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Ecolomondo Reaches a Conditional Amending Agreement to Postpone Capital and Interests Payments on its Project Financing Loan with Export Development Canada
(NewMediaWire) - May 29, 2024 - TheNewswire - 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 global deployment of TDP turnkey facilities, has reached a Conditional Amending Agreement (the "ConditionalAmendingAgreement") to postpone capital and interest payments to its Restructured Loan agreement (the "RestructuredLoan") with Export Development Canada ("EDC") that was previously announced on January 2, 2024.
The original Loan was for an amount of $32.1 million in project financing with EDC, and 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 "Hawkesbury facility") to process end-of-life tires to produce sustainable resources.
In the Restructured Loan Agreement announced on January 2, 2024, the maturity date of the loan was changed to May 2029 and the interest rate was capped at 8.5% per annum. Capital and interest payments were to begin in May 2024 with quarterly installments, capital payments to be calculated based on a 25-year amortization. The Restructured Loan Agreement also called for accumulated interest up to May 2024 to be capitalized and the total Loan would be increased to $37,903,920. Interest on the capitalized interest up to May 2029, the new maturity date, would be waived if both the Loan and the accumulated interest were to be repaid by then.
Subject to the execution of final documentation, which is expected to be completed by the end of May 2024, the Conditional Amending Agreement to the Restructured Loan will allow for the postponement of interest payments due May, August and November 2024, and February 2025 to be paid in kind (capitalized). Capital payments due for the same periods would be added to the amount due on the final maturity date in May 2029.
"This Conditional Amending Agreement along with the recently announced $3 million Loan confirms once again EDC's steadfast support of the Hawkesbury TDP turnkey project, a truly innovative Canadian technology," says Gary Economo, Ecolomondo's CEO.
The Hawkesbury TDP facility initially started testing of its thermal equipment in January 2023 with an initial payload of 1,600 lbs, which was gradually increased to reach the optimal payload goal of 15,000 lbs per production cycle. The Hawkesbury TDP facility is now regularly processing optimal batches of end-of-life tires and from them producing industrial quantities of sustainable quality products: oil, gas and recovered carbon black to be re-entered into the global circular economy for re-use.
About Ecolomondo Corporation
Ecolomondo Corporation is a Canadian cleantech company that prides itself after its proprietary Thermal Decomposition technology TDP which is headquartered in Qubec, Canada. It has a 25-year history and during this time has been focused on its development of its technology and the deployment of TDP turnkey facilities. TDP recovers high value re-usable commodities from scrap tire waste, notably rCB, oil, syngas, fiber and steel. Ecolomondo expects to be a leading player in the cleantech space and be an active contributor to the global circular economy. Ecolomondo trades in Canada on the TSX Venture Exchange under the symbol (TSXV:ECM) and in the United States under the symbol (OTCQB:ECLMF). To learn more, visit www.ecolomondo.com
About the Hawkesbury Plant A 2-Reactor TDP Facility
The Hawkesbury facility building is 46,200 sq.ft and has an impressive indoor clearance of 28 feet. It is state-of-the-art and houses 4 main production departments, tire shredding, thermal decomposition, recycled carbon black refining and oil fractionation. Once fully operational, this facility is expected to process 1.3M of scrap tires per year and produce 8.7M lbs of recovered carbon black, 34,608 barrels of oil, 2.9M lbs of steel, and 2.6M lbs of process gas.
About the Shamrock Project A 6-Reactor TDP Facility
Processing capabilities for the Shamrock facility is projected at 5.5M per year of end-of-life tires, yielding approximately 35.1M lbs of recovered carbon black, 128,100 barrels of oil, 11.9M lbs of steel, and 10.6M lbs of syngas; roughly three times the size of the Company's Hawkesbury (Ontario) plant output. Facility construction is expected to begin by the third quarter of 2024 with completion expected by the end of the fourth quarter of 2025. Projected cost to build is approximately US $93 million.
Our Mission, Vision & Strategy
Ecolomondo's mission is to be a contributing participant in a dynamic Circular Economy and to increase shareholder value by producing and supplying large quantities of recovered resources to be re-used in the manufacture of new products.
Ecolomondo's vision is to be a leading producer and reseller of recovered resources by building and operating TDP facilities, strategically located in industrialized countries, close to feedstock, labor and offtake clients.
Our strategy is to become a major global builder and operator of TDP turnkey facilities, for now specializing in the processing of ELTs. Our intent is to expand aggressively in North America and Europe. Our experience and modular technology should help us get there faster and better. We plan to keep performing ongoing research and development to ensure that Ecolomondo remains technologically advanced.
ISCC Certification
A confirmation of the Company's successful process lies in the recent International Sustainability and Carbon Certification ("ISCC") for its Hawkesbury TDP facility, another step forward that should help improve demand for TDP. ISCC is a Global Sustainability Certification System and offers chain-of-custody certification systems to ensure traceability and feedstock identity, which can add commercial value to the Company's end-products as they remain traceable in the supply chain.
ISO Certification
The Company has obtained ISO 9001:2015, ISO 14001:2015 & ISO 45001:2018 certification of its Integrated Management System (IMS), which acknowledges Ecolomondo's commitment for quality, environmental impact and health and safety at work.
Environmental, Social & Governance (ESG)
On the social aspect the Company plans to measure global health and safety, injury rate and gender diversity, and finally in the corporate governance aspect, the Company is measuring ethics and anticorruption, ESG reporting and board independence.
About TDP
The TDP process is technically proven and more advanced than most other pyrolysis technologies. Over the years, our Technological teams were able to overcome all uncertainties that plagued most competitors especially in these areas: pre-filtration, reactor cooling, reactor rotation, water recycling, processing of rCB, (hydrocarbon removal), mass monitoring, heat curve development, humidity and water removal, safety testing, system automation, emissions control and monitoring.
TDP is Environmentally Friendly CO2 Reduction
By producing rCB, TDP reduces GHG emissions by 90% versus the production of virgin carbon black. The production of rCB at the Hawkesbury and Shamrock facilities are expected to reduce CO2 emissions by 22,400 and 67,200 tons per year, respectively.
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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.
