Ecolomondo Releases its Interim Consolidated Financial Statements for the First Quarter of 2024
 | |||||||||
 |  |  |  | ||||||
Montreal, QC, May 31, 2024 – TheNewswire – 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 (“MDA”) for the three-month period ended March 31, 2024 (the “Interim Financial Statements”). The documents are available on SEDAR at www.sedar.com
Highlights of the unaudited consolidated financial statements and notes thereto for the interim period ended March 31, 2024, are:
-
The Company had revenues of $109,215 mostly from the sale of end-products produced at the Hawkesbury facility.
-
A company under common control, owned by the controlling shareholder, loaned to the Company $1.5 million for a term of one year at 8.5% interest per annum.
-
Loss for the quarter was $1,531,713, compared to $297,602 for the same period in 2023, mainly due to the fact that operating expenses for the Hawkesbury facility are expensed instead of being fully capitalized.
-
As of March 31, 2024, capital expenditures for the Hawkesbury TDP turnkey facility totaled $45,481,969, net of depreciation, while the Company contributed equity of $12,758,858 and the term loan with EDC stands at $37,773,738.
As of January 2, 2024, the Company projected that it would need a further $4,500,000 until the end of the current fiscal year, to fulfill capital purchases and working capital requirements. This amount is covered by the advances form a company under common control, 3212521 Canada Inc., owned by the controlling shareholder, and by the recently announced additional loan of $3 million from EDC.
During the quarter ended March 31, 2024, the Company continued its ramp-up at its Hawkesbury TDP turnkey facility. As the Company began to ramp-up its production, it learned that its recovered carbon black milling line could not achieve the required throughput of 1,600 lbs per hour nor produce the required particle size of 15 microns. The Company identified the deficiency and began immediate corrective action.
While corrective measures undertaken will cause some delay to Hawkesbury’s full commercialization, management believes that all should be completed by the beginning of the third quarter of 2024.
During the period, the company continued to expand its personnel at the Hawkesbury facility, adding professionals, mechanics, operators, burner specialists, and maintenance personnel. These additional personnel will lead to improved efficiency and ensure that the Hawkesbury facility has the personnel in place to fully ramp-up the facility.
Because of delays in the Hawkesbury commercialization, the Company found it wise to temporarily delay the Shamrock, Texas, TDP turnkey facility, to the second quarter of 2025.
Subsequent Events
On May 1, 2024, the Company announced the appointment of Mr. Gary Economo as Chief Executive Officer, who is an accomplished senior executive with more than four decades' experience in international finance, mergers, and acquisitions. He has also served on several boards of TSX, TSXV and CSE-listed companies. Mr. Eliot Sorella, who was President & CEO, will take on the role of Executive Chairman and retain the position of Chairman of the Board of Directors of the Company.
On May 28, 2024, the Company announced, subject to final documentation, a loan of $3,000,000 from EDC to cover projected capital expenditures and working capital, needed for the balance of the fiscal year 2024.
On May 29, 2024, the Company announced that it reached an agreement in principle with EDC, subject to final documentation, to a payment holiday for the capital and interest on the project Loan of $37,773,738 until May 2025.
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 second quarter of 2025 with completion expected by the end of the fourth quarter of 2026. 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.
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
Ecolomondo Corporation Contact
Gary Economo
Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
geconomo@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.