ECLMF - Ecolomondo Concludes Final Documentation to the Amending Agreement with Export Development Canada (EDC)
(TheNewswire)
Montreal, QC – TheNewswire- June 4, 2024 -- Ecolomondo Corporation (TSXV: ECM) (OTC: ECLMF) (the “ Company ” or“ Ecolomondo ”), a cleantech company specializing in thecommercialization of its Thermal Decomposition Process(“ TDP ”) proprietary recycling technology and the globaldeployment of TDP turnkey facilities, hasconcluded the final documentation to the previously announcedConditional Amending Agreement to its Loan agreement (“ Loan ”) with ExportDevelopment Canada (“ EDC ”).
The original Loan was for an amount of $32.1 million inproject financing with EDC, and executed on April 3, 2019, to financethe construction of the Company’s first of its kind new turnkeythermal decomposition facility in the Town of Hawkesbury, Ontario (the“ Hawkesburyfacility ”) to process end-of-life tires toproduce sustainable resources.
On January 2, 2024, the Company announced that itreached an agreement to restructure its originalLoan agreement with EDC. In the RestructuredLoan Agreement announced on January 2, 2024, the maturity date of theloan was changed to May 2029 and the interest rate was capped at 8.5%per annum. Capital and interest payments were to begin in May 2024with quarterly installments, capital payments to be calculated basedon a 25-year amortization. The Restructured Loan Agreement also calledfor accumulated interest up to May 2024 to be capitalized and thetotal Loan would be increased to $37,903,920. Interest on thecapitalized interest up to May 2029, the new maturity date, would bewaived if both the Loan and the accumulated interest were to be repaidby then.
The new Amending Agreement executed on May 31, 2024 to the EDC Loan ,previously announced on January 2, 2024, allowsfor the postponement of interest payments due in May, August, November2024 and February 2025. It calls for these postponed interest paymentsto be paid in kind and capitalized to the Loan. Capital payments duefor the same periods will be added to the amount of the Loan to becomedue on the final maturity date in May 2029.
This Amending Agreement is animportant step that will help the Company successfully complete theramp-up of the Hawkesbury TDP facility. Oncethis milestone is achieved, the Hawkesbury plant is expected to becomethe example of an efficient and fully operational TDP turnkeyfacility. The experience garnered in the building and commissioning ofthe Hawkesbury plant is invaluable and should lead to improvedefficiency in the building of new TDP turnkey facilities in thefuture.
“This Amending Agreement and therecently announced $3 million Loan confirm the continued support ofEDC for Ecolomondo and its innovative TDP thermaltechnology” , says Gary Economo, Ecolomondo’sCEO.
About Ecolomondo Corporation
Ecolomondo Corporation is a Canadian cleantech company that prides itself after its proprietary ThermalDecomposition technology TDP which is headquartered in Québec, Canada . It has a 25-year history and during this time has been focused on its development of itstechnology and the deployment of TDP turnkeyfacilities . TDP recovers high value re-usable commodities from scrap tire waste, notably rCB, oil , syngas, fiber and steel. Ecolomondo expects to be a leading player in the cleantechspace and be an active contributor to the global circular economy. Ecolomondo trades in Canada on the TSX VentureExchange under the symbol (TSXV:ECM) and in theUnited States under the symbol (OTCQB:ECLMF). To learn more, visit www.ecolomondo.com
About the Hawkesbury Plant – A2-Reactor TDP Facility
The Hawkesbury facility building is 46,200 sq.ft andhas an impressive indoor clearance of 28 feet. It is state-of-the-artand houses 4 main production departments, tire shredding, thermaldecomposition, recycled carbon black refining and oil fractionation.Once fully operational, this facility is expected to process 1.3M ofscrap tires per year and produce 8.7M lbs of recovered carbon black,34,608 barrels of oil, 2.9M lbs of steel, and 2.6M lbs of processgas.
About the Shamrock Project – A6-Reactor TDP Facility
Processing capabilities for the Shamrock facility isprojected at 5.5M per year of end-of-life tires, yieldingapproximately 35.1M lbs of recovered carbon black, 128,100 barrels ofoil, 11.9M lbs of steel, and 10.6M lbs of syngas; roughly three timesthe size of the Company’s Hawkesbury (Ontario) plant output.Facility construction is expected to begin by the third quarter of 202 4 with completion expected by the endof the fourth quarter of2025. Projected cost to build is approximately US $93 million.
Our Mission , Vision & Strategy
Ecolomondo’s mission is to be a contributingparticipant in a dynamic Circular Economy and to increase shareholdervalue by producing and supplying large quantities of recoveredresources to be re-used in the manufacture of new products.
Ecolomondo’s vision is to be a leading producer andreseller of recovered resources by building and operating TDPfacilities, strategically located in industrialized countries, closeto feedstock, labor and offtake clients.
Our strategy is to become a major global builder andoperator of TDP turnkey facilities, for now specializing in theprocessing of ELTs. Our intent is to expand aggressively in NorthAmerica and Europe. Our experience and modular technology should helpus get there faster and better. We plan to keep performing ongoingresearch and development to ensure that Ecolomondo remainstechnologically advanced.
ISCC Certification
A confirmation of the Company’s successful processlies in the recent International Sustainability and CarbonCertification (“ISCC”) for its Hawkesbury TDP facility, anotherstep forward that should help improve demand for TDP. ISCC is a GlobalSustainability Certification System and offers chain-of-custodycertification systems to ensure traceability and feedstock identity,which can add commercial value to the Company’s end-products as theyremain traceable in the supply chain.
ISO Certification
The Company has obtained ISO 9001:2015, ISO 14001:2015& ISO 45001:2018 certification of its Integrated Management System(IMS), which acknowledges Ecolomondo’s commitment for quality,environmental impact and health and safety at work.
Environmental, Social &Governance (ESG)
On the social aspect the Company plans to measureglobal health and safety, injury rate and gender diversity, andfinally in the corporate governance aspect, the Company is measuringethics and anticorruption, ESG reporting and board independence.
About TDP
The TDP process is technically proven and moreadvanced than most other pyrolysis technologies.Over the years, our Technological teams were able to overcome alluncertainties that plagued most competitors especially inthe s e areas:pre-filtration, reactor cooling, reactor rotation, water recycling, processing of rCB,(hydrocarbon removal), mass monitoring, heat curve development,humidity and water removal, safety testing, system automation,emissions control and monitoring .
TDP is Environmentally Friendly –CO 2 Reduction
By producing rCB, TDP reduces GHG emissions by 90%versus the production o fvirgin carbon black. The production of rCB at the Hawkesbury andShamrock facilities are expected to reduce CO2 emissions by 22,400 and 67,200 tons per year,respectively.
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Ecolomondo Corporation Contact
Gary Economo
Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
geconomo@ecolomondocorp.com
Cautionary NoteRegarding Forward Looking 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 lookingstatements. These statements are based upon assumptions that aresubject to significant risks and uncertainties. Because of these risksand uncertainties and as a result of a variety of factors, the actualresults, expectations, achievements or performance may differmaterially from those anticipated and indicated by theseforward-looking statements. Although Ecolomondo believes that theexpectations reflected in forward looking statements are reasonable,it can give no assurance that the expectations of any forward-lookingstatements will prove to be correct. Except as required by law,Ecolomondo disclaims any intention and assumes no obligation to updateor revise any forward-looking statements to reflect actual results,whether as a result of new information, future events, changes inassumptions, changes in factors affecting such forward-lookingstatements or otherwise.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
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