Ecolomondo completes Hawkesbury line installation
2022-10-03 14:49 ET – News Release
Mr. Eliot Sorella reports
ECOLOMONDO PROVIDES CORPORATE UPDATE
Ecolomondo Corp. has provided 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 Quebec, 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).