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Cielo Announces First Significant Sale of Renewable Diesel with $1.5mm Purchase Commitment





 

Vancouver, British Columbia, Canada – TheNewswire - February 23, 2021 - Cielo Waste Solutions (CSE:CMC), (OTC:CWSFF), (CNSX:CMC.CN), (WKN:C36) ("Cielo" or the "Company") is pleased to announce its first significant sale of renewable fuels with a purchase commitment for 900,000 litres (238,000 gallons) of renewable diesel (the “Purchased Fuel”) at CAD$1.67/litre for an aggregate purchase price of CAD $1,500,000 (the “Aggregate Purchase Price”).  The purchaser (the “Purchaser”) will also have an option to purchase another 600,000 litres (159,000gallons ) of renewable diesel at the same price of CAD $1.67/litre for a period of 6 months.

 

This Purchased Fuel will be produced at the Company’s waste to renewable fuel facility located in Aldersyde, Alberta (the “Aldersyde Facility”), anticipated to be produced over approximately the next three to five months. The Purchased Fuel will be held on-site in storage tanks until Cielo reduces the sulphur content down to less than 15 PPM by treating it with the proprietary process that is now being fabricated. Once the desulphurization process is completed, the treated renewable fuels will be shipped as directed by the Purchaser.   Management believes that the premium price per litre being paid by the Purchaser confirms the Purchaser’s confidence in Cielo to deliver desulphurized renewable diesel, which commands a higher price than sulfured diesel and traditional Biodiesel.

 

Upon payment of the Aggregate Purchase Price, anticipated to be on or about February 26, 2021, Cielo will issue 3,750,000 share purchase warrants (the “Warrants”) to the third party who brokered the purchase and sale (the “Broker”).  The Warrants will be exercisable at $0.135 for a period of 24 months, subject to acceleration at the option of the Company, whereby the term of the Warrants may be reduced to 30 days following notice to the Purchaser.  The Company will be entitled to accelerate the term of the Warrants in the event that the closing price of the Company’s common shares is $0.25 per share or higher for a period of at least 10 consecutive trading days. The Broker will also receive a 5% cash commission.  

 

Don Allan, President and CEO of Cielo, stated, “After several years of advancing our waste to high grade renewable fuel technology, we are finally in a position to start reaping the rewards of our efforts. These revenues are expected to put Cielo into immediate positive cash flow and may also open up additional non-dilutive financing opportunities for Cielo should they be required.”  Mr. Allan continued, “We are very excited to share with the world our lucrative way to convert multiple waste streams, including all plastics, into high-grade renewable fuels, that we believe can command a premium price to both conventional diesel and biodiesel.   Our anticipated cost of approximately $0.90 per litre would allow for healthy margins and we are confident that we can reduce costs even further as a result of our commitment to increasing production levels as we progress. This is truly a milestone in the long journey for Cielo and its shareholders and we are pleased to prove to the world that we are here to stay and make a serious effort to help with the world garbage crises.”

 

On behalf of the Board of Directors of the Company,

 

Cielo Waste Solutions Corp.

Don Allan
Don Allan, President / CEO / Director

 

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 |Investor Relations (Canada)    |Investor Relations (USA)         |
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 |Lionel Robins (780) 832-6810   |RB Milestone Group, LL           |
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 |lionelrobins@cielows.com       |Trevor Brucato, Managing Director|
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 |                               |cielo@rbmilestone.com            |
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 |Public Relations               |                                 |
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 |Raphael Bohlmann (780) 876-7786|                                 |
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 |raphael@branduagency.ca        |                                 |
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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 and marine fuel). Cielo’s proven and patented technology is currently being deployed in the Company’s Aldersyde Facility, Alberta, 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, depending on throughput 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.

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 related to: the purchase and sale of the Purchased Fuel and all matters related thereto, including the desulfurization thereof; prices at which renewable fuels produced by the Company may be sold; costs of the Company associated with the production of renewable fuels, the issuance of the Warrants and associated cash commission; and generally the impact of the sale on the Company, including with respect to cash flows and other financing opportunities. 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.

 

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.