Cielo Waste Solutions Reports 2023 Annual Financial Results
CALGARY, Alberta, June 21, 2023 (GLOBE NEWSWIRE) -- Cielo Waste Solutions Corp. (TSXV: CMC; OTCQB: CWSFF) (“Cielo” or the “Company”), a waste-to-fuel company, today reports financial results for the three months and year ended April 30, 2023. All amounts in this news release are in Canadian dollars unless otherwise indicated.
FINANCIAL HIGHLIGHTS
The Company continued to focus during and subsequent to the year ended April 30, 2023 on progressing toward the commercialization of its waste‐to‐fuel technology while strategically managing costs.
- General and administrative costs decreased $3.2 million (12‐month period) and decreased $1.1 million (3‐month period) from their comparative periods due to reduced spending.
- Research and development costs decreased $3.4 million (12-month period) and decreased $0.2 million during the quarter from the comparative period, primarily due to Cielo’s focus on design and fabrication of the R&D Facility.
- During the quarter ended April 30, 2023, Cielo had negative operating cash flow, consistent with prior periods and as expected in a pre‐revenue business.
- Financing costs increased approximately $0.3 million for the quarter and $0.9 million for the 12-month period, primarily due to the Company not capitalizing borrowing costs on qualifying assets as the construction in progress ceased at the Company’s prior facility in Aldersyde, Alberta, which was decommissioned in August 2022, offset by lessened interest expense as debt decreased from the comparative period.
- Total assets decreased by $24.2 million as of April 30, 2023, compared to April 30, 2022, mainly due to impairment of $25.6 million related to the decommissioning of the prior facility in Aldersyde, partially offset by the fabrication of the Company’s R&D facility in Aldersyde for $4.2 million and the decrease in cash related to continued research and development activities and general and administrative expenditures.
- Total liabilities decreased by $5.4 million as of April 30, 2023, compared to April 30, 2022, due to the settlement of a mortgage loan through debt for securities conversions of $6.5 million in aggregate and lower spending at the prior facility in Aldersyde due to decommissioning resulting, in a decrease in accounts payable and accrued liabilities of $0.5 million.
- The net loss for the Company for the fourth quarter of 2023 was $4.1 million, and April 30, 2022, the net loss was $2.2 million. The net loss for the Company in the year ended April 30, 2023 was $36.2 million, an increase of $21.7 million from $14.4 million for the year ended April 30, 2022. The increase in net loss is primarily due to the recognition of impairment of $25.6 million, offset by a $5.3 million decrease in general and administrative expenditures, research and development expenditures, and share based compensation.
SELECTED FINANCIAL INFORMATION
| As at (Thousands of dollars) | April 30, 2023 | April 30, 2022 | |
| Total assets | 29,366 | 53,531 | |
| Total liabilities | 14,568 | 19,932 | |
| Total non-current liabilities | 61 | 16,958 | |
| Working capital | (12,488 | ) | 1,164 |
| Periods ended April 30 | Three months ended | Year ended | ||||||
| (Thousands of dollars, except per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||
| Financing costs | 580 | 295 | 2,418 | 1,516 | ||||
| General and administrative | 619 | 1,716 | 3,638 | 6,869 | ||||
| Research and development | 698 | 899 | 2,104 | 5,467 | ||||
| Share based compensation | 194 | 363 | 464 | 1,399 | ||||
| Net loss per share – basic & diluted | (0.00 | ) | (0.00 | ) | (0.04 | ) | (0.02 | ) |
WEBINAR
Cielo’s CEO, Ryan Jackson, CFO, Jasdeep K. Dhaliwal, and EVP, Operations, Ryan Carruthers, will host a live webinar on Thursday, June 22nd, 2023, at 3:00 p.m. ET to discuss the filings and current matters and answer investor questions. We invite all investors and other interested parties to register for the webinar at the link below.
Date: Thursday, June 22, 2023
Time: 3pm ET
Register:
HAVE QUESTIONS? Management will be available to answer your questions following the presentation on the webinar platform. You may submit your question(s) beforehand in the registration form or by email at: .
For further information please contact:
Ryan Jackson, CEO
Phone: (403) 348-2972
Cielo Investor Relations
Email:
ABOUT CIELO
Cielo Waste Solutions Corp. was incorporated under the Business Corporations Act (British Columbia) on February 2, 2011. Cielo is a publicly traded company with its shares listed to trade on the TSX Venture Exchange (“TSXV”) under the symbol “CMC,” on the Frankfurt Exchange (“DAX”) under the symbol “C36”, as well as on the OTC Venture Market (“OTCQB”), under the symbol “CWSFF.” The Company’s strategic intent is to become a leading waste-to-fuel company using economically sustainable technology while minimizing the environmental impact. Cielo has a patented process that can convert waste feedstocks, including organic material and wood derivative waste, to fuel. Having demonstrated its ability to produce diesel and naphtha from waste, Cielo’s business model is to construct additional processing facilities. Cielo’s objective is to generate value by converting waste to fuel, while fueling the sustainable energy transition.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes.
Forward-looking statements are subject to both known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward looking statements. Cielo is making forward looking statements, with respect to, but not limited to the timing of the filing of the Company’s annual audited consolidated financial statements and corresponding management’s discussion and analysis; and the timing, speakers, and agenda for the webinar.
Investors should continue to review and consider information disseminated through news releases and filed by the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV), nor OTCQB nor WKN, have reviewed, and do not accept responsibility for the adequacy or accuracy of, the content of this news release.
