"We believe the closing of the asset purchase transaction with Expander Energy during Q3 2024 represents a pivotal moment on our journey, positioning Cielo with an economically sustainable and market-ready solution. Cielo has a clear line of sight to produce our net-zero carbon intensity Bio-SynDiesel®,” said
Q3 2024 HIGHLIGHTS
During the quarter ended
- Closed the asset purchase transaction with
Expander Energy Inc. (“Expander”) onNovember 9, 2023 , gaining an exclusive license inCanada for all feedstock and in theU.S. for treated wood waste to deploy Expander’s innovative Enhanced Biomass to Liquids (EBTL™) andBiomass Gas to Liquids (BGTL™) technologies (the “Licensed Technologies”), which management believes will allow Cielo to accelerate its timeline to revenue. - As a result of the transaction with Expander, secured several key agreements and approvals designed to accelerate the Company’s path to commercialization of Bio-SynDiesel® at the Carseland facility (the “Carseland Project”):
- Secured a long-term contract that provides Cielo with a cost-effective and continuous supply of the requisite biomass feedstock for the
Carseland Project from an established local biomass supply company,ECCO Recycling & Energy Corporation ; - Signed a long-term syngas processing agreement with
Rocky Mountain Clean Fuels Inc. (“RMCFI”) that will see Bio-Syngas produced at theCarseland Project converted into 8.2 million litres per year of renewable Bio-SynDiesel® fuel at the existing, operational and adjacent synthetic fuel facility; and - Received approval for a long-term lease on a parcel of land totaling 25 acres, situated immediately adjacent to the existing and operational RMCFI facility at Carseland, which enables Cielo to leverage existing infrastructure and operational capabilities to accelerate commercial production of Bio-SynDiesel® fuel.
- Secured a long-term contract that provides Cielo with a cost-effective and continuous supply of the requisite biomass feedstock for the
- Completed a share consolidation on the basis of 15:1, reducing outstanding shares to 113,302,703 from 1,699,540,548 effective
January 29, 2024 ; - Raised
$670,000 through a non-brokered private placement of flow-through shares inDecember 2023 , with proceeds directed to advance theCarseland Project ; - Took critical steps to further progress the
Carseland Project and the proposed project inDunmore, Alberta (the “Dunmore Project”, together with theCarseland Project , collectively the “Projects”) by allocating approximately$762,000 in capital expenditures to the Projects; and - Repaid a
$60,000 Canadian Emergency Business Account (CEBA) loan.
Subsequent to the end of the quarter, Cielo continued to build on the momentum realized in Q3 2024 with the following achievements:
- Announced a private placement of convertible debenture units intending to raise up to
$5.0 million over several tranches for the ongoing advancement of Cielo’s renewable fuel projects, closing the first tranche for gross proceeds of$560,000 , primarily to be used for the advancement of theCarseland Project ; and - Confirmed its final credit facility draw, signaling an important shift in Cielo’s go-forward financing strategy to use convertible instruments versus traditional debt to better align with its current stage of development.
OUTLOOK
Through the final quarter of Cielo’s fiscal 2024 and into fiscal 2025, the Company is targeting the following milestones:
- Confirm final investment decisions for both the
Carseland Project and theDunmore Project , and continue to work towards financing the completion of construction for these two commercial facilities; - Ongoing and proactive capital markets engagement activities, including participating in various industry and investment conferences, undertaking profile-building activities with both investors and media, as well as continuing to actively position Cielo as an upcoming leader in the waste-to-fuels industry; and
- Utilization of the Company’s R&D facility located in Aldersyde,
Alberta , subject to receipt of approval from Alberta Environment and Projected Areas, to generate the data required to design and define the economics of a commercial facility using Cielo’s existing TCD technology and exploration of the possibility of integrating Cielo’s existing TCD technology with the Licensed Technologies.
Financial Highlights
As at | ||
(000’s of dollars) | ||
Total assets | 59,627 | 29,366 |
Total liabilities | 13,818 | 14,569 |
Total non-current liabilities | 2,434 | 61 |
Working capital deficiency | (9,694) | (12,487) |
Periods ended | Three months | Nine months | ||
(000’s of dollars, except per share amounts) | 2024 | 2023 | 2024 | 2023 |
Financing costs | 72 | 620 | 709 | 1,838 |
General and administrative | 546 | 1,137 | 2,111 | 3,021 |
Research and development | 167 | 442 | 827 | 1,406 |
Share based compensation | (113) | 143 | 205 | 270 |
Impairment of assets and assets held for sale | - | - | 3,826 | 25,366 |
Net loss per share – basic & diluted | (0.02) | (0.04) | (0.12) | (0.62) |
The Company recorded a net loss of
Cielo’s operating cash flow totaled
For further information please contact:
Cielo Investor Relations
Phone: (403) 348-2972
Email: investors@cielows.com
ABOUT CIELO
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. Forward-looking statements and information are based on plans, expectations and estimates of management at the date the information is provided and are subject to certain factors and assumptions.
Cielo is making forward looking statements, with respect to, but not limited to: timing, location, feedstocks and milestones for the
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.
Source:
2024 GlobeNewswire, Inc., source