Montreal, QC, 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 and operating 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 in Hawkesbury, Ontario, that is expected to process 14,000 tons of scrap tires per year to 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. Revenue streams of the Hawkesbury facility are projected to be approximately C$15 million per year and will come from the sale of the recovered end-products, more precisely carbon black, oil and steel.
The Company is pleased to report that the installation and commissioning of shredding, thermal and recovered carbon black production lines at the Hawkesbury TDP facility have been completed and should soon begin production. The Company is now waiting on last certifications of equipment, which the Company expects to receive within the next several weeks.
On August 25, 2022, the Company signed a Third Amending Agreement (the “Amending Agreement”) to the loan agreement (“Loan”) with Export Development Canada (“EDC”). The Amending Agreement allows the deferral of interest and capital payments that were to become due August 31 and November 30, 2022, on the condition that the Company injects $500,000 in capital in its Hawkesbury subsidiary before the end of August 2022. This condition was satisfied on August 29, 2022. The Amending Agreement also allows for the deferral of interest and capital payments that were to become due on February 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 in capital before December 31, 2022, into its Hawkesbury subsidiary. Deferred amounts will be added to the balloon payment due at the maturity of the Loan but will be repaid in priority to dividend distributions.
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 3 times the size and capacity of the Hawkesbury facility.
The Company has already purchased the land, and with the strong support of the local Shamrock Economic Development Corporation, infrastructure works, budgeted at US$2.6 million for gas, water and sewage, have recently begun.
The total budgeted cost of the Shamrock project is approximately US$93 million. The Company has engaged the services of a leading U.S. Investment Bank to advise on the financing, which is projected to be approximately US$73 million. It is anticipated that the financing to close in the second quarter of 2023, with ground breaking to begin soon thereafter.
Non-Brokered Private Placement
The Company also announced that it has filed a request with the proper authorities that would allow the Company to sell up to 10,000,000 units in a non-brokered private placement at $0.50 per unit. Once approval is received, the Company expects to advise stakeholders accordingly and then proceed with the preparation of the necessary subscription agreements.
The Company plans to allocate the gross proceeds of the Private Placement to general working capital purposes and to help accelerate North American expansion plans. Closing of the Private Placement is subject to the approval of the Exchange.
About Ecolomondo Corporation
Ecolomondo Corporation is a Canadian cleantech company headquartered in Québec, Canada with an over 25-year history focused on waste-to-resources technology development and deployment. Ecolomondo has developed the Thermal Decomposition Process (“TDP”), which recovers high-value circular commodities from end-of-life tires, including recovered carbon black (“rCB”), oil and steel. TDP lowers carbon emissions by up to 90% compared to the production of virgin carbon black. Ecolomondo has adopted a triple bottom line approach to business focused on people, planet and profit. Ecolomondo trades on the TSX Venture Exchange under the symbol (TSXV:ECM) (OTC:ECLMF). To learn more, visit www.ecolomondo.com
Ecolomondo Corporation Contact
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
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 assurance 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.
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.