ECM:CC - Ecolomondo Reaches a Conditional Agreement For $3 million Loan With Export Development Canada
(TheNewswire)
Montreal, QC, May 28, 2024 - TheNewswire - 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, hasreached an agreement in principle for a $3 million loan (the“ Loan ”) with Export Development Canada (“ EDC ”).
The original $32.1 million project financing Loan withEDC was to finance the construction of the Company’s first of itskind new turnkey thermal decomposition facility in the Town ofHawkesbury, Ontario (the “Hawkesbury facility” ) that will processend-of-life tires to produce re-usable resources.
This new Loan is in addition and separate to theoriginal Loan of $32.1 million that was executed in April 2019, andrestructured in December 2023 with a restated capital amount of$37,903,920.
The new Loan of $3 million is extended to theCompany’s subsidiary, Ecolomondo Environmental (Hawkesbury) Inc.,owner of the Hawkesbury facility. The purpose for the Loan is to payfor capital expenditures and to fund any working capital needs thatthe Company may require. The additional funds will improve theHawkesbury subsidiary’s cash position and are expected to pay foradditional equipment, to finance the daily operations, to increaseplant efficiency and complete the ramp-up.
“This is great news for theCompany, these additional funds will be used to accelerateEcolomondo’s path to revenue” , says GaryEconomo, the Company’s CEO.
Subject to the execution of final documentation, whichis expected to be completed in the next few weeks, the Loan calls fora 2-year term, with a floating interest rate of prime plus 8%.Interest payments will be capitalized on a monthly basis untilFebruary 2025 and payable thereafter on a monthly basis. Principalwill be repaid by 12 equal installments starting April 2025.
The collateral to the Loan is a first rank securityinterest and /or hypothecof $3 million on all of the borrower’s future and presentpersonal/movable property, and real immovable property backed by apersonal guarantee by Eliot Sorella, the Company’s controllingshareholder and Executive Chairman.
The Loan conditions also call for a $1 million cashinjection from the controlling shareholder starting March 1, 2024. Thecontrolling shareholder will continue to fund the operations of theHawkesbury subsidiary until such time that the EDC Loan is disbursed,at which time he will be entitled to be reimbursed for allexpenditures that exceeded $1 million.
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 Global Sustainability Certification System and offerschain-of-custody certification systems to ensure traceability andfeedstock identity, which can add commercial value to the Company’send-products as they remain 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 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 assurance 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.
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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