ECM:CC - Ecolomondo Provides Corporate Update
(TheNewswire)
Montreal, QC – TheNewswire- October 3, 2022 -- Ecolomondo Corporation (TSXV:ECM) (OTC:ECLMF) (the “ Company ” or“ Ecolomondo ”), a cleantech company specializing in the commercialization of its Thermal Decomposition Process(“ TDP ”) proprietary recycling technology and the building andoperating of turnkey TDP facilities globally, today provides a corporate update.
Hawkesbury TDP Facility
As of June 30, 2022, the Company invested approximately$42 million in the construction of a 2-reactor TDP facility inHawkesbury, Ontario, that is expected to process 14,000 tons of scraptires per year to produce 5,300 tons of recovered carbon black, 42,700barrels of oil, 1,800 tons of steel, 1,600 tons of process gas and 850tons of fiber. Revenue streams of the Hawkesbury facility areprojected to be approximately C$15 million per year and will come fromthe sale of the recovered end-products, more precisely carbon black,oil and steel.
The Company is pleased to report that the installationand commissioning of shredding, thermal and recovered carbon blackproduction lines at the Hawkesbury TDP facility have been completedand should soon begin production. The Company is now waiting on lastcertifications of equipment, which the Company expects to receivewithin the next several weeks.
On August 25, 2022, the Company signed a Third AmendingAgreement (the “ AmendingAgreement ”) to the loan agreement(“ Loan ”) with Export Development Canada (“ EDC ”). The AmendingAgreement allows the deferral of interest and capital payments thatwere to become due August 31 and November 30, 2022, on the conditionthat the Company injects $500,000 in capital in its Hawkesburysubsidiary before the end of August 2022. This condition was satisfiedon August 29, 2022. The Amending Agreement also allows for thedeferral of interest and capital payments that were to become due onFebruary 28, 2023, and a further capital payment to become due May 31,2023, on the condition that the Company agrees to inject $2,000,000 incapital before December 31, 2022, into its Hawkesbury subsidiary.Deferred amounts will be added to the balloon payment due at thematurity of the Loan but will be repaid in priority to dividenddistributions.
Shamrock TDP Facility
The Company is working on its next commercial project,a 6-reactor TDP facility in Shamrock, Texas, which is expected to be 3times the size and capacity of the Hawkesbury facility.
The Company has already purchased the land, and withthe strong support of the local Shamrock Economic DevelopmentCorporation, infrastructure works, budgeted at US$2.6 million for gas,water and sewage, have recently begun.
The total budgeted cost of the Shamrock project isapproximately US$93 million. The Company has engaged the services of aleading U.S. Investment Bank to advise on the financing, which isprojected to be approximately US$73 million. It is anticipated thatthe financing to close in the second quarter of 2023, with groundbreaking to begin soon thereafter.
Non-Brokered Private Placement
The Company also announced that it has filed a requestwith the proper authorities that would allow the Company to sell up to10,000,000 units in a non-brokered private placement at $0.50 perunit. Once approval is received, the Company expects to advisestakeholders accordingly and then proceed with the preparation of thenecessary subscription agreements.
The Company plans to allocate the gross proceeds of thePrivate Placement to general working capital purposes and to helpaccelerate North American expansion plans. Closing of the PrivatePlacement is subject to the approval of the Exchange.
About Ecolomondo Corporation
Ecolomondo Corporation is a Canadian cleantech company headquarteredin Québec, Canada with an over 25-year history focused onwaste-to-resources technology development and deployment. Ecolomondohas developed the Thermal Decomposition Process (“TDP”), whichrecovers high-value circular commodities from end-of-life tires,including recovered carbon black (“rCB”), oil and steel. TDPlowers carbon emissions by up to 90% compared to the production ofvirgin carbon black. Ecolomondo has adopted a triple bottom lineapproach to business focused on people, planet and profit. Ecolomondotrades on the TSX Venture Exchange under the symbol (TSXV:ECM)(OTC:ECLMF). To learn more, visit www.ecolomondo.com
Ecolomondo Corporation Contact
Eliot Sorella
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
esorella@ecolomondocorp.com
www.ecolomondo.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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