Cielo Announces Partial Debt Equity Loan Repayment Agreement and Live Corporate Webinar on August 16 at 2 p.m. ET

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  • Ryan Jackson, CEO of Cielo, and Jasdeep Dhaliwal, CFO of Cielo, will provide an overview of the company via a live presentation followed by a live Q&A.
  • Investors and other interested parties are invited to join and learn more about Cielo’s waste-to-energy technology.

CALGARY, AB /ACCESSWIRE/August 9, 2022/ Cielo Waste Solutions Corp. (TSXV: CMC); (OTCQB: CWSFF) (“Heaven” or the “Company”), a waste-to-fuel environmental technology company, is pleased to announce that it has entered into an agreement with First Choice Financial Incorporated (“FCF“) and KV Capital Inc. (“kV“, together with FCF, collectively the “Lenders“) for the repayment of C$2,000,000 of a mortgage loan (the “Ready“) provided by the Lenders in August 2021, through the issuance of shares (the “Actions for Debt Transaction“).

In an ongoing effort to improve the Company’s financial condition, the Company has agreed, subject to the approval of the TSX Venture Exchange (the “Swap“), to repay a portion of the loan, which is secured by the company’s property in Fort Saskatchewan, Alberta. The loan, which was announced on August 24, 2021, has an outstanding balance of CA$6,500,000 following the prepayment of a portion of the loan earlier in 2022, as previously announced Completion of the equity-for-borrowing transaction will result in the loan being reduced by C$2,000,000 in exchange for the issuance of 21,428,571 common shares of Cielo at a price of $0.07 per share and of 5,555,555 common shares of Cielo shares at a price of $0.09 per share, for an aggregate issue of 26,984,126 common shares of Cielo (the “Redemption Actions”).

The terms of the loan provided for a 12-month interest reserve, which will be exhausted in August 2022, so Cielo will have to start making additional monthly interest payments in September 2022. In addition to Cielo’s debt reduction in general, the actions for the debt transaction will allow a reduction of these interest payments.

In addition, 12,000,000 non-transferable warrants (the “Subscription warrants“) had been issued in August 2021 as an inducement for the loan. Pursuant to the terms of the loan, in the event the loan is repaid in whole or in part during its term, a proportionate number of the total bonus warrants will have their term reduced on the date which is 90 days from this redemption. As part of the first partial redemption earlier in 2022, 5,500,000 Bonus Warrants had their term reduced (and have now expired) and as part of the Shares proposed for the Debt Transaction, 2,000,000 other BSA Bonuses will have their duration reduced on the date which is 90 days following the completion of the Share-for-Debt Transaction. Bonuses are not exercised within this period, they will expire.

The Equity for Debt Transaction is subject to stock exchange approval. After approval and issuance, Redemption Shares will be subject to a 4 month hold period.

Ryan Jackson, CEO of Cielo, said, “We are delighted with First Choice Financial’s decision to convert some of its current debt into Cielo stock. This conversion, combined with the lease agreement, allows Cielo to significantly reduce cash outflows related to the Fort Saskatchewan Property. Cielo sincerely appreciates the vote of confidence from Mr. Sharma and his company with this conversion and will continue to work very hard to achieve our stated goal of bringing our technology to market.

Vikas Sharma, President of FCF, said, “First Choice Financial is proud to be part of Cielo Waste Solution’s vision to change the world and the way we use waste. We believe that Cielo’s proprietary technology is truly a game-changer and has the potential to change the way we perceive and use waste forever.” Mr. Sharma continued, “CWF is a long-time supporter of Cielo and has recently decided to convert a portion of its debt into a direct investment in Cielo. CWF is pleased with the dedication of Cielo management and their focus on marketing and selling Cielo. I believe these recent improvements in the financial position of Cielo will bring Cielo closer to its goal of large-scale commercialization.”

LIVE WEBINAR – AUGUST 16E2022

Cielo is also pleased to announce that the company’s CEO, Ryan Jackson, and Chief Financial Officer, Jasdeep Dhaliwal, will present Cielo’s story, including an overview of current operations and next steps, while sharing the Cielo’s most recent investor presentation. The Company invites all investors and other interested parties to register for the webinar by clicking on the link below.

Date: Tuesday August 16, 2022
Time: 2 p.m. ET
Register: Webinar registration

HAVE QUESTIONS? Management will be available to answer your questions following the presentation on the webinar platform. You can submit your question(s) beforehand in the registration form or by email to: [email protected].

For more information, please contact:

Ryan Jackson, interim CEO
Call: (403) 348-2972

Cielo Investor Relations
E-mail: [email protected]

RB Milestone Group LLC (USA):
Trevor Brucato, General Manager
E-mail: [email protected]
New York, NY and Stamford, CT

ABOUT SKYLO

Cielo Waste Solutions Corp. was incorporated under the Business Corporations Act (British Columbia) on February 2, 2011. Cielo is a publicly traded company whose shares are listed on the TSX Venture Exchange (“TSXV“) under the symbol “CMC,” on the Frankfurt Stock Exchange (“DAX“) under the symbol “C36”, as well as on the OTC Venture Market (“OTCQB“), under the symbol “CWSFF.” The strategic intention of the company is to become one of the leading environmental technology companies for the recovery of waste into fuel by using its environmentally friendly and economically sustainable technology. Cielo has a process patented technology that can convert waste feedstocks including plastics, rubber, organics and wood-derived waste into fuel.Cielo’s business model is to source waste from industrial producers and other suppliers and converting these feedstocks into fuels.Having demonstrated its ability to produce diesel and naphtha from waste, Cielo plans to further upgrade its Aldersyde facility and build additional facilities that will convert waste into energy fuels, including diesel, naphtha and kerosene Diesel from Cielo distillate could be used in engines s diesel. Kerosene could be suitable for aviation or marine jet fuel, and naphtha could be used to facilitate the transport of heavy oil. Cielo’s goal is to generate value from converting waste into fuel while ridding the world of unwanted and problematic waste.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press 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 current or historical facts are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “may”, “believe”, “plan”, “intend”, “objective”, “continuing”, “in progress”, “estimate”, “prospect”, “expect”, “may”, “will”, “plan”, “should” or similar words, including their negative forms, suggesting future results.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control, which may cause actual results, level of activity, performance or the Company’s achievements are materially different. of those expressed or implied by such forward-looking statements. Cielo makes forward-looking statements regarding, but not limited to,: the completion of the Redemption Share Transaction under the conditions provided, in whole or in part, including the conversion prices of the Redemption Shares, the number of shares and the holding period; the reduction of the term of 2,000,000 bonus warrants and their expiration if not exercised; the impact of the previous milestones on the Company’s financial condition, including reduced cash outflows related to the Fort Saskatchewan property, and the impact of this improvement on the Company’s ability to move closer to commercialization; and the live webinar, including date and time, speakers and agenda.

Investors should continue to review and consider information disseminated through press 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 the forward-looking statements, there may be other factors that cause results not to be those anticipated, estimated or expected.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some of which are described here. These forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the actual performance and results of the Company to differ materially from the projections of future performance or results expressed or implied by these forward-looking statements. All forward-looking statements are made as of the date hereof and, except as required by law, the Company undertakes no obligation to publicly update or revise such statements to reflect new information, whether subsequent or not. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV), nor the OTCQB nor WKN has reviewed the contents of this press release and accepts no responsibility for its relevance or accuracy.

THE SOURCE: Cielo Waste Solutions Corp.

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