Cielo Waste Solutions Corp. V.CMC

Sweetheart deal

[lscfa]

Ceilo sells the original tech to directors for peanuts. They spend $2.5 million to improve tech and license it back to Ceilo for $2 million per 4000 lph plant. This stinks.

[lscfa]

Excerpt from contract on sedar....

[lscfa]

It gers worse the more I dig.....Ceilo buys the original tech from Blue Horizon for $4.25 million plus assumed debt. Ceilo then sells the tech to 1888 (owned by CEO and the directors) for $2.00 (not a typo). 1888 spends $2.5 million to improve the tech and licenses it back to Ceilo for outrageous royalties. The improvement included a hot oil boiler which did not work. Ceilo (not 1888) spent a lot

[pjmac101]

Great digging and thanks for sharing. I suspected there was some sort of shady agreements that Cielo management doesn't go out of its way to talk about. This is why Cielo has a ceiling on the stock. The fact Cielo doesn't outright own the IP is very damaging to shareholders and I bet most shareholders werent aware of this. I am beginning to wonder if some posters are related to Cielo given

[sam2100]

Completely disagree, profit arrangements are the norm in the small cap world. If investors don't know this, they are incredibly naive. It looks like Cielo was trying to hide this information.........on SEDAR, that is funny. If you look closely at Cielo's profit sharing arrangement it is substantially less than what is found in the corporate arrangements of the mega cap companies. If

[Mari2019]

  how naive of a comment. First you blindly read and believe comments from an anonymous poster on a forum. Then you yourself bash without doing your own DD on a company. Lazy and uninformed. Why don't you and Isfca contact Don Allen directly with your questions instead of bashing without knowing the reasons for the numbered company holding the patent.  in the end the intention

[pjmac101]

Hey that's a good point about protecting it from being taken over by a hostile takeover attempt. Without that asset the IP is safe and the licensing agreement is valuable. Fair point.

[lscfa]

B.S.   If someone new buys Ceilo the contract between Ceilo and 1888 remains, which permits Ceilo to acquire the IP and terminate the royalty steam to 1888 for the stipulated purchase price in the contract. Who owns Ceilo is irrelevant. 1888 is just a greedy money grab by CEO and directors.

[Mari2019]

[lscfa]

The deal with 1888 was amended Nov 01, 2017. See below.  If each 4000 lph plant has to pay $0.05/litre royalty that's $1.65 million/yr. it makes sense for each plant to pay the termination fee to end the royalty so $1200 x 4000 = $4.8 million. Add this to the $50 million capex to build each plant.