CALGARY, AB / ACCESSWIRE / September 30, 2022 / Cielo Waste Solutions Corp. (TSXV:CMC)(OTCQB:CWSFF) ( 'Cielo' or the 'Company' ), a waste-to-fuel environmental technology company, today reports financial results for the three months ended July 31, 2022. All amounts in this news release are in Canadian dollars unless otherwise indicated.
- Total assets decreased by $19.7 million as of July 31, 2022 compared to April 30, 2022, primarily due to the decrease in property, plant and equipment offset by an increase in cash, and prepaid expenses. During the current quarter, Cielo recognized an impairment loss on property, plant and equipment at its facility in Aldersyde, Alberta (the 'Aldersyde Facility') of $25.4 million due to the decommissioning of current operations. On July 8, 2022, Cielo completed a public offering of units, issuing 139.6 million units at a price of $0.07 per Unit, for gross proceeds of approximately $9.8 million. The increase in cash resulted from proceeds of the offering net of share issuance costs. A portion of the proceeds was advanced to the engineering, procurement, and construction contractor to fund the fabrication of Cielo's research and development facility (the 'R&D Facility') resulting in the increase in prepaid expenses.
- Total liabilities decreased by $1.0 million as of July 31, 2022 compared to April 30, 2022 due to the decrease in accounts payables of $1.4 million offset by an increase of $0.4 million in long-term loans. The decrease in accounts payable was a result of a general decrease in activity associated with construction and research and development at the Aldersyde Facility as Cielo focused on development of the R&D Facility.
- Total non-current liabilities decreased by $2.3 million as of July 31, 2022 compared to April 30,2022 due to the reduction of accounts payables resulting from decreased activity related to the Aldersyde Facility; and the reclass of royalty payable current to non-current as Cielo obtained the requisite approval of holders of the royalties to extend the repayment to January 2024.
- The net loss for Cielo for the three months ended July 31, 2022 was $27.6 million, an increase of $24.6 million from $3.0 million for the three months ended July 31, 2021. The increase in net loss is primarily due to recognition of an impairment loss on the property, plant and equipment at Aldersyde of $25.4 million, offset by a decrease in general and administrative expenditures of $0.6 million as Cielo incurred costs relating to the TSXV listing in the prior year quarter; a decrease in research and development expenditures of $1.1 million as Cielo reduced activity at Aldersyde and ultimately suspended Aldersyde operations.
- Working capital $9.0 million at July 31, 2022 compared to $1.2 million at April 30, 2022 primarily due to the increase in cash from proceeds of the public offering of units completed on July 8, 2022.
SELECTED FINANCIAL INFORMATION
Cielo will host a conference call on October 4, 2022 at 1 p.m. MT (3:00 p.m. ET) during which Cielo's CEO Ryan Jackson and CFO Jasdeep K. Dhaliwal will discuss fiscal Q1 financial results, followed by a question-and-answer session. A live audio webcast of this call will be available by entering the following URL into your web browser:
Conference Call Details:
Date: October 4, 2022 Time: 1 p.m. MT / 3 p.m. ET
Dial In: North America: 1-888-664-6392
Dial In: Toronto Local / International: 416-764-8659
Replay: North America: 1-888-390-0541
Replay: Toronto Local/International: 416-764-8677
Replay Passcode: 801038#
The conference call replay will be available until October 11, 2022.
For further information please contact:
Ryan Jackson, CEO
Phone: (403) 348-2972
Cielo Investor Relations
Cielo Waste Solutions Corp. was incorporated under the Business Corporations Act (British Columbia) on February 2, 2011. Cielo is a publicly traded company with its shares listed to trade on the TSX Venture Exchange (' TSXV ') under the symbol 'CMC,' on the Frankfurt Exchange (' DAX ') under the symbol 'C36', as well as on the OTC Venture Market (' OTCQB '), under the symbol 'CWSFF.' The Company's strategic intent is to become a leading waste-to-fuel company. The Company intends to use economically sustainable technology while minimizing the environmental impact. Cielo has a patented process that can convert waste feedstocks, including organic material and wood derivative waste, to fuel. Having demonstrated its ability to produce diesel and naphtha from waste, Cielo's business model is to construct additional processing facilities. Cielo's objective is to generate value by converting waste to fuel, while fueling the sustainable energy transition.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as 'forward-looking statements') within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as 'anticipate', 'achieve', 'could', 'believe', 'plan', 'intend', 'objective', 'continuous', 'ongoing', 'estimate', 'outlook', 'expect', 'may', 'will', 'project', 'should' or similar words, including negatives thereof, suggesting future outcomes.
Forward-looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Cielo is making forward looking statements, with respect to, but not limited to: the conference call, including the date and time, speakers and agenda, and the period of time during which an audio replay will be available.
Investors should continue to review and consider information disseminated through news releases and filed by the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV), nor OTCQB nor WKN, have reviewed, and do not accept responsibility for the adequacy or accuracy of, the content of this news release.
SOURCE: Cielo Waste Solutions Corp.
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