In Canada, Cielo Waste Solutions Corp. announced the closing of C$787,000 in gross proceeds in the second tranche of its previously announced private placement of convertible debenture units, initially announced on May 7, 2019.
Cielo announced on May 7, 2019 a private placement offering of a targeted minimum of C$1,000,000 in convertible debentures units. Each unit consists of one C$10,000 unsecured convertible debenture and 5,000 share purchase warrants.
The Debentures bear interest at a simple rate of 15% per annum, the initial two years of interest to be prepaid on the date of issuance of the Debentures by the issuance of common shares at a price of C$0.10 per Prepaid Interest Share. The principal of the Debentures together with all accrued interest exceeding the Prepaid Interest will be repaid 48 months from the Issue Date unless repaid earlier by Cielo without penalty or converted by the holder(s) thereof any time after four months and a day following the Issue Date at a price of C$0.06 for the Principal and C$0.10 for the Interest Balance.
Each Warrant is exercisable for a term of 48 months from the Issue Date at an exercise price of C$0.25 per share, subject to acceleration in the event that the common shares of Cielo listed on a recognized stock exchange trade at C$0.50 or higher for at least five consecutive trading days, in which event Cielo may provide a notice to holders that the Warrant Term will terminate 30 days from the date of notice.
In conjunction with the previously announced closing of the first tranche of the Offering on May 7th, 2019, a total of C$1,805,000 in gross proceeds has been raised in the First Tranche and the Second Tranche collectively. Net proceeds of the Offering are being used toward the costs of completing the new construction required to be completed to the Company’s refinery in Aldersyde, Alberta, as well as for general working capital.
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