Cielo Waste Solutions Corp (CMC)

[TraderMikey]

Chatter from Cielo on 8020 Connect about Renewable U exercising their option to enter a JV. Could be interesting.

[TraderMikey]

I see that Cielo is active in their Investor Group on 8020.

[Ubertino]

Cielo holds the exclusive license for the global rights to a transformational, patent-pending, technology that can convert garbage-derived feedstocks, including sorted municipal solid waste (garbage), wood and agriculture waste, tires, blue-box waste, all plastics and virtually any other cellulous waste product into high grade renewable diesel, at a significantly lower cost than biofuel companies.

All I want to see is the "patent pending" technology.

I checked:

Nothing!!

I'll keep my money, thank you very much!

The Chinese and Japanese have been using this same tech since the 1980s!!

Secrets and wonders to behold may sell some, not me.

[WannaBeFatCat]

https://www.8020connect.com/groups/cielo-waste-solutions-corp

https://www.8020connect.com/companies/cielo-waste-solutions-corp

Solid business plan with first commercial refinery on the cusp of going online.

[Ubertino]

What is it they have that is so special?

I've been looking for years and know it involves pyrolysis just like many companies have used and many tried.

What else makes Cielo special?

[ADVFN_johnredcorn]

Worth Billions eventually. It's begun. Cielo is on its way to becoming a multi billion dollar company. As per each plants EBITDA, the potential speaks for itself. This companies time has come. Every country around the globe is desperately trying to solve their garbage problem, landfill problem, electricity problem. Small jurisdictions that burn diesel for electricity have a turnkey solution with Cielo.

I am a shareholder and I expect to sell my first lot a 10.00 and live off dividends after that. This is my personal opinion based on my DD. Good luck to you if you decided to purchase.

[Ubertino]

Cielo Press



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Cielo Corporate Update


Cielo Announces a Memorandum of Understanding With NXGEN Global Inc., Update on Purchase of Land and Related Matters


2017-04-13


Vancouver, British Columbia, Canada / April 13, 2017 / CSE:CMC: Cielo Waste Solutions Corp. ("Cielo" or the "Company") is pleased to announce that it has entered into a Memorandum of Understanding ("MOU") with NxGen Global Inc. ("NxGEN"). Further to the Company's press release on March 31, 2017 ("March 31 PR") relating to working with strategic partner(s) to move forward on the construction of the first six refineries, Cielo is pleased to announce this MOU sets out the initial terms pursuant to which NxGEN proposes to subscribe, on a best efforts basis, for up to 100,000,000 common shares ("Shares") of the Company ("Financing") at a price of $0.10 per common share for gross maximum proceeds of $10,000,000. All of the Shares will be subject to a voting trust agreement, whereby all of the voting rights attached to the Shares will be irrevocably granted to Don Allan, President and CEO of Cielo, such that the Financing will not result in a change of control of Cielo.

If completed, the proceeds of the Financing ("Proceeds") will be used to purchase the High River Property and the High River Refinery, each as defined in the March 31 PR, to retrofit the High River Refinery, and to further develop the Company's proprietary renewable fuel technology. In addition, the Proceeds will be used for general working capital purposes.

The Company anticipates completing the Financing on or about April 28th, 2017 but in any event no later than May 7th, 2017 on the terms set out in the MOU.

Asset Purchase:
The Company is now in the final process of completing the purchase of the idle High River Refinery and High River Property and anticipates that such acquisition will be completed on or before April 21st, 2017.

Joint Venture:
The MOU also provides for the Company and NxGEN to enter into a joint venture agreement ("JV Agreement") for further construction of new refineries. The MOU sets out the initial terms of the contemplated joint venture ("JV") between NxGEN and the Company. If completed, the Company will grant to NXGEN certain rights related to the building and owning of certain interests in and to refineries to be built and commissioned by the Company. While the terms of the JV are subject to further negotiations, if the JV Agreement is concluded, it would initially provide for the funding by NxGEN of 100% of the costs to build and commission a total of five refineries, anticipated to be built on a property in Edmonton, Alberta at an anticipated cost of approximately $50,000,000, with NxGEN or its nominee having a 49.9% ownership of the such refineries. In addition, NxGEN would have a separate right of first refusal to finance, either on its own, or with third parties, on competitive terms, the balance of the costs to build and or commission refineries on

Related Party Loan:
A related party has delivered to the Company a loan in exchange for a demand promissory note ("Note") in the amount of $250,000 (the "Loan") for the purposes of contributing to the purchase of the Higher River Property and the High River Refinery. The Loan constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Shareholders in Special Transactions ("MI 61-101"). Cielo relies on the exemption from the formal valuation requirements of MI 61-101 contained in section 5.5(a) and (b) of MI 61-101 on the basis that the fair market value of the Loan not being more than Twenty-Five Percent (25%) of the market capitalization of Cielo and no securities of Cielo are listed on a specified market set out in such section, and Cielo relies on the exemption from the minority shareholder approval requirements of MI 61-101 contained in Section 5.7(1)(a) and 5.7(1)(b) of MI 61-101 on the basis of the fair market value of the Loan not being more than Twenty-Five Percent (25%) of the market capitalization of Cielo and $2,500,000. As contemplated by MI 61-101, Cielo did not file a material change report in respect of the related party transaction at least 21 days before the issuance of the Note as Cielo was not aware of the Loan at such time.

