Ecolomondo Releases Its Interim Consolidated Financial Statements for the Second Quarter of 2023

Rhea-AI Summary

Ecolomondo releases unaudited financial statements for Q2 2023, with a loss of $379,897 compared to $365,406 in 2022. Capital expenditures for Hawkesbury facility reach $44,677,910. Positive cash flows expected in Q1 2024. ISCC certification obtained for Hawkesbury facility. Shamrock facility budgeted cost estimated at $93 million.

Positive

• Positive cash flows expected in Q1 2024
• ISCC certification adds commercial value to end-products
• Shamrock facility positions Ecolomondo as a leading industry player

Negative

• Loss of $379,897 for Q2 2023
• Capital expenditures of $44,677,910 for Hawkesbury facility
• Anticipated financing for Shamrock facility to close in H1 2024

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, announces that it has released its unaudited consolidated financial statements and notes thereto and its related management discussion and analysis for the interim period ended June 30, 2023 (the “Interim Financial Statements”). The documents are available on SEDAR at www.sedar.com.

During the quarter ended June 30, 2023, the Company continued to market its TDP turnkey facilities and commission its new Hawkesbury TDP facility (the “Project”). While the commissioning of the Hawkesbury TDP facility is reaching completion, the Company started its production ramp-up. The Company is also preparing for start of the construction of its unprecedented Shamrock, Texas, TDP turnkey facility, and evaluating other potential sites to build more TDP turnkey facilities as it strategizes its North American expansion.

Highlights of the unaudited consolidated financial statements and notes thereto for the interim period ended June 30, 2023 are:

• The Company received an advance from a company under common control of $450,000.
• Loss for the quarter was $379,897, compared to $365,406 for the same period in 2022;
• As of June 30, 2023, capital expenditures for the Hawkesbury TDP turnkey facility totaled $44,677,910.
• Accounts payable and accrued liabilities decreased by $774,382 between December 31, 2022 and June 30, 2023.
• The Company expects to have positive cash flows from the operations of the Hawkesbury facility starting in the first quarter of 2024, however to fill working capital needs and have cash to fulfill strategic objectives, management expects to undertake a capital raise early in the fourth quarter of 2023.

During the second quarter of 2023, the Company continued its aggressive pace towards commercial operations at its Hawkesbury TDP turnkey facility. Tests were performed in both Reactors 1 and 2, with payloads beginning initially at 1,600 lbs, gradually increasing to 15,000 lbs per batch in both reactors. Test results confirm the flexibility and robustness of the TDP reactors and process. The Company is currently planning to process 2 batches per reactor every 24 hours.

On July 11, 2023, the Company announced that it received the International Sustainability and Carbon Certification (“ISCC”) for its Hawkesbury TDP facility, another step forward towards commercial operations. ISCC is a Global Sustainability Certification System and offers chain-of-custody certification systems to ensure traceability and feedstock identity. It is an independent multi-stakeholder initiative and leading certification system supporting sustainable, fully traceable, deforestation-free and climate-friendly supply chains. Certifications by ISCC cover sustainable agricultural biomass, biogenic waste and residues, non-biological renewable materials and recycled carbon-based materials. With currently over 7,000 valid certificates in more than 100 countries, ISCC is among the world’s largest certification systems. This ISCC certification can add commercial value to the Company’s end-products as they remain traceable in the supply chain.

The Company believes that once fully ramped-up and commercially operational, the Hawkesbury TDP facility as a showpiece should identify TDP as a leading technology in thermal processing of end-of-life tires.

During the second quarter of 2023, the Company continued to make considerable headway at its Shamrock, Texas TDP turnkey project. The Shamrock facility will serve as the Company’s flagship entry into the US market. Coupled with the production capacity of the Hawkesbury (Ontario) facility, the Company will produce over 15,900 metric tons of recovered carbon black per year. Management believes that this unprecedented production capacity of recovered carbon black should position Ecolomondo to become a leading industry player.

The total budgeted cost of the Shamrock facility is projected to be approximately US$93 million. The Company has engaged the services of a leading U.S. Investment Bank to advise on the financing. It is anticipated that the financing to close in the first half of 2024, with ground breaking to begin soon thereafter.

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 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.

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 a minimum of 12,786 metric tons of tire waste per year and produce 4,200 metric tons of recovered carbon black, 5,200 metric tons of oil, 1,430 metric tons of steel, 1,270 metric tons of process gas and 675 metric tons of fiber.

About the Shamrock Project – A 6-Reactor TDP Facility
Processing capabilities for the Shamrock facility is projected at 42,000 metric tons per year of end-of-life tires, yielding approximately 15,900 metric tons of recovered carbon black, 128,100 barrels of oil, 5,400 metric tons of steel, 2,550 metric tons of fiber and 4,800 metric tons of syngas; roughly three times the size of the Company’s Hawkesbury (Ontario) plant output. Facility construction is expected to begin by the end of the fourth quarter of 2023 with completion expected by the end of the second 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.

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.

ISCC Certification
The Company received the International Sustainability and Carbon Certification (“ISCC”) for its Hawkesbury TDP facility. ISCC is an independent Global Sustainability Certification System and offers chain-of-custody certification systems to ensure traceability and feedstock identity. It is an independent multi-stakeholder initiative and leading certification system supporting sustainable, fully traceable, deforestation-free and climate-friendly supply chains. Certifications by ISCC cover sustainable agricultural biomass, biogenic waste and residues, non-biological renewable materials and recycled carbon-based materials.

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.

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/20230825809997/en/

Eliot Sorella

Chairman and Chief Executive Officer, Ecolomondo

(450) 587-5999

esorella@ecolomondocorp.com

www.ecolomondo.com

Source: Ecolomondo Corporation