Ecolomondo announces $32.1 million project financing from Export Development Canada (EDC)
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MONTREAL, Feb. 27, 2019 /CNW Telbec/ - Ecolomondo Environmental (Hawkesbury) Inc., a subsidiary of Ecolomondo Corporation (TSXV: ECM) ("the Company" or "Ecolomondo"), is pleased to announce that it has secured an amount of CAD 32.1 million in project financing ("Financing") from Export Development Canada ("EDC") to build the Company's new, first of its kind turnkey Thermal Decomposition ("TDP") facility that will be located on Tessier Street in the Town of Hawkesbury, Ontario.
Ecolomondo expects to achieve financial close by the end of March 2019, subject to satisfactory documentation of the loan agreement and satisfaction of customary representations, warranties, covenants and conditions that are customary to these types of loans. The loan will bear a floating interest rate using a Canadian reference base rate plus a market-based margin and it will mature on March 31, 2031.
Proceeds of the financing are to be used for engineering, construction and commissioning of the Company's new TDP turnkey facility. The facility will be equipped with 2 of the latest generation reactors capable of processing at least 14,000 tons of tire waste per year yielding 5,300 tons of recycled carbon black, 42,700 barrels of oil, 1,800 tons of steel and 1,600 tons of gas.
Management plans to break ground for the construction of the building in April 2019 and expects to begin commercial operations in the first quarter of 2020.
"The Hawkesbury turnkey facility will be one of the most technologically advanced thermal decomposition facilities in the world. It will be a technological showpiece that will demonstrate the commercial viability of our turnkey plants and that will set the stage for Ecolomondo's future expansion", said Elio Sorella, President and CEO, Ecolomondo.
About EDC
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, we equip 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 our 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.
Management believes that technological breakthroughs in areas of emissions, process optimization, automation, end-product processing and safety, position Ecolomondo to become an industry leader.
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.
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.
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.
SOURCE Ecolomondo Corp
Elio Sorella, Chairman and Chief Executive Officer, Ecolomondo, Tel: (450) 587-5999, [email protected]
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