Ecolomondo Releases 2023 Annual Results
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Montreal, QC, May 1, 2024 -- Ecolomondo Corporation (TSXV: ECM) (OTCQB: ECLMF) (the “Company” or “Ecolomondo”), a cleantech company that designs, builds, operates and commercializes Thermal Decomposition turnkey plants using its proprietary Thermal Decomposition Process (“TDP”) recycling technology, announces that it has released its audited consolidated financial statements and notes thereto and its related management discussion and analysis (“MDA”) as of and for the year ended December 31, 2023 (the “Annual Financial Statements”). The documents are available on SEDAR at www.sedar.com
During the fiscal year ended December 31, 2023, the Company continued to make important strides at its state-of-the art Hawkesbury TDP turnkey facility. The Company continued to promote its TDP proprietary technology to strategic partners while it was strategizing to select potential future sites and investors to build TDP turnkey facilities, all as part of its global expansion strategy.
During the fiscal year ended December 31, 2023, the Company focused on the ramp-up of its Hawkesbury TDP facility:
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It performed the simultaneous production cycles at optimal payloads using both of reactors at its Hawkesbury TDP facility;
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It improved efficiency of the shredding line and thermal processing TDP.
In late 2023, as the Company began to ramp-up its production, it became aware that its recovered carbon black milling machine did not have the capacity of producing the required throughput of 1,600 lbs per hour of recovered carbon black and to produce the required particle size of 15 microns. The Company immediately identified the root cause of the problems and decided on the necessary corrective measures. While these corrective measures will cause some delay to Hawkesbury’s full commercialization, management believes that all should be completed by the third quarter of 2024. During this period, the Company plans to keep shredding scrap tires, performing TDP batches and selling the steel and the pyrolysis oil. The Company plans to ship the recovered carbon black produced to a tolling company for final processing. Once returned, the Company expects to ship the processed recovered carbon black to its customers.
Highlights of the Annual Financial Statements are:
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The company had revenues of $149,281 compared to $81,632 for the fiscal year ended December 31, 2022. During the period, the Company sold $196,727 of end-products produced at the Company’s Hawkesbury TDP facility, compared to nil for the fiscal year ended December 31, 2022;
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As of December 31, 2023, capital expenditures for the Hawkesbury facility totaled $44,554,339 and the term loan with EDC reached $37,903,920. The Company contributed equity of $11,828,295 to fulfill the covenants of its loan and amending agreements;
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A write-down of $3,392,636 of the Hawkesbury assets is reflected in the consolidated financial statements of the Company for the year ended December 31, 2023, to reflect the removal of equipment and related costs that have been replaced or discarded;
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The Restructured Loan signed with EDC on December 22, 2023, allowed for the postponement of principal and interest payments to May 2024 with interest capped at 8.5% per year. The agreement calls for the Restructured Loan to be repaid in quarterly settlements of principal and interests starting in May 2024 based on a 25-year amortization, and the final balance and all capitalized interest to be repaid when the Loan matures in May 2029;
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As at December 31, 2023, the Company had an accumulated deficit of $26,743,082 ($22,018,374 as at December 31, 2022) as well as a working capital deficit of $9,746,977 and an adjusted working capital deficit of $4,107,925 (after taking into consideration the Share-For-Debt Agreement of $3,498,853 and the cash injection of $1.5 million indicated in the Subsequent Events section of the Company’s audited consolidated financial statements for the year ended December 31, 2023.
The Company projects to use a further $4,500,000 during the next fiscal year, mostly for working capital, commissioning, ramp-up and purchase of equipment at its Hawkesbury facility, of which as mentioned above $1 million has already been injected by the Company’s controlling shareholder. The Company is expecting to raise the remaining cash requirements of $3,500,000 for the balance of 2024 by securing a bridge loan of $3,000,000, with the balance of $500,000 coming from a company controlled by its controlling shareholder. The Company further advised that on March 27, 2024, it benefited from another advance of $500,000 from a company under common control.
For more details on these Annual Financial Statements of Ecolomondo, visit www.sedar.com or www.ecolomondo.com
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 in Canada on the TSX Venture Exchange under the symbol (TSXV:ECM) and in the United States under the symbol (OTCQB:ECLMF). 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
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.
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
Ecolomondo Corporation Contact
Eliot Sorella
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
esorella@ecolomondocorp.com
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.