Business
Cielo Announces $11 Million Mortgage Loan, Anticipated Partial Repayment Of Existing Loan, and Engagement of Investor Relations Firm
VANCOUVER, BC / ACCESSWIRE / December 30, 2021 / Cielo Waste Solutions Corp. (TSXV:CMC)(OT...
About this update from Cielo Waste Solutions Corp.
[{"type":"text","content":"Cielo Announces $11 Million Mortgage Loan, Anticipated Partial Repayment Of Existing Loan, and Engagement of Investor Relations FirmVANCOUVER, BC / ACCESSWIRE / December 30, 2021 / Cielo Waste Solutions Corp. (TSXV:CMC)(OTCQB:CWSFF) (\"Cielo\" or the \"Company\") is pleased to announce:an agreement for a $11 million mortgage loan to partially repay the Existing Loan (as defined below) and to provide general working capital to Cielo;the anticipated favorable amendment of the terms of the Existing Loan; andthe engagement of a New York based investor relations firm, to assist the Company in developing its investor relations program and expanding its access to institutional investors.All amounts in this news release are in Canadian dollars unless otherwise indicated.Cielo Secures Additional Working Capital and Generates Interest Savings and StabilityOn August 24, 2021, the Company announced the closing of a $12 million mortgage loan (the \"Existing Loan\") with First Choice Financial (\"FCF\") and KV Capital Inc. (collectively the \"Existing Lenders\"). Pursuant to the agreement of the Existing Loan:The term of the Existing Loan is 12 months, and the initial term of the Existing Loan will end in August 2022;The Existing Loan is subject to an annual simple interest rate of 6%;The Existing Loan is secured by the Company's property in Fort Saskatchewan and the facility in Aldersyde, Alberta (the \"Assets\");For the initial 12 months term, total interest of $720,000 was withheld by the Existing Lenders as an interest reserve (the \"Interest Reserve\") and applied against the initial 12 monthly payments of interest; andThe Existing Loan is subject to a special covenant in relation to the Company's market capitalization, which entitled the Existing Lenders to request partial repayments of the Existing Loan when the Company's market capitalization is below certain threshold (the \"Market Cap Requirements\").The Company, in accordance with its current business strategy, set out to renegotiate the terms of the Existing Loan with goals including eliminating the Market Cap Requirements, obtaining additional capital, and reducing the interest costs associated with the Existing Loan.On December 29, 2021, the Company, as borrower, entered into an agreement with FCF, as lender, pursuant to which Cielo and FCF have agreed that:FCF to advance to Cie...