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CALGARY, Alberta, March 14, 2023 (GLOBE NEWSWIRE) -- Cielo Waste Solutions Corp. (TSXV: CMC; OTCQB: CWSFF) ( “Cielo” or the “Company” ), a waste‐to‐fuel company, today announced its financial results for the three and nine months ended January 31, 2023. Copies of the unaudited interim financial statements and related management's discussion and analysis can be found on the Company's issuer profile at All financial information in this news release is reported in Canadian dollars, unless otherwise indicated.
Jasdeep K. Dhaliwal, CFO of the Company stated“Over the previous eight months, the management team has strived to make strategic decisions to minimize our corporate expenses and allocate our expenditures to the fabrication of the R&D Facility. As we begin commissioning of the R&D facility, we are proud of all the hard work our departments have put in to managing costs to achieve this goal.”
Q3 2023 HIGHLIGHTS
The Company continued to focus during and subsequent to the quarter ended January 31, 2023 on progressing toward the commercialization of its waste‐to‐fuel technology while continuing its strategy of managing costs.
| (Thousands of dollars) || January 31, 2023 || April 30, 2022 |
| Total assets || 31,983 || 53,531 |
| Total liabilities || 19,415 || 19,932 |
| Total non-current liabilities || 9,985 || 16,959 |
| Working capital || (5,233) || 1,164 |
| Periods ended January 31 || Three months ended || Nine months ended |
| (Thousands of dollars, except per share |
| Financing costs || 620 || 249 || 1,838 || 1,222 |
| General and administrative || 1,137 || 1,944 || 3,021 || 5,153 |
| Research and development || 442 || 777 || 1,406 || 4,568 |
| Share based compensation || 143 || 1,208 || 270 || 1,399 |
| Net loss per share – basic & diluted || (0.003) || (0.007) || (0.042) || (0.042) |
General and administrative costs decreased $2.1 million (9‐month period) and $0.8 million (3‐month period) from their comparative periods due to reduced spending in all expenditures in the category. Research and development costs decreased during the quarter from the comparative period, primarily due to Cielo's focus on design and fabrication of the R&D Facility. Other income increased significantly in the quarter from the comparative period, primarily due to Cielo's lease of its property in Fort Saskatchewan, Alberta, as previously announced, providing for an annual base rent of $0.6 million, plus 90% of the occupancy costs (such as property taxes, insurance, and building maintenance). For the three months ended January 31, 2023, the Company had a net loss of $2.3 million, which is consistent with prior periods as expected. Net loss for the nine months ended January 31, 2023 was $20 million higher than same period in the previous year primarily resulting from the decommissioning of the Company's prior facility in Aldersyde, Alberta (the“Aldersyde Facility”), however this was offset by the decreases in general and administrative and research and development expenditures noted above. During the quarter ended January 31, 2023, Cielo had negative operating cash flow, consistent with prior periods and as expected in a pre‐revenue business. Financing costs increased approximately $0.4 million for the quarter and $0.6 million for the 9 month period, primarily due to the Company not capitalizing borrowing costs on qualifying assets as the construction in progress ceased at the Aldersyde Facility, offset by lessened interest expense as debt decreased from the comparative period.
Throughout the quarter, the Company continued to work with Crestmont Investments, LLC (“ Crestmont ”) toward the completion of an up to $5 million private placement offering of units (the“ Unit Offering ”) to support ongoing R&D and operating costs, subject to completion of due diligence. The terms of the Unit Offering were amended from an offering of secured convertible debentures to an offering of units comprised of common shares and warrants, as announced on February 14, 2023. Subsequent to the quarter end, the Company entered into a securities for debt agreement for the payment in full of $4.5 million by the issuance of units comprised of common shares and warrants (the“ Shares for Debt Transaction ”), freeing up future cash flows for operations and reducing interest charges. The terms of the Shares for Debt Transaction were announced on February 23, 2023. The Company completed the fabrication of its research and development facility (the“R&D Facility”) and subsequent to the quarter end, commissioning of the R&D Facility commenced at Aldersyde. The Company completed the sale of approximately 80,000 litres of distillate to a TSX listed midstream refiner. The Company developed a performance‐based retention program for key personnel.
In its final quarter ended April 30, 2023, Cielo anticipates:
The completion of the Securities for Debt Transaction, subject to the approval of the TSX Venture Exchange (the“ Exchange ”) to result in a reduction of $4.5 million in secured debt. The completion of the Unit Offering, subject to the completion of due diligence and the approval of the Exchange, to result in gross proceeds of up to $5 million toward the R&D Facility and general working capital. The completion of commissioning of the R&D Facility. Subsequent to the commissioning of the R&D Facility, the Company intends to continue to utilize the R&D Facility to generate the data required to design and define the economics of its first full‐scale commercial facility, with the Company's primary business objective being the initiation in calendar 2023 of the design of its first full‐scale facility based on testing to be undertaken at the R&D Facility. The Company expects to list the Fort Saskatchewan Property for sale in the near future. The anticipated sale is expected to reduce interest costs, minimize corporate risk, and provide capital for ongoing operations, which are in line with corporate goals.
Cielo will host a conference call on March 15, 2023 at 10:00 AM MST (12:00 PM EST) during which Cielo's CEO, Ryan Jackson, CFO, Jasdeep K. Dhaliwal and EVP Operations, Ryan Carruthers, will discuss Cielo's fiscal Q3 2023 financial results, followed by a question‐and‐answer session.
There are 2 options for calling into the conference:
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Date : March 15, 2023 Time: 10:00 a.m. MT / 12:00 p.m. ET
Dial In : North America (toll‐free): 1‐888‐664‐6392
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The conference call replay will be available until March 22, 2023.
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