Cielo Closes Additional Private Placement and Settles Debt Vancouver, British Columbia, Canada - TheNewswire - September 15, 2020 - (CSE:CMC) (CNSX:CMC.CN)(OTC:CWSFF) Cielo Waste Solutions Corp. ("CIELO" or the "Company") announces that it has raised $624,000 in gross proceeds in additional tranches ("Additional Tranches") of its private placement offering ("Offering") of convertible debenture units (the "Unit(s)"), initially announced on March 30, 2020. A total of $3,075,642 has now been raised in the Offering.
Each Unit consists of one (1) $1,000 unsecured convertible debenture (the "Debenture(s)") plus 7,500 share purchase warrants (the "Warrant(s)"). The Debentures bear interest at a simple rate of 15% per annum with the initial three (3) years of interest to be prepaid (the "Prepaid Interest") on the date of issuance of the Debentures (the "Issue Date") by the issuance of common shares (the "Prepaid Interest Shares") at a price of $0.07 per Prepaid Interest Share. The principal of the Debentures (the "Principal") together with all accrued interest exceeding the Prepaid Interest (the "Interest Balance") will be repaid 48 months from the Issue Date unless repaid earlier by CIELO without penalty or converted by the holder(s) thereof, any time after four months and a day following the Issue Date at a price of $0.05 for the Principal and at $0.07 for the Interest Balance.
Each Warrant has a term of 48 months from the Issue Date (the "Warrant Term") and an exercise price of $0.07 per common share, subject to acceleration in the event that the common shares of CIELO, listed on a recognized stock exchange, trade at $0.15 or higher for at least five (5) consecutive trading days, in which event CIELO may provide a notice to holders that the Warrant Term will terminate 30 days from the date of notice.
Although the Offering is non-brokered, the Company may, as determined in its sole discretion, pay reasonable customary brokers' and/or finders' commissions in connection with the completion of the Offering of up to 8% in cash of the gross proceeds raised by such broker(s)/finder(s) and issue finder warrants (the "Finder Warrants") of up to 8% of the total number of common shares that would be issued to subscribers introduced to the Company by such broker(s)/finder(s), if 100% of the Principal under the subject Debentures is converted. The Finder Warrants have a 48-month term from the date of issue and an exercise price of $0.07 per share.
At the discretion of the Company, the Offering may be extended and/or increased, subject to approval from the Canadian Securities Exchange as applicable. Net proceeds of the Offering are being used to scale-up production of high-grade renewable fuel at the Company's green waste to renewable fuel facility in Aldersyde, Alberta (the "Aldersyde Facility"), as well as for general working capital purposes.
A total 624 Units were issued pursuant to the Additional Tranche for gross proceeds of $624,000, including 4,680,000 Warrants and 3,689,999 Prepaid Interest Shares. Pursuant to the Additional Tranche, the Company also issued 345,600 Finder Warrants and paid $31,840 in cash commissions. To date, 3,075.64 Units have been issued for gross proceeds of $3,075,642.
All securities issued pursuant to the Offering are subject to a statutory four month hold period.
SHARES FOR DEBT
In addition to the Offering, Cielo has agreed to settle amounts owing to certain arm's length third parties for an aggregate of $91,853 by the issuance of 1,530,883 common shares at a price per share of $0.06. The shares are subject to a statutory hold period of 4 months from the date of issue.
Don Allan, President and CEO of Cielo, stated "It is great to see the interest Cielo is generating in the trading of our shares. The improvements to our waste to high grade fuels process that we have implemented at our Aldersyde Facility are proving to be very successful. We are seeing higher conversion rates of the waste feedstock to distillate and will soon be in a position to be running the Aldersyde Facility on a continuous flow basis. We will release production numbers in the near future."
On behalf of the Board of Directors of the Company,
Cielo Waste Solutions Corp.
"Don Allan"
Don Allan, President/CEO/Director