Cielo secures funding to buy site for Edmonton facility

In Canada, Cielo Waste Solutions has entered into a binding letter of intent to obtain from one or more lenders a non-interest bearing, unsecured convertible loan of C$10 million. The net proceeds of the loan will be used to purchase a site near Edmonton, Alberta, which will be used for Cielo’s planned 100% owned waste to high grade renewable fuel facility. This marks the beginning of Cielo’s expansion plans which is ahead of its previous schedule. Cielo will have the discretion to use the balance of the funds as needed, for working capital purposes, and to repay in whole or in part Cielo’s largest secured lender, which is currently owed approximately C$3.8 Million.
The loan is non-interest bearing and unsecured with a term of 12 months. Cielo will be entitled to repay the loan at any time during the term without penalty. During the term, until maturity or such early repayment, the lender(s) will be entitled to convert the loan at C$1.02 per share. The loan is also subject to transaction fees equal to C$700,000 and Cielo will also pay a cash commission to a third party equal to C$800,000. Cielo believes these fees and commissions are well in line with industry standards and eliminate high interest payments and saves Cielo millions in debt payments without significant dilution of the company shares with an exceptional conversion strike price.