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CALGARY, AB / ACCESSWIRE / February 13, 2023 / Cielo Waste Solutions Corp. (TSXV:CMC)(OTCQB:CWSFF) ("Cielo" or the "Company"), a waste-to-fuel environmental technology company, is pleased to provide an update with respect to the Company's previously announced proposed private placement of secured convertible notes for up to an aggregate principal amount of up to CAD $5,000,000, which is being amended to a CAD $5,000,000 private placement equity offering (the "Financing") (details below) with a designated affiliate or assignee of Crestmont Investments, LLC (in either case referred to as "Crestmont"), a New York-based investment firm focused on emerging opportunities in decarbonization, healthcare, technology, and special situations, and a non-arm's length party to Cielo.
In addition, the Company announces that it has negotiated an agreement in principle with First Choice Financial Incorporated ("FCF") for the settlement of the $4,500,000 principal outstanding on a secured mortgage loan initially obtained to acquire the Company's Fort Saskatchewan property, held by FCF and KV Capital Inc. ("KV"), through the issuance of securities of the Company (the "Secured Debt Repayment"). The Company expects to finalize and execute a definitive agreement setting out the terms of the Secured Debt Repayment in the coming days and will announce the material terms at that time. Collectively, management believes the Financing and the Secured Debt Repayment will enhance the Company's financial position and support Cielo's continued progress in advancing the Company's research and development facility (the "R&D Facility"), targeted for commissioning by calendar Q2 2023, and further aid the goal of providing investors with long-term economic sustainability.
David Beach, Managing Director of Crestmont, commented, "Our initial due diligence has led us to greater confidence in management and its plans for full-scale commercialization. Based on this initial review, we are pleased to amend our terms to allow for an earlier equity investment in the company."
Ryan Jackson, CEO of Cielo, commented, "We are extremely pleased to share news of this proposed private placement with Crestmont, who Cielo views as an investment partner of the highest calibre with industry expertise and knowledge that we believe will prove invaluable as we continue to expand our operational capabilities. Strategically, this arrangement affords Cielo the necessary funds to advance further toward commercialization."
Cielo Provides Update on Previously Announced Private Placement and Announces Intended Securities for Debt Transaction (accesswire.com)