Business
Cielo Announces First Significant Sale of Renewable Diesel with $1.5mm Purchase Commitment
(TheNewswire) Vancouver, British Columbia, Canada – ...
About this update from Cielo Waste Solutions Corp.
[{"type":"text","content":"Cielo Announces First Significant Sale of Renewable Diesel with $1.5mm Purchase Commitment\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Vancouver, British Columbia, Canada –\n \n \n TheNewswire -\n \n \n February 23, 2021 - Cielo\nWaste Solutions (CSE:CMC), (OTC:CWSFF), (CNSX:CMC.CN), (WKN:C36)\n(\"Cielo\" or the \"Company\") is please\n \n \n d\n \n \n to announce its first significant\nsale of renewable fuels with a purchase commitment for 900,000 litres\n(238,000 gallons) of renewable diesel (the “Purchased Fuel”) at\nCAD$1.67/litre for an aggregate purchase price of CAD $1,500,000 (the\n“Aggregate Purchase Price”).  The purchaser (the “Purchaser”)\nwill also have an option to purchase another 600,000 litres\n(159,000gallons ) of renewable diesel at the same price of CAD\n$1.67/litre for a period of 6 months.\n \n \n \n \n This Purchased Fuel will be produced at the Company’s\nwaste to renewable fuel facility located in Aldersyde, Alberta (the\n“Aldersyde Facility”), anticipated to be produced over\napproximately the next three to five months. The Purchased Fuel will\nbe held on-site in storage tanks until Cielo reduces the sulphur\ncontent down to less than 15 PPM by treating it with the proprietary\nprocess that is now being fabricated. Once the desulphurization\nprocess is completed, the treated renewable fuels will be shipped as\ndirected by the Purchaser.   Management believes that the premium\nprice per litre being paid by the Purchaser confirms the Purchaser’s\nconfidence in Cielo to deliver desulphurized renewable diesel, which\ncommands a higher price than sulfured diesel and traditional\nBiodiesel.\n \n \n \n \n Upon payment of the Aggregate Purchase Price,\nanticipated to be on or about February 26, 2021, Cielo will issue\n3,750,000 share purchase warrants (the “Warrants”) to the third\nparty who brokered the purchase and sale (the “Broker”).  The\nWarrants will be exercisable at $0.135 for a period of 24 months,\nsubject to acceleration at the option of the Company, whereby the term\nof the Warrants may be reduced to 30 days following notice to the\nPurchaser.  The Company will be entitled to accelerate the term of\nthe Warrants in the event that the cl...