Cielo Announces Assignment of $2.6MM Mortgage Loan with Aldersyde Asset Sale

CALGARY, Alberta, Nov. 28, 2024 (GLOBE NEWSWIRE) — Cielo Waste Solutions Corp. (TSXV:CMC; OTC PINK:CWSFF) (“Cielo” or the “Company”) has made an important announcement regarding its business operations. The Company is selling a portion of its currently inactive assets, which includes the assignment of a mortgage loan valued at $2.6 million (the “Mortgage Loan”).

Background Information

Recently, Cielo completed an asset acquisition in November 2023. During this acquisition, the Company obtained exclusive licensing rights in Canada to use patented technologies from Expander Energy Inc., specifically EBTL™ and BGTL™, among other assets. These technologies focus on converting biomass waste into renewable fuels.

Cielo's goal is to enhance its existing Thermal Catalytic Depolymerization (TCD) technology while using the newly acquired licensed technologies to speed up its revenue targets.

Strategic Direction

Following the 2023 acquisition, Cielo has decided to focus on the licensed technologies and is currently pursuing the acquisition of additional assets from Rocky Mountain Clean Fuels Inc. This strategic move means that Cielo will dispose of its TCD technology and related assets, which includes the land in Aldersyde, Alberta (the Aldersyde Property), associated with the Mortgage Loan.

Management at Cielo believes that selling these assets, which collectively represent the old TCD technology, will help streamline the Company’s operations and shift focus to the licensed technologies that are closer to market readiness.

Cielo has entered into an asset purchase agreement (the “Asset Purchase Agreement”) dated November 28, 2024, with a private Alberta corporation (the “Purchaser”) to finalize the sale of the assets for a total purchase price of $3.9 million.

Transaction Details

The Asset Purchase Agreement stipulates the terms under which Cielo will sell its assets, including the property and related equipment. Overall, the deal will eliminate the Company’s obligations under the existing Mortgage Loan.

The acquisition price entails various payment arrangements, including a $300,000 payment at closing, the assumption of the $2.6 million Mortgage Loan by the Purchaser, and a promissory note in the amount of $1 million secured against the Aldersyde Property. This promissory note will carry an interest rate of 7.5 percent and has a structured repayment schedule.

According to Cielo's CEO, Ryan Jackson, this strategic move allows the Company to concentrate on producing renewable fuels while transitioning away from developing new technologies.

Future Focus

Cielo aims to use the licensed technologies to further its BioSynfuels® initiative. This focus aligns with the Company's vision of introducing market-ready solutions and expanding operations at its Carseland Facility.

Conclusion

In conclusion, Cielo’s recent measures to sell non-essential assets and assign the associated mortgage loan signify a clear effort to refine its operational focus towards renewable fuel production using its licensed technologies. The Company continues to prioritize efficiency and market readiness in its approach moving forward.

Cielo, finance, asset