- Cielo Waste Solutions Corp. (CMC) has signed an agreement with First Choice Financial Incorporated and KV Capital Inc. to repay $2 million of a mortgage loan
- The loan currently has an outstanding balance of $6.5 million
- Cielo will issue a total of 26.9 million company common shares for the payment
- It will be required to begin making additional monthly interest payments in September
- Cielo Waste Solutions Corp. (CMC) is unchanged trading at $0.08 per share as of 3:28 p.m. ET
Cielo Waste Solutions Corp. (CMC) has signed an agreement with First Choice Financial Incorporated and KV Capital Inc. to repay $2 million of a mortgage loan by issuing shares.
Cielo stated it has agreed to repay the portion and is secured by its property in Fort Saskatchewan, Alberta. The loan was announced nearly one year ago and has an outstanding balance of $6.5 million following an early repayment completed at the start of this year.
Cielo will issue 21.4 million of its common shares for $0.07 per share and another 5.5 million common shares at a price of $0.09 apiece for an aggregate issuance of 26.9 million common shares.
According to the company, the terms of the loan had a 12-month interest reserve but will be depleted in this month as Cielo will be required to begin making additional monthly interest payments in September. In addition to the reduction of Cielo’s debt generally, the shares for debt transaction will allow for a reduction of these interest payments.
Additionally, 12 million non-transferable bonus warrants had been issued in August 2021 as an inducement for the loan. In connection with the first partial repayment, 5.5 million bonus warrants had their term reduced and have now expired. Another 2.0 million bonus warrants will have their term reduced 90 days following the completion of the transaction.
Cielo Waste Solutions Corp. (CMC) is unchanged trading at $0.08 per share as of 3:28 p.m. ET.