Ecolomondo Signs Loan Agreement for $32.1 Million in Project Financing with Export Development Canada (EDC)
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MONTREAL, April 3, 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 entered this day into a loan agreement ("Loan") for an amount of CAD 32.1 million in project financing ("Financing") with Export Development Canada ("EDC"), the proceeds of which are to be used 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.
This Loan Facility reflects the term sheet that was previously entered into on February 27, 2019 and as announced in a previous press release. The Loan will bear a floating interest rate using a Canadian reference base rate plus a market-based margin. Scheduled drawdowns are to begin in August 2019 upon completion of conditions precedent to funding, which are customary to financings of this nature. Repayment of the Loan is scheduled to commence on March 31, 2021 and the Loan will mature on June 30, 2031.
Once built and fully operational, this turnkey TDP facility is expected to process a minimum of 14,000 tons of tire waste per year and to produce 5,300 tons of recycled carbon black, 42,700 barrels of oil, 1,800 tons of steel and 1,600 tons of process gas.
Management now expects to break ground by June 2019 and to begin commissioning of the TDP facility in the first quarter of 2020, as originally scheduled.
"Ecolomondo is proud to conclude this loan agreement for this innovative project and proud to do so with an extremely professional organization such as Export Development Canada. EDC will be a key player in the commercialization of our cleantech proprietary technology and in doing so EDC is supporting the development of Ecolomondo's future expansion both in Canada and overseas", 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, 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.
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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