Ecolomondo Finalizes the Agreement to Restructure Its Project Financing Loan With EDC

Rhea-AI Summary

Ecolomondo Corporation (ECM) Restructures Loan Agreement with Export Development Canada (EDC) to Complete Hawkesbury TDP Facility

Positive

• Restructured Loan facility with a maturity date of May 2029 and capped interest rate at 8.5%
• Capital and interest payments to begin May 1, 2024, with quarterly installments based on a twenty-five-year amortization
• Accumulated interest on the Loan until May 1, 2024, will be capitalized without additional interest if both the Loan and the accumulated interest are paid back by the maturity date
• Hawkesbury facility generated revenues during the year, with customers expressing satisfaction and placing repeat orders
• Ecolomondo expects the Hawkesbury plant to be fully operational by May 2024

Negative

• None.

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MONTREAL--(BUSINESS WIRE)-- Ecolomondo Corporation (TSXV: ECM) (OTC: ECLMF) (the “Company” or “Ecolomondo”), a cleantech company specializing in the commercialization of its Thermal Decomposition Process (“TDP”) proprietary recycling technology and the global deployment of TDP turnkey facilities, has signed an agreement (“Restructured Loan”) to restructure its original loan agreement (“Loan”) with Export Development Canada (“EDC”).

The original Loan was for an amount of $32.1 million in project financing with EDC, executed on April 3, 2019, to finance the construction of the Company’s first of its kind new turnkey thermal decomposition facility in the Town of Hawkesbury, Ontario (the “Hawkesbury facility”) to process end-of-life tires to produce re-usable resources.

The Restructured Loan will have a maturity date of May 2029 and caps the interest rate at 8.5%. Capital and interest payments will begin May 1, 2024, and be repaid in quarterly installments of principal and interest based on a twenty-five-year amortization. Accumulated interest on the Loan until May 1, 2024, will be capitalized to the Loan without additional interest if both the Loan and the accumulated interest are paid back by the maturity date.

This Restructured Loan facility will allow the Company to work through the final steps to bring the Hawkesbury TDP facility to full commercial operations, expected by May of 2024.

The Hawkesbury facility generated revenues during the year, mostly in the third quarter of 2023, from the sale of end-products. Customers that purchased Ecolomondo’s end-products expressed satisfaction while many placed repeat orders.

The Company believes that once fully ramped-up and commercially operational, the Hawkesbury plant will be a testimonial to an efficient and commercial TDP turnkey facility.

"Ecolomondo is proud to conclude this Restructured Loan agreement for this great project. It confirms once again EDC’s continued support of the Hawkesbury TDP turnkey plant and of Ecolomondo", said Elio Sorella, President and CEO, Ecolomondo.

About Ecolomondo Corporation
Ecolomondo Corporation is a Canadian cleantech company that prides itself after its proprietary Thermal Decomposition technology TDP which is headquartered in Québec, Canada. It has a 25-year history and during this time has been focused on its development of its technology and the deployment of TDP turnkey facilities. TDP recovers high value re-usable commodities from scrap tire waste, notably rCB, oil, syngas, fiber and steel. Ecolomondo expects to be a leading player in the cleantech space and be an active contributor to the global circular economy. Ecolomondo trades on the TSX Venture Exchange under the symbol (TSXV:ECM). To learn more, visit www.ecolomondo.com

About the Hawkesbury Plant – A 2-Reactor TDP Facility
The Hawkesbury facility building is 46,200 sq.ft and has an impressive indoor clearance of 28 feet. It is state-of-the-art and houses 4 main production departments, tire shredding, thermal decomposition, recycled carbon black refining and oil fractionation. Once fully operational, this facility is expected to process 1.3M of scrap tires per year and produce 8.7M lbs of recovered carbon black, 34,608 barrels of oil, 2.9M lbs of steel, and 2.6M lbs of process gas.

About the Shamrock Project – A 6-Reactor TDP Facility
Processing capabilities for the Shamrock facility is projected at 5.5M per year of end-of-life tires, yielding approximately 35.1M lbs of recovered carbon black, 128,100 barrels of oil, 11.9M lbs of steel, and 10.6M lbs of syngas; roughly three times the size of the Company’s Hawkesbury (Ontario) plant output. Facility construction is expected to begin by the third quarter of 2024 with completion expected by the end of the fourth quarter of 2025. Projected cost to build is approximately US $93 million.

