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Cielo Announces Letter of Intent for Cdn$10m Convertible Loan for Edmonton Land Purchase and Loan Repayment
(TheNewswire) Vancouver, British Columbia, Canada – ...
About this update from Cielo Waste Solutions Corp.
[{"type":"text","content":"Cielo Announces Letter of Intent for Cdn$10m Convertible Loan for Edmonton Land Purchase and Loan Repayment\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 March 3, 2021 - Cielo\nWaste Solutions (CSE:CMC), (OTC:CWSFF), (CNSX:CMC.CN), (WKN:C36)\n(\"Cielo\" or the \"Company\") is pleased to announce\nit has entered into a binding letter of intent to obtain from one or\nmore lenders (the “Lender(s”)), a non-interest bearing, unsecured\nconvertible loan of CDN$10 Million (the “Loan”).\n \n \n \n \n The net proceeds of the Loan will be used to purchase a\nsite near Edmonton, Alberta, which will be used for Cielo’s planned\n100% owned waste to high grade renewable fuel facility (“Edmonton\nFacility”).   This marks the beginning of Cielo’s expansion plans\nwhich is ahead of its previous schedule. Cielo will have the\ndiscretion to use the balance of the funds as needed, for working\ncapital purposes, and to repay in whole or in part Cielo’s largest\nsecured lender, which is currently owed approximately CDN$3.8 Million.\n \n \n \n \n The Loan is non-interest bearing and unsecured with a\nterm of 12 months (the “Term”).  Cielo will be entitled to repay\nthe Loan at any time during the Term without penalty.  During the\nTerm, until maturity or such early repayment, the Lender(s) will be\nentitled to convert the Loan at CDN$1.02 per share.  The Loan is also\nsubject to transaction fees equal to CDN$700,000 and Cielo will also\npay a cash commission to a third party equal to CDN$800,000. Cielo\nbelieves these fees and commissions are well in line with industry\nstandards and eliminate high interest payments and saves Cielo\nmillions in debt payments without significant dilution of the company\nshares with an exceptional conversion strike price.\n \n \n \n \n Don Allan, President and CEO of Cielo, stated, “We\nare truly happy to be able to announce that we are commencing a100%\nowned Cielo facility ahead of schedule. We have selected the area for\nthe new facility and will start immediately on negotiating the\npurchase. The site is located close to both CN and CP Rail, major\ndiesel refineries (clients) and feedstock supply. Purch...