Business
Cielo Announces Closing of $11 Million Mortgage Loan, Partial Repayment and Amendment of Existing Loan
VANCOUVER, BC / ACCESSWIRE / February 22, 2022 / Cielo Waste Solutions Corp. (TSXV:CMC; OTCQ...
About this update from Cielo Waste Solutions Corp.
[{"type":"text","content":"Cielo Announces Closing of $11 Million Mortgage Loan, Partial Repayment and Amendment of Existing LoanVANCOUVER, BC / ACCESSWIRE / February 22, 2022 / Cielo Waste Solutions Corp. (TSXV:CMC; OTCQB:CWSFF) (\"Cielo\" or the \"Company\"), a waste-to-fuel environmental technology company, is pleased to announce:The closing of the $11 million mortgage loan previously announced on December 30, 2021 (the \"Loan\") to partially repay the $12 million mortgage loan, announced on August 24, 2021, (the \"Existing Loan\") and to provide general working capital to Cielo; andthe favorable amendment of the terms of the Existing Loan, including the removal of the Market Cap Requirements (as defined below), and the refund of a proportionate portion of the Interest Reserve (as defined below).All amounts in this press release are in Canadian dollars unless otherwise indicated.\"The settlement of the Loan represents a significant step forward in simplifying Cielo's financial structure and providing additional capital to fund the activities at Aldersyde facility and Fort Saskatchewan research and development facility\", commented Gregg Gegunde, Chief Executive Officer & Chief Operating Officer of Cielo. \"This quarter is an exciting time in Cielo's operational development as we prepare for the commissioning of Aldersyde facility. With the additional fund and the favorable amendment of the Existing Loan, we will allocate additional capital to execute on our plans at both Aldersyde and Fort Saskatchewan facilities.\"Cielo Secures Additional Working Capital and Favorable Amendment of the Existing LoanAs announced on December 30, 2021, the Company, as borrower, entered into an agreement with First Choice Financial (\"FCF\"), as lender, which was completed on February 18, 2022 (the \"Closing Date\"). As detailed in the December 30, 2021 press release, the Loan carries an annual interest rate of 3%, has a term of 24 months, maturing on February 18, 2024, subject to early repayment terms (as described below), and is secured by facility in Aldersyde and property in Fort Saskatchewan, Alberta. The early repayment terms are: (i) Cielo's right to repay the loan early, without penalty, and (ii) FCF's right to review Cielo's financial position and business and technological advances on the one-year anniversary of the Closing Date and demand repayment within 90...