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Cielo Waste Solutions Corp. V.CMC

Alternate Symbol(s):  V.CMC.WT | CWSFF

Cielo Waste Solutions Corp. is a Canada-based waste-to-fuel environmental technology company. The Company's business model is to source waste feedstock from industrial producers and other suppliers and convert the feedstock into valuable fuels. The Company's Thermal Catalytic Depolymerization (TCD) process converts waste feedstocks, including plastics, rubber, organic material, and wood derivative waste into valuable fuel. Its facilities are designed to operate with no harmful emissions and through the conversion of waste-to-fuel, it can help reduce methane emissions from landfills, as well as reduce reliance on imported biofuels made from agricultural products. The Company’s Aldersyde Demo Facility is located approximately 25 kilometers south of Calgary, features a 2.5-acre site and a plant which provides proof of concept that can convert wood waste biomass to fuel.


TSXV:CMC - Post by User

Comment by TradeTraceron Feb 12, 2021 11:58am
269 Views
Post# 32552850

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:PapaSchmuck

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:PapaSchmuckWarrants are usually given by a company as an incentive to get people to invest into their company. They have a strike price, an expiry date, and come with certain conditions that can change certain terms.

For Cielo it's a catch-22 with the warrants they've issued. If the warrants get excercised (don't expire) it's cash they get from the warrant holders they can use towards building their plants, doing more research, paying their employees, etc but in getting excercised the total share count goes up which results in dilution. That's why you see a 600 million shares for Cielo when fully diluted. 600 million shares has a negative impact on EPS (Earnings per share), P/E ratios, and various other metrics investors use to gauge a company so could hurt the long term outlook.

If the warrants expire, the company doesn't get any money but no new shares get added to the float. The future looks bright for Cielo, so less shares should equal higher share prices in the long term.

Personally cash is better than debt when you are just starting out like Cielo is as the smaller businesses don't have the clout to negoiate the best (or even good) financing terms with lenders, but I suspect down the road a reverse split will have to be done to help boost their numbers/ boost their image
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