Cielo Waste Solutions says it has made its first significant sale of renewable fuels, with a purchase commitment for 238,000 gallons of renewable diesel at $1.32 per liter for an aggregate purchase price of $1.19 million. The purchaser will also have an option to purchase another 159,000 gallons of renewable diesel at the same price for a period of six months.
This purchased fuel will be produced at the company’s waste to renewable fuel facility located in Alberta, Canada, anticipated to be produced over approximately the next three to five months. The fuel will be held on-site in storage tanks until Cielo reduces the sulfur content down to less than 15 PPM by treating it with the proprietary process that is now being fabricated. Once the desulphurization process is completed, the treated renewable fuels will be shipped as directed by the purchaser.
“After several years of advancing our waste to high-grade renewable fuel technology, we are finally in a position to start reaping the rewards of our efforts,” says Don Allan, president and CEO of Cielo. “These revenues are expected to put Cielo into immediate positive cash flow and may also open up additional non-dilutive financing opportunities for Cielo should they be required. This is truly a milestone in the long journey for Cielo and its shareholders and we are pleased to prove to the world that we are here to stay and make a serious effort to help with the world garbage crises.”
Upon payment of the aggregate purchase price, anticipated to be on or about Feb. 26, Cielo will issue 3,750,000 share purchase warrants to the third party who brokered the purchase and sale. The warrants will be exercisable at $0.135 for a period of 24 months, subject to acceleration at the option of the company, whereby the term of the warrants may be reduced to 30 days following notice to the purchaser. The broker will also receive a 5% cash commission.
Photo: Don Allan