Fiscal Q2 2022 Financial Results VANCOUVER, BC / ACCESSWIRE / December 21, 2021 / Cielo WasteSolutions Corp. (TSXV:CMC)(OTCQB:CWSFF) ( "Cielo" or the "Company" ) today announced the financial results for the three and six months ended October 31, 2021. All amounts in this news release are in Canadian dollars unless otherwise indicated.
Q2 2022 HIGHLIGHTS
- Total assets increased by $8.5 million as at October 31, 2021 compared to April 30, 2021, mainly due to the increase in property, plant and equipment related to the asset purchase in Fort Saskatchewan, Alberta for $13 million and the construction activities at Aldersyde facility, partially offset by the decrease in cash related to the continued research and development activities and general and administrative expenditures.
- Total liabilities decreased by $1.9 million as at October 31, 2021 compared to April 30, 2021 due to the exercise of liability classified warrants, the conversion of convertible debentures and the decrease in accounts payable and accrued liabilities, partially offset by the mortgage loan for the asset purchase in Fort Saskatchewan, Alberta.
- Working capital deficiency as at October 31, 2021 was $8.2 million, compared to $0.7 million deficit as at April 30, 2021. The increase in working capital deficiency of $7.5 million was mainly due to: (i) the decrease in cash balance which was used to fund research, development and corporate activities; (ii) the addition of the mortgage loan for the asset purchase in Fort Saskatchewan, Alberta; and (iii) partially offset by the decrease in short-term warrant liability upon the exercise of warrants. The initial term of the mortgage loan will end in August 2022 and Cielo has the option to renew the loan for a further period of six months in August 2022. Cielo is planning to either renew or replace the mortgage loan by the end of the initial term in August 2022.
- The net loss for the three months ended October 31, 2021, increased by $1.9 million compared to the same period in the prior year mainly due to: (i) the increase of $1.7 million in research and development expenses mainly related to the Aldersyde facility; (ii) the increase of $1.2 million in general and administrative expenses related to salaries and benefits for additional employees hired to facilitate the growth of the Company, professional fees for TSXV filing, external audit and tax compliance services, and (iii) partially offset by the decrease of $0.9 million in fair value loss of warrant liability.
CONFERENCE CALL
Cielo will host a conference call on Wednesday, December 22, 2021 at 10:00 a.m. MT (12:00pm ET) during which Cielo's CEO and COO, Gregg Gegunde; CFO, Stephanie Li; and Chief Legal Officer and Corporate Secretary, Chris Sabat, will discuss fiscal Q2 2022 financial results, and provide an operational update, including the elimination of royalty and refinery fees, followed by a question-and-answer session. A live audio webcast of this call is available by entering the following URL into your web browser:
https://produceredition.webcasts.com/starthere.jsp?ei=1519950&tp_key=4ad1d41699
Conference Call Details:
Date: Wednesday, December 22, 2021
Time: 10:00 a.m. MT / 12:00 p.m. ET
Dial In: North America: 1-888-664-6392
Dial In: Toronto Local / International: 416-764-8659
Replay: North America: 1-888-390-0541
Replay: Toronto Local / International: 416-764-8677
Replay Passcode: 484737 #
The conference call replay will be available until December 29, 2021 and the webcast audio will be available until March 22, 2022.
Cielo remains committed to providing updates to shareholders on a timely basis as the Company continues to meet its milestones, and as new key objectives are established.
About Cielo Waste Solutions Corp.
Cielo's strategic intent is to become one of Canada's leading waste to fuel companies using its environmentally friendly, economically sustainable technology. Cielo developed a process that can convert waste feedstocks, including plastics, rubber, organic material and wood derivative waste to fuel. Cielo's business model is to source feedstocks from a wide variety of potential suppliers and convert the feedstocks into fuels to be sold to a wide variety of potential purchasers. The Company plans to construct facilities that will convert waste feedstocks to energy fuels, such as diesel, kerosene, and naphtha. The diesel from Cielo's distillate could be used in diesel engines. Kerosene could be suitable for aviation or marine jet fuel, and naphtha could be used to assist in transporting heavy oil. Cielo's goal is to convert waste to fuel while ridding the world of unwanted and problematic garbage.
www.cielows.com
https://www.accesswire.com/679056/Cielo-Announces-Fiscal-Q2-2022-Financial-Results