Licensing Opportunities
While Cielo's main focus has been to complete the commercialization of its technology, management recognizes the importance of addressing its long-term strategy of building multiple refineries at first within, and then outside of, Canada. With a view to this, Cielo has entered into three binding Memorandums of Understanding ("MOUs") to enter into joint venture arrangements ("JV"s), which provide for arm's length third parties (each a "JV Partner") to pay all of the costs to build and place on production three future refineries ("JV Refineries") in the cities of Calgary, Grande Prairie and Medicine Hat, Alberta. In addition, Cielo has granted options to the funding groups to participate on similar terms to build a fourth and fifth refinery in the municipality of Brooks, Alberta as well as in Ontario, outside of the Greater Toronto Area. Cielo has received a total of $750,000 in joint venture licensing fees by entering into the MOUs plus a $50,000 deposit towards a potential fourth memorandum of understanding for Brooks, Alberta. In general terms, the JVs would require that each JV Refinery be funded 100% by the JV Partner for such refinery in exchange for a 49.9% interest after recovering 100% of their costs out of 70% of the net profits from each JV refinery. This is a significant accomplishment for Cielo as the structure of the joint venture arrangements effectively removes the financial burden of having to pay the projected $20 million in capital costs per refinery to roll out its technology as quickly as possible. Cielo's operational plan is to concurrently build multiple refineries, with one initially in each licensed territory. Cielo's JV Partners are working to quickly finalize locations for the JV Refineries so that as soon as the Aldersyde Refinery is up and running on a continuous-flow basis, Cielo and the JV Partners can move forward with the permitting process for three or more JV Refineries at the same time.
Marketing
Over the course of the past 12 months, the Cielo team has been very active in gaining industry exposure as well as investor exposure. Cielo has participated in many industry trade shows, including the Globe Series in Vancouver, events held by Alberta Clean Technology Industry Alliance as well as Prairie Biosciences Canada. From an investor relations perspective, Cielo has completed numerous road shows in Calgary, Winnipeg, Toronto, Vancouver and Montreal. In addition, Cielo has been active on the 8020 Connect platform for investor communications. Cielo continues to post updated videos/pictures of its progress and to issue press releases to keep investors informed of its operations and progress.
Don Allan, Cielo's President and CEO commented, "We have been making large strides over the past 12 months. our primary focus is on getting into revenue – ensuring we have financing to support our final steps in commercializing this technology. At the same time we are looking forward and continuing to execute on our strategic plan, which is to build multiple green refineries with the goal of being able to reduce the amount of garbage going into landfills."
Join Cielo shareholders on 8020 Connect: http://connects.digital/cielo1
For more information please contact:
Cielo Waste Solutions Corp.
Don Allan, President & CEO
(403) 348-2972 Ext. 101
[email protected]
www.cielows.com
Michael Yeung, CFA,
VP, Business Development & Capital Markets
(403) 348-2972 Ext. 103
[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 engineered to convert garbage-derived feedstocks to high grade renewable diesel, at a significantly lower cost than biofuel companies. With landfills being one of the world's leading contributors to Green House Gas emissions and being projected to double in size over the next 7 years, Cielo can potentially resolve this crisis, on a cost-effective basis, by converting multiple different garbage-derived feedstocks, including 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. Cielo is making forward looking statements related to the completion of the commercialization and commissioning of its technology, entry into joint venture arrangements, and generally with respect to Company’s short and long term goals and strategic plan. 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 news release.
SOURCE: Cielo Waste Solutions Corp.