Tickers: XCNQ:CMC, XOTC:CWSFF, PINX:CWSFF
Tags: #Biotechnology, #Environment
Vancouver, British Columbia, Canada - TheNewswire - May 5, 2020 - (CSE:CMC) (CNSX:CMC.CN) (OTC:CWSFF) Cielo Waste Solutions Corp. ("Cielo" or the "Company") announces that it has issued a promissory note (the "Note") in favour of 1823741 Alberta Ltd., operating as Kwik-Fab Energy Services, a long-time supplier and contractor of the Company's (the "Lender" or "Kwik-Fab").
Kwik-Fab, as a result of its solid long-term relationship with Cielo, has agreed to provide additional support to Cielo by converting $1 million of its receivable from Cielo into a $1 million term loan ("Loan"). As Cielo's prime contractor, management believes Kwik-Fab has illustrated its confidence in Cielo's proprietary waste-to-fuel technology. The Loan will allow Cielo to move one step closer to completing the upgrades at the Company's Aldersyde facility, which are being engineered to increase continuous flow production of renewable fuels from 100 liters an hour to 1,000 liters an hour.
The principal amount of the Loan is subject to simple interest at a rate of 7% per annum (increasing to 12% per annum following and in the event of a default). The aggregate unpaid principal amount of the Loan, all accrued and unpaid interest and all other amounts payable under the Note will be due and payable on April 30, 2022, unless extended by mutual agreement, however the Company may prepay the Loan in whole or in part at any time or from time to time without penalty or premium. The Loan is secured against all or substantially all of the assets of the Company, as outlined in a general security agreement corresponding to the Note, subordinated to all prior secured loans and secured convertible debentures.
Mark Haldane, Vice-President of Kwik-Fab, stated "Over the past 6 years of working closely with Cielo, we have become very strong believers in Cielo and their proprietary technology that cost effectively converts garbage to high grade renewable fuels. We believe that Cielo is on the cusp of great things and are excited about being a part of their success."
Don Allan, Cielo's President & CEO further commented "We so appreciate the support from Kwik-Fab and are looking forward to being back up and running once our workers can safely go back to work amidst the COVID-19 pandemic and the upgrades to the process have been completed."
On behalf of the Board of Directors of the Company.
Cielo Waste Solutions Corp.
Don Allan, President/CEO/Director
RB Milestone Group, LLC
Trevor Brucato, Managing 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", as well as OTC Markets Group, on the OTCQB, under the symbol "CWSFF". CIELO is a waste to renewable fuel company with a game changing technology engineered to help solve the world's garbage crisis. CIELO's technology transforms landfill garbage into renewable high-grade diesel and kerosene (aviation jet fuel). CIELO's proven and patent-pending technology is currently being deployed in the Company's Aldersyde, Alberta Facility, where wood waste is currently being converted into renewable fuels.
CIELO is headquartered in Alberta, Canada with plans to build and operate green facilities across North America as well as 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 Renewable Diesel Facilities in Grande Prairie, Calgary, Medicine Hat and Lethbridge, Alberta as well as in Nova Scotia. Each JV Facility is projected to cost approximately $50 million to build, commission and place on production. CIELO will be the general contractor and operator of all the proposed JV Facilities. The feedstock that will be used in the Company's green facilities is the world's most available and inexpensive feedstock - garbage; including household, commercial/ construction/demolition garbage, used tires, railway ties and telephone poles as well as all types of plastic that currently cannot be recycled.
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 use/benefit of the proceeds of the Loan. 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 and the OTCQB have not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
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