ECM:CC - Ecolomondo Releases 2023 Annual Results

(TheNewswire)

Montreal, QC, May 1, 2024 -- Ecolomondo Corporation (TSXV: ECM) (OTCQB: ECLMF) (the “ Company ” or“ Ecolomondo ”), a cleantech company that designs, builds, operates andcommercializes Thermal Decomposition turnkey plants using itsproprietary Thermal Decomposition Process (“ TDP ”) recyclingtechnology, announces that it has released its audited consolidated financialstatements and notes thereto and its related management discussion andanalysis (“ MDA ”) as of and for the year ended December 31, 2023 (the“ Annual FinancialStatements ”). The documents are available onSEDAR at www.sedar.com

During the fiscal year ended December 31, 2023, theCompany continued to make important strides at its state-of-the artHawkesbury TDP turnkey facility. The Company continued to promote itsTDP proprietary technology to strategic partners while it wasstrategizing to select potential future sites and investors to buildTDP turnkey facilities, all as part of its global expansionstrategy.

During the fiscal year ended December 31, 2023, theCompany focused on the ramp-up of its Hawkesbury TDP facility:

• It performed the simultaneous production cycles atoptimal payloads using both of reactors at its Hawkesbury TDPfacility;

• It improved efficiency of the shredding line andthermal processing TDP.

In late 2023, as the Company began to ramp-up itsproduction, it became aware that its recovered carbon black millingmachine did not have the capacity of producing the required throughputof 1,600 lbs per hour of recovered carbon black and to produce therequired particle size of 15 microns. The Company immediatelyidentified the root cause of the problems and decided on the necessarycorrective measures. While these corrective measures will cause somedelay to Hawkesbury’s full commercialization, management believesthat all should be completed by the third quarter of 2024. During thisperiod, the Company plans to keep shredding scrap tires, performingTDP batches and selling the steel and the pyrolysis oil. The Companyplans to ship the recovered carbon black produced to a tolling companyfor final processing. Once returned, the Company expects to ship theprocessed recovered carbon black to its customers.

Highlights of the Annual Financial Statementsare:

• The company had revenues of $149,281 compared to$81,632 for the fiscal year ended December 31, 2022. During theperiod, the Company sold $196,727 of end-products produced at theCompany’s Hawkesbury TDP facility, compared to nil for the fiscalyear ended December 31, 2022;

• As of December 31, 2023, capital expenditures for theHawkesbury facility totaled $44,554,339 and the term loan with EDCreached $37,903,920. The Company contributed equity of $11,828,295 tofulfill the covenants of its loan and amending agreements;

• A write-down of $3,392,636 of the Hawkesbury assets isreflected in the consolidated financial statements of the Company forthe year ended December 31, 2023, to reflect the removal of equipmentand related costs that have been replaced or discarded;

• The Restructured Loan signed with EDC on December 22,2023, allowed for the postponement of principal and interest paymentsto May 2024 with interest capped at 8.5% per year. The agreement callsfor the Restructured Loan to be repaid in quarterly settlements ofprincipal and interests starting in May 2024 based on a 25-yearamortization, and the final balance and all capitalized interest to berepaid when the Loan matures in May 2029;

• As at December 31, 2023, the Company had an accumulateddeficit of $26,743,082 ($22,018,374 as at December 31, 2022) as wellas a working capital deficit of $9,746,977 and an adjusted workingcapital deficit of $4,107,925 (after taking into consideration theShare-For-Debt Agreement of $3,498,853 and the cash injection of $1.5million indicated in the Subsequent Events section of the Company’saudited consolidated financial statements for the year ended December31, 2023.

The Company projects to use a further $4,500,000 duringthe next fiscal year, mostly for working capital, commissioning,ramp-up and purchase of equipment at its Hawkesbury facility, of whichas mentioned above $1 million has already been injected by theCompany’s controlling shareholder. The Company is expecting to raisethe remaining cash requirements of $3,500,000 for the balance of 2024by securing a bridge loan of $3,000,000, with the balance of $500,000coming from a company controlled by its controlling shareholder. TheCompany further advised that on March 27, 2024, it benefited fromanother advance of $500,000 from a company under commoncontrol.

For more details on these Annual Financial Statementsof Ecolomondo, visit www.sedar.com or www.ecolomondo.com

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 isexpected to process 1.3M of scrap tires per year and produce 8.7M lbsof recovered carbon black, 34,608 barrels of oil, 2.9M lbs of steel,and 2.6M lbs of process gas.

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

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.

Please follow Ecolomondoon Twitter, Facebook, LinkedIn, Instagram and YouTube.

Facebook:

LinkedIn:

Instagram: https://www.instagram.com/ecolomondoecm/

YouTube:

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.

Copyright (c) 2024 TheNewswire - All rights reserved.