Cielo Waste Solutions Sets Stage for Debt Settlement via Shares

Cielo Waste Solutions Moves Forward with Debt Settlement

Cielo Waste Solutions Corp. (TSXV: CMC; OTC PINK: CWSFF) is taking significant steps to manage its financial responsibilities by announcing a share issuance to settle a total debt of $1,622,413.10. This strategic approach, known as the "Shares for Debt Transaction," will involve issuing a considerable number of common shares, specifically 15,451,545 shares, at a price of $0.105 each, pending the necessary approvals from the TSX Venture Exchange.

Details of the Debt Settlement Transaction

The company has reached agreements with various creditors to facilitate the issuance of 14,480,856 shares at $0.105 per share, which will help clear $1,520,490.67 of the overall debt. Furthermore, Cielo has plans to finalize an agreement aligned with these terms with an Insider - someone aligned closely with the company operations.

Insider Transactions and Related Party Engagements

The agreement with this Insider involves settling the remaining $101,922.43 of the Aggregate Debt Amount with the issuance of 970,689 repayment shares, reinforcing their commitment to supporting the company during this pivotal time. According to Canadian regulations under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), this Insider Transaction is recognized as a related party transaction. However, exemptions from certain valuation and approval requirements are applicable in this instance since the transaction is below 25% of the company’s market capitalization.

Awaiting Approval for Share Issuance

The progression of these shares for debt transactions hinges on the approval of the TSX Exchange. Once permissible and finalized, the newly issued Repayment Shares will be subject to a hold period extending four months, aligning with standard practices for share issuance.

Correction on Prior Transactions

Cielo Waste Solutions is also taking the opportunity to correct a previously issued news release regarding earlier shares for debt transactions, which discussed settling debts amounting to $25,184. The prior announcement inaccurately stated the share price as $0.32; the correct figure is $0.31, reflecting Cielo's commitment to transparency.

About Cielo Waste Solutions Corp.

Cielo Waste Solutions is pioneering renewable energy transformation, primarily focusing on converting wood by-products into clean fuels with environmentally sustainable technologies. With exclusive rights in Canada to the patented Enhanced Biomass to Liquids (EBTL™) and Biomass Gas to Liquids (BGTL™) technologies, Cielo is positioned to capitalize on innovative solutions in the energy sector. Their endeavors are bolstered by an exclusive license in the United States for managing creosote and treated wood waste, ensuring an efficient supply chain leveraging abundant materials like railway ties.

The company boasts a robust portfolio with diverse projects facilitated by the expertise of seasoned industry professionals, reinforcing their commitment to reshaping the fuel landscape while offering sustainable financial returns to stakeholders. Investors can find Cielo shares listed under the symbol “CMC” on the TSX Venture Exchange and “CWSFF” on the OTC Pink Market.

Contact Information

Cielo Investor Relations

Ryan Jackson, CEO
Phone: (403) 348-2972
Email: investors@cielows.com

Frequently Asked Questions

What is the purpose of Cielo's Shares for Debt Transactions?

The primary goal of these transactions is to settle outstanding debts by issuing shares, thereby improving the company's financial health.

How many shares will be issued in this transaction?

Cielo plans to issue a total of 15,451,545 common shares as part of the debt settlement process.

What is the share price set for the debt settlement?

The shares will be issued at a price of $0.105 per share.

How does an Insider Transaction affect stakeholders?

This transaction is subject to specific regulations ensuring fairness and protection for minority shareholders, aiming to maintain transparency in related party dealings.

What impact does the corrective announcement have?

By correcting the share price from $0.32 to $0.31 for prior transactions, Cielo demonstrates its commitment to accurate communication and trust with shareholders and the public.

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