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Montreal, July 22, 2021 – Ecolomondo Environmental (Hawkesbury) Inc., a subsidiary of Ecolomondo Corporation (TSX-V: ECM) (“the Company” or “Ecolomondo”) is pleased to announce that it has concluded a Waiver and Amending agreement (the “W&A Agreement”) to its original loan agreement (“Loan”) with from Export Development Canada (“EDC”).
The original Loan was for an amount of $32.1 million in project financing with EDC, executed on April 3, 2019, to finance the construction of the Company’s first of its kind new turnkey thermal decomposition facility in the Town of Hawkesbury, Ontario (the “Project”) that will process end-of-life tires to produce re-usable resources.
The W&A Agreement updates the original Loan to address amongst other things the consequences brought on by a challenging global COVID-19 pandemic that has and is still creating havoc in the labor markets and global supply chain.
The W&A Agreement encompasses estimated cost overruns of approximately $1 million to the Project of which the Company will contribute $750,000 in additional equity, all payable in three equal instalments of C$250,000, the first already paid on July 14, 2021, while the next two are slated for September and October 2021, respectively
The W&A Agreement also encompasses, firstly, a revised 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 Service Reserve Account (DSRA). These changes will ensure enough funds for the timely completion and further bring additional working capital to fund the operations of the Hawkesbury facility.
“This Agreement only confirms my long standing conviction that EDC could be an excellent contributor to Ecolomondo’s success. During the pandemic, their co operation and commitment were comforting”, says Eliot Sorella, Ecolomondo’s Chairman & CEO.
About the Hawkesbury TDP Turnkey Facility
Commissioning is now expected to begin early September 2021, with limited commercial operations expected to start in October 2021.
The Hawkesbury TDP facility will redefine the way scrap tires will be processed. It will produce renewable products in a much cleaner and safer environment, all at a cheaper cost. It will be comprised of four different processing departments (shredding, thermal processing, recovered carbon black processing, oil fractionation) and, once fully operational, this facility is expected to process a minimum of 14,000 tons of tire waste per year and produce 5,300 tons of recovered 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 of Shareholders by Eliot Sorella, the Company’s President & CEO: “This plant, which is a first of its kind, will demonstrate the full potential of Ecolomondo’s TDP technology. It will be a key component to Ecolomondo’s marketing strategy and the TDP global rollout.”
Please visit the Company’s website at www.ecolomondo.com for updates on the Company’s Hawkesbury facility.
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, EDC equips Canadian companies with the tools they need – the trade knowledge, financing solutions, investments, insurance, and connections – to take on the world with confidence. Underlying all EDC support is a commitment to sustainable and responsible business.
About Ecolomondo Corporation
Ecolomondo is a cleantech Canadian company that is commercializing its waste-to- products technology. The Thermal Decomposition Process (“TDP”) converts hydrocarbon waste into marketable commodity end-products, namely carbon black substitute, oil, gas and steel. Technologies such as Ecolomondo’s are expected to play an important role in resource recovery needed in today’s circular economy.
The Company’s main revenues will come from the sale of TDP turnkey facilities and royalties from their operations. TDP facilities will generate revenues from the sale of end-products, tipping fees and carbon credits. Ecolomondo’s first focus is to market 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 in areas of emissions, process optimization, automation, end-product processing and safety, position Ecolomondo to become an industry leader in the resource recovery of hydrocarbon waste.
Impact of the COVID-19 Pandemic
The world economy is still being heavily impacted by the crisis created by the COVID-19 (coronavirus) pandemic.
The Company has taken and continues to take all necessary precautions needed to mitigate the continued negative impact brought about by a global pandemic. The Company advises that the pandemic has been responsible for delays and increases to project overall costs. It advises that it could be further negatively impacted if the coronavirus remains uncontrolled and the current situation persists and/or resurges. As a result, it is impossible to determine with accuracy further disruptions and the consequences that they may bring to the project schedule and overall cost.
Cautionary Note Regarding Forward Looking Statements
The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Ecolomondo believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Ecolomondo disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
For further information please contact:
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.