Cielo Waste Solutions Corp. V.CMC

Help me out with the deb issue

[Maxmoe]

Just seems strange to me.like something going on behind closed doors I don't know about. I haven't seen any discussion on the board here about 2 key factors.
1) the press release said the issue fees were $1.5 million. On a $10 million private placement to existing shareholders via FCF ( who?) ? That's 15% commish and 'costs'. Most bought deal equity financing of this size is done for 6% ish. 

2) by itself, I could dismiss the generous fees. But wtf is the deal with almost immediately converting the entire deal into stock? I REALLY don't get that. 

so combined it reminds me of the old poker saying. If you look around the table and you don't know who is the mark ...... it's you. 

can someone explain because I like the storyline but I don't know the cast.

[Maxmoe]

So by my math the buyers paid $1.02 for the shares, never collected any interest, and the company only banked 85%, so $.86 per share. If they just sold straight up stock in a private placement, at 91, and paid 6% commish on the 91 the company would bank about the same $0.86. So the trusting existing shareholders paid 1.02 just so FCF could skim a cool mill off the top? I see from google FCF has

[DougInGreen]

Just had to read one more sentence. " Management is pleased with the structure of the raise as it eliminates high interest payments and will save Cielo a significant amount in debt payments."  Issuing shares takes a few months and requires an underwriter to take on that risk. Seeing as how Cielo has no revenue I would say that in addition to the time issue the underwriter

[lscfa]

Co. probably realized it will not be able to raise additional debt if that convertible debt is outstanding so begged the holder to convert now.   Nobody's going to lend Cielo 100% of the Edmonton plant costs. Ceilo will have to kick in some equity.   Dec 21/20 - Cielo has executed a consulting agreement with an arm’s length third party for the purposes of financing, development and

[RevT79]

Man ! Go take a walk and take with you your negative attitude towards cmc!! Why are you here? if you don't like the company go invest in something else! there will be a lot of people that want to lend money to ciello as they are actually doin something good for the earth!!!

[DougInGreen]

Vehemently disagree. Successful investors spend every waking minute looking for new information that would impact their thesis in a negative way. The ONLY value in boards like this is to come across information that you might not have considered. If people have legitimate concerns backed by numbers that they want to discuss they are doing you a favour by bringing it up here. I welcome those

[JustLookn]

Agree 100%, did we exchange messages on discord yesterday?  I agree fully.

[Stockhudson]

agreed    and I like you I still have some concerns    I have stopped nibbling at this point