Cielo Waste loses $39.7-million in fiscal 2021 ! PEANUTS !
Cielo Waste loses $39.7-million in fiscal 2021
2021-09-20 10:11 PT - News Release
Mr. Don Allan reports
CIELO ANNOUNCES FILING OF ANNUAL FINANCIAL STATEMENTS AND ANNUAL RESULTS
Cielo Waste Solutions Corp. has filed its annual audited financial statements for the year ended April 30, 2021, related management discussion and analysis, and officer certificates on SEDAR, as required pursuant to applicable securities laws.
2021 FINANCIAL OVERVIEW
- Total assets increased by $24.8 million as at April 30, 2021 compared to April 30, 2020. The increase was due to $17.1 million increase in cash, mainly as a result of the conversion of convertible debentures and the exercise of warrants, and $8.1 million increase in property, plant and equipment related to the construction activities at Aldersyde facility.
- Total non-current liabilities decreased by $7.7 million as at April 30, 2021 compared to April 30, 2020. The decrease was due to the repayment of a secured loan and the conversion of convertible debentures.
- Working capital deficiency decreased by $2.8 million to $0.7 million as at April 30, 2021 as a result of $17.1 million increase in cash, partially offset by the increase in short-term warrant liability, deferred revenue and fees, and accounts payable and accrued liabilities compared to April 30, 2020.
- The net loss for the year ended April 30, 2021 was $39.7 million, an increase of $35.5 million compared to $4.2 million net loss in the prior year, due to the following:
- The non-cash loss on fair value of warrant liability of $28.5 million in the current year, primarily as a result of the increase of Cielo's share price from $0.04 as at April 30, 2020, to $0.92 as at April 30, 2021
- The recognition of prepaid interest costs of $3.5 million included in financing cost, primarily as a result of the early conversion of convertible debentures in the current yearThe increase of $0.9 million in research and development expenses in the current year compared to fiscal 2020 related to the Aldersyde facility
SELECTED ANNUAL INFORMATION2021 2020 2019 (RESTATED) (RESTATED) Total revenue 4,200 3,000 3,000 Financing costs 5,052,865 523,136 - General and administrative 2,623,758 2,662,113 1,326,465 Research and development 2,052,793 1,145,551 476,408 Fair value change of warrant 28,540,436 (391,144) (797,819) Net loss (39,708,974)(4,184,571)(1,308,159) Net loss per share - basic& diluted (0.11) (0.02) (0.01) Total assets 45,192,255 20,413,250 13,096,709 Total non-current liabilities 1,573,561 9,257,213 2,544,831
Don Allan, CEO, commented: "Despite the delay in the filing of our Annual Documents, the management team has been committed to improve every aspect of our performance, including internal controls and financial reporting. We believe that our investors should have confidence as a result of the audit procedures by KPMG which were supported by our management team. This is the baseline from which we will measure our performance and hold ourselves accountable to our shareholders."
In previous news releases dated August 27, 2021 (the "Aug 27 PR") and September 7, 2021, the Company announced the management cease trade order (the "MCTO") issued by the British Columbia Securities Commission (the "BCSC") pursuant to National Policy 12-203 - Management Cease Trade Orders.
The MCTO was issued in connection with the delayed filing of the Annual Documents. Upon the filing of the Annual Documents, the Company believes that it has satisfied the conditions of the BCSC in order to have the MCTO lifted.
The MCTO does not affect the ability of shareholders who are not insiders of the Company to trade their common shares of the Company. The CEO and the CFO pursuant to the MCTO, and the insiders of the Company as imposed by the Company, continue to be under a trading blackout as previously disclosed until the MCTO is lifted by the BCSC.
As disclosed in the Aug 27 PR, the previously issued financial statements for the fiscal year ended April 30, 2020, and the corresponding management's discussion and analysis (collectively, the "Restated Documents"), have been restated in the comparative figures presented in the Annual Documents. The Restated Documents replace and supersede the respective previously filed financial statements and management's discussion and analysis for the year ended April 30, 2020. The effect of the restatements does not impact the Company's cash position, or the number of shares previously reported as outstanding.
About Cielo Waste Solutions Corp.
Cielo is a publicly traded company with a proprietary technology that transforms certain types of landfill garbage into high-grade diesel, kerosene (aviation jet and marine fuel) and naphtha. Cielo's proven and patented technology is currently being deployed in the Company's Aldersyde, Alberta facility, where wood waste is currently being converted into renewable fuels. Cielo's experienced management team is well positioned with strategic partners in place to expand aggressively across Canada, into the US and then globally. The waste/feedstock that will be used in the Company's green facilities is the world's widely available and inexpensive feedstock, including household, commercial, construction garbage, used tires, railway ties, telephone poles, as well as all types of plastic, some of which currently cannot be recycled or deposited into landfills. Cielo's goal is to manufacture waste to fuel while ridding the world of unwanted and problematic garbage.
We seek Safe Harbor.