Cielo Waste Solutions Corp.

For the 3 months ended October 31, 2023, Cielo reported net loss of $1.4 million. The quarter included financing costs of $60,000, G&A of $616,000, research and development of $221,000, and stock-based compensation of $187,000. At period end, total assets were $13.9 million, total liabilities were $5.3 million, long-term liabilities were $1.9 million, and working capital deficiency was $2.1 million. Management did not provide revenue or EPS figures in the call. Looking ahead, the company said the current flow-through share financing is for initial work on Carseland and will not cover the full capital cost, while additional project financing is expected to be structured in a way that minimizes dilution at the parent level.

Ryan Jackson’s message was that the Expander transaction materially improved Cielo’s financing options and helped move the company from early-stage grant and project development toward fundable commercial projects. He emphasized that the company now expects to access conventional financing for cash-flowing projects and that future dilution should be limited, with any additional funding likely to occur in project-level vehicles rather than at the parent company. His tone was cautious but more confident than in prior periods, especially around grants, financing, and permitting progress.

Jasdeep Dhaliwal focused on the balance sheet and quarter-end results, highlighting $13.9 million of total assets against $5.3 million of liabilities and a $2.1 million working capital deficiency. She walked through the quarter’s cost structure: $60,000 in financing costs, $616,000 in G&A, $221,000 in R&D, and $187,000 in stock-based compensation, which together contributed to the $1.4 million net loss. She also explained that the Fort Saskatchewan sale retired the $11 million mortgage, described the $2 million promissory note structure, noted the Q1 2023 restatement tied to a missed impairment component, and said the private placement of flow-through shares is up to $6 million.

Analysts and investors focused on whether grant funding could now be accessed, whether the $6 million flow-through placement would fully fund Carseland Phase 1, and whether future dilution could be avoided. Management said it has grants or grant opportunities tied to Expander technology, Carseland, SDTC, and BC-LCFS, plus a $0.5 million Alberta Innovates grant for the Aldersyde feedstock trial. On financing, management said the $6 million placement only covers initial engineering/feed work for Carseland, and any additional funding would likely come from project-specific financing structures outside the parent company.