Don Allan, President and CEO of Cielo, stated "We have worked incredibly hard to bring to the world our game changing technology that deals with reducing landfill waste and generating renewable fuels. Cielo is now poised to become a break out company in the waste to energy industry and to make a serious contribution to reducing greenhouse gas emissions."

Business Development Agreement:
Cielo is also pleased to announce that it has entered into a Business Development Agreement ("BD Agreement") with Merchant Equities Capital Corp. ("Merchant") for the purposes of assisting Cielo in facilitating the transactions contemplated in the MOU. The BD Agreement provides for both cash payment and the issuance of up to 6,000,000 warrants, each Warrant being exercisable for a period of three (3) years from the date of issuance, 4,000,000 at an exercise price of $0.10 per share and 2,000,000 at an exercise price of $0.25 per share.

Convertible Debenture Offering:
As announced in the March 31 PR, the Company has agreed to continue to suspend securing participation into the private placement offering ("Debenture Offering") of up to $7,000,000 ("Loan Amount") in convertible debentures ("Debentures") initially announced on November 29th, 2016 ("Nov 29 PR"), however the Debenture Offering has not been cancelled and will resume in the event that the Financing is not completed. The Debentures would bear an interest rate of 12% per annum and mature in 36 months from the date of issuance. Each subscribed dollar would also result in the issuance of one full warrant, for an aggregate issuance of up to 7,000,000 warrants ("Warrants"), each Warrant allowing the holder ("Debenture Holder") to purchase a common share at $0.25 per share within 24 months, unless the stock trades above $0.50 for 5 consecutive days, in which event the Company will be entitled to provide a 30 day notice period to the Debenture Holders, after which the Warrants will expire if not exercised. Additional terms can be reviewed in the Nov 29 PR.

About Cielo Waste Solutions Corp.:
Cielo specializes in environmentally advanced technologies focused on materials recovery, renewable diesel and landfill reduction through responsible diversion practices. By incorporating the latest material recovery technologies, Cielo is able to achieve significant diversion from landfills while creating a feedstock specifically for renewable diesel. Cielo provides solutions for responsible waste management while also providing value added opportunities.

About NxGen Global Inc.
NxGen Global is a private Canadian corporation focused on delivering innovative solutions for the energy management and services industry. NxGen's experienced management team is dedicated to working with technology innovators to bring disruptive solutions to market by providing smart working capital, strategic thinking, value creation and an experienced management team.

For more information on the Company, please contact

Don Allan, President, at [phone], or visit the Company's website at www.cielows.com

Further information regarding the Company can be found on SEDAR at www.SEDAR.com or by visiting our profile on www.CSE.ca.

On Behalf of the Board of Directors

"Don Allan"
Chief Executive Officer
Tel: [phone] Ext. 222
Email: [e-mail]

http://www.cielows.com/news.php?art=48

[Ubertino]

If not, I would like to see some explanation of what is the relationship.

Or is this a change of direction completely?

[Ubertino]

It surely must have some similar technology.

[Ubertino]

I wonder how this fits in with the existing waste disposal business of Cielo or is it a separate offshoot.

[Ubertino]

Cielo Waste Solutions to buy biodiesel plant in Alberta

NOVEMBER 23, 2016

Canadian renewable diesel technology specialist Cielo Waste Solutions Corp. has signed a commercial purchase agreement with XR Resources to purchase a property located in High River, Alberta, on which there is an existing biodiesel refinery.

This multi-feedstock processing plant was built in 2009 for an approximate capex cost of $10.2 million (€9.4m) and was capable of producing 16 million litres per year of biodiesel.

The aggregate purchase price is $2,300,000, consisting of both share and cash consideration. The initial installment of the purchase price, to be paid by Cielo to XR in consideration for the rights granted in the agreement, will be paid in the form of 5,000,000 common shares in the capital stock of Cielo at a price of $0.06 per share, which shares will be held in trust by legal counsel until the transaction is completed.

In a statement, Cielo said that the balance of the purchase price is comprised of a cash payment of $2,000,000, to be paid upon satisfaction of certain conditions, along with the release of the shares to XR.

The purchase of the property and the refinery is subject to certain conditions, including a financing condition, Cielo's ability to acquire required permits, and due diligence being completed by Cielo to its satisfaction on or before 7 February, 2017.

