Ecolomondo Releases Its Interim Financial Statements for the First Quarter of 2020 and Provides Projects Update
Montreal - TheNewswire - July 7, 2020 Ecolomondo Corporation (TSXV:ECM) (the "Company" or "Ecolomondo") releases its unaudited interim consolidated financial statements and notes hereto and its related management discussion & analysis ("MD&A") for the interim period ended March 31, 2020 (the "Interim Financial Statements").
During the first quarter of 2020, the Company continued to make substantial progress on the construction of its new Hawkesbury Thermal Decomposition ("TDP") turnkey facility. This facility will be a first of its kind and be used as a technological showpiece to promote the sale of TDP turnkey facilities globally. Management believes that once the Hawkesbury facility comes online, the Company will be able to show its proof of concept along with the commercial viability of TDP turnkey facilities and, as a result, it expects that demand for TDP turnkey facilities to increase.
To date, the Company has placed most of the purchase orders to cover long-lead equipment items such as reactors, fractionation, recovered carbon black, flare, shredding, scrubbing, and is currently negotiating with subcontractors to perform the installation of the equipment. Management estimates that as of the end of the first quarter of 2020 it has placed purchase orders covering 80% of all the equipment and services needed to complete the construction of the Hawkesbury facility.
Construction of the building also made substantial progress. Management estimates that construction of the building will be completed by the beginning of the third quarter of 2020 and will begin installation of the plant equipment in late August of 2020 while commissioning is expected to begin in the following quarter. To view updates and pictures of the construction of the Hawkesbury TDP facility, please visit the Company's website at www.ecolomondo.com.
As of March 31, 2020, capital expenditures total $9,566,931 and are essentially for site purchase, engineering, site preparation, building construction, labor, permitting and equipment. The Company has already contributed all of its equity share of $5,453,422 and has taken drawdowns totalling $7,593,756 from Export Development Canada, its lender.
Until the commissioning of its Hawkesbury TDP facility, the Company expects to continue to use the Contrecoeur pilot plant as its technological showpiece as part of its marketing strategy and also use it as a training center for the new operators needed for its Hawkesbury facility.
During this period, the Company continued to market TDP turnkey facilities, which have continued to receive domestic and international interest, and continued to make considerable progress in securing customers for all of the end-products.
Impact of the COVID-19 Pandemic
The Company has taken and will continue to take all necessary actions needed to reduce the impact of the crisis created by the coronavirus pandemic. The Company expects that the milestone to complete the plant under construction in Hawkesbury, Ontario, will not be materially impacted by the current situation. It is to note, it is impossible to determine with certitude the long-term consequences and financial implications if the current situation persists.
About Ecolomondo Corporation
Ecolomondo is a cleantech Canadian company that is commercializing its waste-to-products technology. The Thermal Decomposition Process ("TDP") converts hydrocarbon waste into marketable commodity end-products, namely carbon black substitute, oil, gas and steel. Technologies such as Ecolomondo's are expected to play an important role in resource recovery needed in today's circular economy.
The Company's main revenues will come from the sale of TDP turnkey facilities and royalties from their operations. TDP facilities will generate revenues from the sale of end-products, tipping fees and carbon credits. Ecolomondo's first focus is to market TDP turnkey facilities that use scrap tires as a feedstock, because scrap tires yield end-products with a higher commercial value, especially the recycled carbon black.
Management believes that technological breakthroughs in areas of emissions, process optimization, automation, end-product processing and safety, position Ecolomondo to become an industry leader in the resource recovery of hydrocarbon waste.
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 assurances 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.
For further information please contact:
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
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.
NOT FOR DISTRIBUTION TO U.S NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES