Cielo Announces Private Placement of Convertible Debenture Units for up to $5.0 Million to Advance Renewable Fuel Projects, Confirms Final Credit Facility Draw and Magazine Feature

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CALGARY, Alberta, Feb. 22, 2024 (GLOBE NEWSWIRE) -- Cielo Waste Solutions Corp. (TSXV:CMC; OTCQB:CWSFF) (“Cielo” or the “Company”), a renewable fuel company leveraging market ready licensed technology to produce low carbon fuel from wood by-products, is pleased to announce that it proposes to undertake a non-brokered private placement offering of unsecured convertible debenture units of the Company (collectively, the "Convertible Debenture Units") at a price of $1,000 per Convertible Debenture Unit for targeted gross proceeds of up to $5,000,000 (the "Private Placement").

The Private Placement and a concurrent final draw from Cielo’s existing secured credit facility, as described below, represent an important shift in the Company’s financing strategy to utilize convertible instruments versus traditional forms of debt. This financing strategy is expected to improve alignment between the Company’s capital structure and the advanced nature and status of its renewable fuel projects and is supported by its current secured lender, who has indicated its intention to participate in the Private Placement.

In addition, Cielo is also pleased to share that the Company has been featured in the Winter 2024 edition of Canadian Biomass Magazine, with further details provided below.

“By focusing on the structure of our capital stack for project development, and incorporating convertible instruments, we believe Cielo is afforded an improved ability to manage dilution and lower the cost of capital, all of which are critical as we accelerate to revenue,” said Ryan Jackson, CEO of Cielo. “Following our recent share consolidation, the Company has evolved its strategy to leveraging debt financing for revenue producing projects.”

Convertible Debenture Unit Offering

Each Convertible Debenture Unit will be comprised of: (i) one unsecured convertible debenture (each, a "Convertible Debenture") in the principal amount of $1,000.00 (the "Principal Amount") convertible into common shares of the Company (the "Common Shares" and each such Common Share, a "Conversion Share"); and (ii) 2,500 detachable share purchase warrants (each, a "Warrant") exercisable into Common Shares (each such Common Share, a “Warrant Share”). The minimum subscription amount will be C $20,000.