Cielo Waste Solutions Corp. V.CMC

Stock Price Drop

[Olderguy1]

Today’s JV Fees announcement forgets to mention the revenue Cielo expects to get from each JV location. That is why I think there was a big selloff at the open today and demand continues to be weak.

 

Don should add this (from his Investor Presentation) to each of his JV News Releases :

• Highlights of the proposed terms of the joint venture agreements include:

  • Joint venture partners (“JV Partners”) are responsible for 100% of the financing of each project (“Project”) including land (railway access and servicing, buildings, equipment, permitting, constructing and commissioning of the JV Facilities

  • CIELO will execute the planning, construction, commissioning and operation of the JV Facilities, and overall manage the joint ventures

  • Until the JV Partners recover an amount equal to 100% of the cost of the Projects (“Project Costs”), the JV Partners will be entitled to receive 70% of the profits from the first JV Facility in each territory.

  • Upon the receipt by JV Partners of an amount equal to 100% of the Project Costs for each JV Facility, CIELO will be entitled to receive 50.1%, and the JV Partners will be entitled to receive 49.9%, of the profits from the JV Facilities.

    Cielo would receive non-dilutive funding from 5 follow-on facilities, each at an anticipated cost of ~$50M generating for Cielo $8.75M in Management Fees and a carried 50.1% Ownership valued at $125M 

[Deluney]

only the uninformed will miss out

[Kpitreal]

Great points. This is a cash cow. CMC gets new facilities and revenue with very little capex spending. 30 percent of profits followed by 50 per cent. Shows us how strongly their partners believe in the technology. Do your own DD as always this is just my opinion.