Cielo Completes Partial Loan Repayment by Shares for Debt Issuance
Cielo Waste Solutions Corp. has successfully completed a shares for debt transaction to repay CAD $2,000,000 of a mortgage loan with First Choice Financial and KV Capital. This transaction, approved by the TSXV Venture Exchange, involved the issuance of 26,984,126 common shares at prices between $0.07 and $0.09 per share, reducing the loan principal to CAD $4,500,000. The repaid shares will be subject to a 4-month hold period expiring on January 9, 2023. Additionally, 2,000,000 Bonus Warrants will expire on or about December 7, 2022.
- Successful completion of shares for debt transaction.
- Reduction of mortgage loan principal to CAD $4,500,000.
- Issuance of 26,984,126 common shares enhances liquidity.
- Shares issuance may dilute existing shareholder value.
- Remaining loan principal still substantial at CAD $4,500,000.
CALGARY, AB / ACCESSWIRE / September 15, 2022 / Cielo Waste Solutions Corp. (TSXV:CMC)(OTCQB:CWSFF) ("Cielo" or the "Company"), a waste-to-fuel environmental technology company, is pleased to announce that it has completed the shares for debt transaction (the "Shares for Debt Transaction") previously announced on August 9, 2022, pursuant to the agreement between Cielo and First Choice Financial Incorporated ("FCF") and KV Capital Inc. ("KV", together with FCF, collectively the "Lenders") for the repayment of CAD
Following receipt of approval from the TSXV Venture Exchange, the Company has issued 21,428,571 common shares of Cielo at a price of
In addition, as previously announced, 2,000,000 Bonus Warrants (as defined in the August 9 th press release) will have their term reduced and, if not exercised, will expire on or about December 7, 2022.
The Repayment Shares are subject to a 4-month hold period, which will expire on January 9, 2023.
For further information please contact:
Ryan Jackson, Interim CEO
Phone: (403) 348-2972
Cielo Investor Relations
Email: investors@cielows.com
RB Milestone Group LLC (USA):
Trevor Brucato, Managing Director
Email: cielo@rbmilestone.com
New York, NY & Stamford, CT
ABOUT CIELO
Cielo Waste Solutions Corp. was incorporated under the Business Corporations Act (British Columbia) on February 2, 2011. Cielo is a publicly traded company with its shares listed to trade on the TSX Venture Exchange (" TSXV ") under the symbol "CMC," on the Frankfurt Exchange (" DAX ") under the symbol "C36", as well as on the OTC Venture Market (" OTCQB "), under the symbol "CWSFF." The Company's strategic intent is to become a leading waste-to-fuel company. The Company intends to use economically sustainable technology while minimizing the environmental impact. Cielo has a patented process that can convert waste feedstocks, including organic material and wood derivative waste, to fuel. Having demonstrated its ability to produce diesel and naphtha from waste, Cielo's business model is to construct additional processing facilities. Cielo's objective is to generate value by converting waste to fuel, while fueling the sustainable energy transition.
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, with respect to, but not limited to : the reduction of the principal of the Loan to CAD
Investors should continue to review and consider information disseminated through news 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 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, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV), nor OTCQB nor WKN, have reviewed, and do not accept responsibility for the adequacy or accuracy of, the content of this news release.
SOURCE: Cielo Waste Solutions Corp.
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https://www.accesswire.com/716218/Cielo-Completes-Partial-Loan-Repayment-by-Shares-for-Debt-Issuance
FAQ
What is the outcome of Cielo's shares for debt transaction on September 15, 2022?
How many shares did Cielo issue in the debt repayment?
What is the status of Cielo's Bonus Warrants announced in the press release?
When does the hold period for Cielo's repayment shares expire?
What impact does the shares for debt transaction have on Cielo's shareholders?
