news
Cielo extends mortgage loan to 24 months
2022-03-20 19:02 ET - News Release
Mr. Chris Sabat reports
CIELO ANNOUNCES EXTENSION OF TERM LOAN
Cielo Waste Solutions Corp. has extended the term of a previously announced mortgage loan from 12 months to 24 months.
On August 24, 2021, the Company announced the closing of a $12.0 million mortgage loan (the "Loan") in connection with the acquisition of a 60-acre industrial site with a 31,750 square foot industrial building in Fort Saskatchewan, Alberta. The Loan had a 12-month term, which has been extended to 24 months, maturing on September 1, 2023.
As announced on February 22, 2022, the Company repaid $5.5 million of the Loan. The remaining outstanding principal balance of the Loan is $6.5 million after the partial repayment.
In consideration for the Loan Extension, Cielo has agreed to use the proceeds of the exercise of any and all bonus warrants held by First Choice Financial ("FCF"), the lender of the Loan (whether issued in respect of the Loan or any other loans owed to FCF thereafter) to pay down the balance of the Loan.
"FCF is pleased to support Cielo's vision to lead the waste-to-fuel industry using environmentally friendly, economically sustainable technology", said Vikas Sharma, Chief Executive Officer of FCF. "FCF looks forward to continuing to support Cielo in achieving its milestones."
The Loan Extension has greatly improved the Company's liquidity and reduced the short-term liabilities that become due in the next 12 month