ECLMF - Ecolomondo Concludes an Amending Agreement with Export Development Canada (EDC)
(TheNewswire)
Montreal – TheNewswire - July 22, 2021 - Ecolomondo Environmental(Hawkesbury) Inc. , a subsidiary of Ecolomondo Corporation ( TSXV:ECM ) (“ the Company” or “Ecolomondo ”) is pleased to announce that it has concluded a Waiverand Amending agreement (the “ W&A Agreement ”) to its original loanagreement (“ Loan ”) with from Export Development Canada (“ EDC ”).
The original Loan was for an amount of $32.1 million inproject financing with EDC, executed on April 3, 2019, to finance theconstruction of the Company’s first of its kind new turnkey thermaldecomposition facility in the Town of Hawkesbury, Ontario (the“ Project ”) that will process end-of-life tires to produce re-usableresources.
The W&A Agreement updates the original Loan toaddress amongst other things the consequences brought on by achallenging global COVID-19 pandemic that has and is still creatinghavoc in the labor markets and global supply chain.
The W&A Agreement encompasses estimated costoverruns of approximately $1 million to the Project of which theCompany will contribute $750,000 in additional equity, all payable inthree equal instalments of C$250,000, the first already paid on July14, 2021, while the next two are slated for September and October2021, respectively.
The W&A Agreement also encompasses, firstly, arevised Commercial Operation Date now scheduled for December 2021,secondly, postponement of one year’s Principal Repayment and,thirdly, the softening of loan covenants attached to the Debt ServiceReserve Account (DSRA). These changes will ensure enough funds for thetimely completion and further bring additional working capital to fundthe operations of the Hawkesbury facility.
“This Agreement only confirms mylong standing conviction that EDC could be an excellent contributor toEcolomondo’s success. During the pandemic, their co-operation andcommitment were comforting” , says EliotSorella, Ecolomondo’s Chairman & CEO.
About the Hawkesbury TDP TurnkeyFacility
Commissioning is now expected to begin early September2021, with limited commercial operations expected to start in October2021.
The Hawkesbury TDP facility will redefine the way scraptires will be processed. It will produce renewable products in a muchcleaner and safer environment, all at a cheaper cost. It will becomprised of four different processing departments (shredding, thermalprocessing, recovered carbon black processing, oil fractionation) and,once fully operational, this facility is expected to process a minimumof 14,000 tons of tire waste per year and produce 5,300 tons ofrecovered carbon black, 42,700 barrels of oil, 1,800 tons of steel,1,600 tons of process gas and 850 tons of fiber.
As mentioned during the 2021 Annual General Meeting ofShareholders by Eliot Sorella, the Company’s President & CEO:“This plant, which is a first of its kind, will demonstrate the fullpotential of Ecolomondo’s TDP technology. It will be a key componentto Ecolomondo’s marketing strategy and the TDP global rollout.”
Please visit the Company’s website at www.ecolomondo.com for updates onthe Company’s Hawkesbury facility.
About EDC
Export Development Canada (EDC) is a financial Crowncorporation dedicated to helping Canadian companies of all sizessucceed on the world stage. As international risk experts, EDC equipsCanadian companies with the tools they need – the trade knowledge,financing solutions, investments, insurance, and connections – totake on the world with confidence. Underlying all EDC support is acommitment to sustainable and responsible business.
About Ecolomondo Corporation
Ecolomondo is a cleantech Canadian company that iscommercializing its waste-to-products technology. The ThermalDecomposition Process (“ TDP ”) converts hydrocarbon waste intomarketable commodity end-products, namely carbon black substitute,oil, gas and steel. Technologies such as Ecolomondo’s are expectedto play an important role in resource recovery needed in today’scircular economy.
The Company’s main revenues will come from the saleof TDP turnkey facilities and royalties from their operations. TDPfacilities will generate revenues from the sale of end-products,tipping fees and carbon credits. Ecolomondo’s first focus is tomarket TDP turnkey facilities that use scrap tires as a feedstock,because scrap tires yield end-products with a higher commercial value,especially the recycled carbon black.
Management believes that technological breakthroughs inareas of emissions, process optimization, automation, end-productprocessing and safety, position Ecolomondo to become an industryleader in the resource recovery of hydrocarbon waste.
Impact of the COVID-19Pandemic
The world economy is still being heavily impacted bythe crisis created by the COVID-19 (coronavirus) pandemic.
The Company has taken and continues to take allnecessary precautions needed to mitigate the continued negative impactbrought about by a global pandemic. The Company advises that thepandemic has been responsible for delays and increases to projectoverall costs. It advises that it could be further negatively impactedif the coronavirus remains uncontrolled and the current situationpersists and/or resurges. As a result, it is impossible to determinewith accuracy further disruptions and the consequences that they maybring to the project schedule and overall cost.
Cautionary Note Regarding ForwardLooking Statements
The information in this news release includes certaininformation and statements about management's view of future events,expectations, plans and prospects that constitute forward looking statements. These statements are based uponassumptions that are subject to significant risks and uncertainties.Because of these risks and uncertainties and as a result of a varietyof factors, the actual results, expectations, achievements orperformance may differ materially from those anticipated and indicatedby these forward looking statements. Although Ecolomondo believes thatthe expectations reflected in forward looking statements arereasonable, it can give no assurances that the expectations of anyforward looking statements will prove to be correct. Except asrequired by law, Ecolomondo disclaims any intention and assumes noobligation to update or revise any forward looking statements toreflect actual results, whether as a result of new information, futureevents, changes in assumptions, changes in factors affecting suchforward looking statements or otherwise.
For further information pleasecontact:
Elio Sorella,
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
www.ecolomondo.com
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