Cielo Waste to acquire biodiesel refinery in Alberta
2016-11-16 10:08 ET - News Release
Mr. Don Allan reports
CIELO SIGNS COMMERCIAL PURCHASE AGREEMENT FOR BIO-DIESEL REFINERY
Cielo Waste Solutions Corp. has signed a commercial purchase agreement with XR Resources Inc. to purchase a property located in High River, Alta., on which there is an existing biodiesel refinery.
This multifeedstock processing plant was built in 2009 for an approximate capex cost of $10.2-million and was capable of producing 16 million litres per year of biodiesel. The aggregate purchase price is $2.3-million, consisting of both share and cash consideration. The initial instalment of the purchase price, to be paid by Cielo to XR in consideration for the rights granted in the agreement, will be paid in the form of five million common shares in the capital stock of Cielo at a price of six cents per share, which shares will be held in trust by legal counsel until the transaction is completed. The balance of the purchase price comprises a cash payment of $2-million, to be paid upon satisfaction of the conditions (as defined as follows), along with the release of the shares to XR.
The purchase of the property and the refinery is subject to certain conditions, including a financing condition, Cielo's ability to acquire required permits, and due diligence being completed by Cielo to its satisfaction on or before Feb. 7, 2017. Once the conditions have been fulfilled or waived and the purchase price is paid, Cielo will acquire all right, title and interest in and to the property and the refinery. The anticipated closing date is Feb. 28, 2017.
Don Allan, president of Cielo, stated: "This is a game changer for Cielo. Not only will this fast-track Cielo into commercialization and revenue, but the existing infrastructure that we can use will lower our capex costs by approximately 40 per cent."
About Cielo Waste Solutions
Cielo specializes in environmentally advanced technologies focused on materials recovery, renewable diesel and landfill reduction through responsible diversion practices.