Cielo Waste Solutions to Transform Debt into New Securities
CALGARY, Alberta – Cielo Waste Solutions Corp. (TSXV:CMC; OTC PINK:CWSFF) has made a significant announcement regarding the settlement of an aggregate debt amount totaling $1,797,195 through the issuance of new securities, pending approval from the TSX Venture Exchange.
Overview of Debt Transactions
The company recently disclosed that it has established agreements with several arm's length creditors to undertake shares for debt transactions. Unfortunately, the prior proposed transactions that were initially announced did not finalize as planned. Nevertheless, Cielo remains committed to transitioning these obligations into securities for the creditors while ensuring reasonable and commercially viable terms are upheld.
Details on Issued Units
As part of its debt settlement strategy, Cielo plans to issue a total of 35,943,847 units, known collectively as Repayment Units, priced at $0.05 each. This issuance will account for approximately $1,671,656.67 of the total aggregate debt. Each Repayment Unit comprises one common share and a warrant that allows the holder to purchase one additional share at a price of $0.15 within a two-year period.
Insider Transactions
Furthermore, Cielo intends to address the outstanding balance of $125,535.79, which is tied to an insider of the company. This portion of the debt will be settled through the issuance of 2,510,715 common shares, priced at $0.05 each. Notably, no warrants will be granted in this insider transaction.
Regulatory Compliance
The insider transaction qualifies as a related party transaction according to Multilateral Instrument 61-101, safeguarding minority shareholder interests. Cielo will employ exemptions from the typical valuation and shareholder approval requirements since the fair market value does not exceed 25% of the company's market capitalization.
Looking Ahead
The issuance of the Repayment Securities is contingent upon receiving approval from the TSX Venture Exchange. Once authorized, these securities will be subject to a hold period of four months, ensuring compliance with regulatory standards.
Commitment to Sustainability
Cielo Waste Solutions is dedicated to converting waste materials into high-value products and maintaining a commitment to sustainable practices. The company is actively engaged in addressing global waste issues, contributing to a circular economy while aiming to reduce carbon emissions. By leveraging environmentally friendly technologies, Cielo seeks to lead the way in the wood by-product-to-fuels industry.
Company Vision
The mission of Cielo is not just about waste management; it's about creating solutions that benefit both the environment and shareholders. This approach ensures that the company remains resilient and adaptive in a rapidly evolving market, emphasizing innovation and responsible management of resources.
Final Thoughts
As Cielo moves forward with these important debt settlement transactions, it reflects the company's proactive stance in financial management and commitment to sustainable practices. Stakeholders are encouraged to stay informed as developments unfold in this promising endeavor.
Frequently Asked Questions
What is the purpose of Cielo's new securities issuance?
The issuance aims to settle an aggregate debt amount of $1,797,195 through the issuance of new securities in exchange for debt obligations.
Who are the creditors involved in this transaction?
The company has engaged with several arm's length creditors to negotiate and complete the shares for debt transactions.
What are Repayment Units?
Repayment Units are units issued by Cielo, including one common share and one warrant, allowing the purchase of additional shares at a specified price.
What is the significance of the insider transaction?
The insider transaction is a related party event, requiring compliance with regulations designed to protect minority shareholders.
How does Cielo contribute to sustainability?
Cielo focuses on transforming waste into high-value products, enhancing environmental sustainability, and promoting a circular economy.