Our Mission, Vision & Strategy
Ecolomondo’s mission is to be a contributing participant in a dynamic Circular Economy and to increase shareholder value by producing and supplying large quantities of recovered resources to be re-used in the manufacture of new products.

Ecolomondo’s vision is to be a leading producer and reseller of recovered resources by building and operating TDP facilities, strategically located in industrialized countries, close to feedstock, labor and offtake clients.

Our strategy is to become a major global builder and operator of TDP turnkey facilities, for now specializing in the processing of ELTs. Our intent is to expand aggressively in North America and Europe. Our experience and modular technology should help us get there faster and better. We plan to keep performing ongoing research and development to ensure that Ecolomondo remains technologically advanced.

ISCC Certification
A confirmation of the Company’s successful process lies in the recent International Sustainability and Carbon Certification (“ISCC”) for its Hawkesbury TDP facility, another step forward that should help improve demand for TDP. ISCC is a Global Sustainability Certification System and offers chain-of-custody certification systems to ensure traceability and feedstock identity, which can add commercial value to the Company’s end-products as they remain traceable in the supply chain.

ISO Certification
The Company has obtained ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 certification of its Integrated Management System (IMS), which acknowledges Ecolomondo’s commitment for quality, environmental impact and health and safety at work.

Environmental, Social & Governance (ESG)
On the social aspect the Company plans to measure global health and safety, injury rate and gender diversity, and finally in the corporate governance aspect, the Company is measuring ethics and anticorruption, ESG reporting and board independence.

About TDP
The TDP process is technically proven and more advanced than most other pyrolysis technologies. Over the years, our Technological teams were able to overcome all uncertainties that plagued most competitors especially in these areas: pre-filtration, reactor cooling, reactor rotation, water recycling, processing of rCB, (hydrocarbon removal), mass monitoring, heat curve development, humidity and water removal, safety testing, system automation, emissions control and monitoring.

TDP is Environmentally Friendly – CO₂ Reduction
By producing rCB, TDP reduces GHG emissions by 90% versus the production of virgin carbon black. The production of rCB at the Hawkesbury and Shamrock facilities are expected to reduce CO2 emissions by 22,400 and 67,200 tons per year, respectively.

Please follow Ecolomondo on Twitter, Facebook, LinkedIn, Instagram and YouTube.
Twitter: https://twitter.com/EcolomondoECM
Facebook: https://www.facebook.com/EcolomondoECM
LinkedIn: https://www.linkedin.com/company/ecolomondo/
Instagram: https://www.instagram.com/ecolomondoecm/
YouTube: https://www.youtube.com/@Ecolomondo

Cautionary Note Regarding Forward Looking Statements
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although Ecolomondo believes that the expectations reflected in forward looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Except as required by law, Ecolomondo disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240102466329/en/

Ecolomondo Corporation

Eliot Sorella

Chairman and Chief Executive Officer, Ecolomondo

Tel: (450) 587-5999

esorella@ecolomondocorp.com

www.ecolomondo.com

Source: Ecolomondo Corporation

FAQ

What is the ticker symbol for Ecolomondo Corporation?

The ticker symbol for Ecolomondo Corporation is ECM

What is the agreement signed by Ecolomondo Corporation with Export Development Canada?

Ecolomondo Corporation signed a Restructured Loan agreement with Export Development Canada to restructure its original loan agreement for the Hawkesbury TDP facility

What are the terms of the Restructured Loan facility?

The Restructured Loan facility has a maturity date of May 2029 and caps the interest rate at 8.5%, with capital and interest payments beginning May 1, 2024, and repaid in quarterly installments based on a twenty-five-year amortization

When does Ecolomondo expect the Hawkesbury plant to be fully operational?

Ecolomondo expects the Hawkesbury plant to be fully operational by May 2024

What type of facility is the Hawkesbury TDP facility?

The Hawkesbury TDP facility is a turnkey thermal decomposition facility to process end-of-life tires to produce re-usable resources