Business
Cielo Secures $1M Loan from Long-Time Supplier and Contractor
(via TheNewswire) Vancouver, British Columbia, Canada - TheNewswire - May ...
About this update from Cielo Waste Solutions Corp.
[{"type":"text","content":"Cielo Secures $1M Loan from Long-Time Supplier and Contractor(via TheNewswire)\n \n \nVancouver, British Columbia, Canada - TheNewswire - May 5, 2020 - (CSE:CMC) (CNSX:CMC.CN) (OTC:CWSFF) Cielo Waste Solutions Corp. (\"Cielo\" or the \"Company\") announces that it has issued a promissory note (the \"Note\") in favour of 1823741 Alberta Ltd., operating as Kwik-Fab Energy Services, a long-time supplier and contractor of the Company's (the \"Lender\" or \"Kwik-Fab\"). \n\n \n \nKwik-Fab, as a result of its solid long-term relationship with Cielo, has agreed to provide additional support to Cielo by converting $1 million of its receivable from Cielo into a $1 million term loan (\"Loan\"). As Cielo's prime contractor, management believes Kwik-Fab has illustrated its confidence in Cielo's proprietary waste-to-fuel technology. The Loan will allow Cielo to move one step closer to completing the upgrades at the Company's Aldersyde facility, which are being engineered to increase continuous flow production of renewable fuels from 100 liters an hour to 1,000 liters an hour.\n\n\n \nThe principal amount of the Loan is subject to simple interest at a rate of 7% per annum (increasing to 12% per annum following and in the event of a default). The aggregate unpaid principal amount of the Loan, all accrued and unpaid interest and all other amounts payable under the Note will be due and payable on April 30, 2022, unless extended by mutual agreement, however the Company may prepay the Loan in whole or in part at any time or from time to time without penalty or premium. The Loan is secured against all or substantially all of the assets of the Company, as outlined in a general security agreement corresponding to the Note, subordinated to all prior secured loans and secured convertible debentures. \n\n\n \nMark Haldane, Vice-President of Kwik-Fab, stated \"Over the past 6 years of working closely with Cielo, we have become very strong believers in Cielo and their proprietary technology that cost effectively converts garbage to high grade renewable fuels. We believe that Cielo is on the cusp of great things and are excited about being a part of their success.\" \n\n \n \nDon Allan, Cielo's President & CEO further commented \"We so appreciate the support from Kwik-Fab and are looking forward to being back up and running once our workers can safely ...