Cielo Waste Solutions Corp. announced a non-brokered private placement of 5,000 unsecured convertible debenture units at a price of CAD 1,000 per Convertible Debenture Unit for targeted gross proceeds of up to CAD 5,000,000 on February 22, 2024. Each convertible debenture unit will be comprised of one unsecured convertible debenture in the principal amount of CAD 1,000.00 convertible into common shares of the company and 2,500 detachable share purchase exercisable into common shares.

The minimum subscription amount will be CAD 20,000. The principal amount may be converted, for no additional consideration, into conversion shares at the option of the holder of a convertible debenture at any time after the issue date at a conversion price of CAD 0.40 per conversion share. Each warrant will entitle the holder thereof to purchase one warrant share at a price of CAD 0.70 per warrant share for a period of 24 months from the issue date.

The company intends to close the private placement in one or more tranches throughout February and early March. Completion of the private placement is subject to the receipt of all required regulatory approvals, as applicable, including the approval of the Exchange. The Debentures and Warrants, as well as Conversion Shares and Warrant Shares, will be subject to a statutory hold period expiring on the date that is four months and one day after the corresponding Issue Date.