Vancouver, BC, April 17, 2014 - Cielo Waste Solutions (CSE:CMC) is one of the latest new listings on the Canadian Securities Exchange, and is trading under the symbol "CMC". Originally a gold mining company, Cielo announced in March that it was changing its business to biodiesel refining.
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The US, Canadian and most European governments require a minimum of 2% - 10% of diesel fuels to be comprised of renewable diesel. The company reported that in 2011, bio-diesel requirements for Western Canada alone were 423.5 million litres, and with only 42 million litres being produced, the remaining 89.9% had to be imported.
In March, Cielo announced that under the Alberta Bioenergy Producer Credit Program, the Alberta government will provide the comlpany with a $0.13 per litre production subsidy, which could add up to $5.7 million dollars over the next 3 years.
This was followed by the announcement that Cielo had received its first $3 million commercial purchase order for its innovative technology - an order for the supply of a single "200 liters per hour" refinery. This refinery will first be in production in Alberta until commercial viability of the technology has been proven, whereupon it will be sold and shipped overseas to Australia.
Don Allan, president & CEO stated "Our Company is now entering into a period of significant growth and with this first order we will see many more orders follow quickly. This location will allow Cielo to showcase its innovative technology on the other side of the world. Countries around the world are searching for a solution to their landfill and diesel problems, and we believe Cielo can offer the world the best and greenest solution."
The company has announced a best efforts, brokered private placement offering of secured convertible debentures, which is to be handled by Chippingham Financial Services. The offering, set at a minimum of $3 million, is priced at $2,500, pays a 12% interest rate, and will be convertible at the option of the holder at $0.25 per share. The offering, which is expected to close at the end of April, will mature two years from the date of issuance.
The company recently announced that they have signed a Letter of Intent, subject to a number of conditions, with the Red Deer County to construct a Renewable Diesel Refinery and a Waste Processing System in collaboration with the Horn Hill Transfer station in the County of Red Deer Alberta. In the general terms, Cielo intends to purchase land adjacent to the Horn Hill Transfer Station and also lease the currently operating waste transfer facility.
The shares are trading at $0.15, and with 28.7 million shares outstanding, the company is capitalized at $4.3 million.
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Barry Morgan, CFO
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