Once the conditions have been fulfilled or waived, and the purchase price paid, Cielo will acquire all right, title and interest in and to the property and the refinery. The anticipated closing date is 28 February, 2017.

http://biofuels-news.com/display_news/11410/cielo_waste_solutions_to_buy_biodiesel_plant_in_alberta/

[Ubertino]

Cielo begins phase 1 of feedstock study

2014-12-19 17:49 ET - News Release

Mr. Don Allan reports

CIELO UPDATE

Cielo Waste Solutions Corp. has commenced phase 1 of the planned seven phases of engineering with the feedstock characterization study, and is expected to complete the study in early 2015.

"This is very exciting for us, as it is significant momentum for the company in moving forward to commercialization of its technology," stated Don Allan, president and chief executive officer of Cielo.

Cielo also announces that it has signed a three-year service contract with 182043 AB Ltd. for the services of certain management and financial personnel. The service provider will assist Cielo in day-to-day management and operations and aid in the development of the waste-to-fuel technology in the areas of business development, operations and accounting. The service provider will be compensated a monthly fee of $33,500.

Cielo also announces that it has terminated the joint venture agreement dated July 19, 2014, and previously announced on July 21, 2014, with a special purpose corporation to provide financing of up to $10-million for the construction of the company's first 700 litres per hour. Due to continued delays of the SPC to come up with sufficient funds to move the project forward, and despite repeated attempts and correspondences to remedy the issues associated with such delays, Cielo has decided to terminate the JV agreement.

"We are leaving the door open for the investor to rectify the situation if possible, but we cannot allow the project to stall, so we were left with no choice but to terminate the agreement to allow us to review other opportunities that are in front of us now," stated Mr. Allan, president and CEO of Cielo.

Finally, the board of directors of Cielo has accepted the resignation of James Chepyha, effective Dec. 19, 2014. The board of directors would like to thank Mr. Chepyha for his contribution to the company during his tenure. The board would like to welcome Chris Dovbniak. Mr. Dovbniak has been nominated to be elected to the board of directors.

We seek Safe Harbor.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:CMC-2239737&symbol=CMC®ion=C

[Ubertino]

In the case of Cielo "CSE" is for the stock exchange - Canadian Securities Exchange.:



While "CMC" is the ticker for Cielo.

[Ubertino]

CSE stands for Capstone Infrastructure Corp!

[Ubertino]

It is for Capstone Infrastructure Corp (CSE)!

[Ubertino]

That news alert is NOT for Cielo!

[Ubertino]

Niobium-containing MCM-41 silica catalysts for biodiesel production

Full article:
http://gallery.nsumedia.ru/data/Euro/2011/Posters/PM162%20-%201702221.pdf

[Ubertino]

BTW, not to be too flip - but that article on the catalyst could scupper any IP attempts by Cielo et al and turn that $ Billion hope into a cocked hat.

[Ubertino]

Applied Catalysis B: Environmental

Volumes 108–109, 11 October 2011, Pages 161–167

Niobium-containing MCM-41 silica catalysts for biodiesel production

Cristina García-Sancho, Ramón Moreno-Tost, Josefa M. Mérida-Robles, José Santamaría-González, Antonio Jiménez-López, Pedro Maireles-Torres ,

Departamento de Química Inorgánica, Cristalografía y Mineralogía (Unidad Asociada al ICP-CSIC), Facultad de Ciencias, Universidad de Málaga, Campus de Teatinos s/n, 29071 Málaga, Spain

Received 19 April 2011, Revised 8 August 2011, Accepted 18 August 2011, Available online 25 August 2011

Choose an option to locate/access this article:

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Check access

Purchase $41.95

DOI: 10.1016/j.apcatb.2011.08.025
Get rights and content

Abstract
This research focuses on the synthesis and characterization of mesoporous niobosilicate molecular sieves and their catalytic activity in biodiesel production by transesterification of sunflower oil with methanol. Catalysts were prepared by two procedures: impregnation of a MCM-41 silica with different amounts of niobium oxalate and subsequent calcination, and structural incorporation of Nb into a MCM-41 silica during the synthesis step. Characterization techniques such as XRD, XPS, TEM, NH3-TPD and N2 sorption have been employed to characterize the synthesized catalysts. The biodiesel yield increases with the catalyst acidity, attaining a value of 95% with a 7.5 wt% of a MCM-41 silica impregnated with a 8% of Nb2O5, at 200 °C, after 4 h of reaction and a methanol/oil molar ratio of 12. The potential of this family of catalysts to treat low-grade oils has been demonstrated by increasing the acidity of the sunflower oil by adding oleic acid (1.1 wt%) and water (0.2 wt%) to the reaction mixture, since the biodiesel yield is maintained close to 80%. Moreover, the catalyst reutilization has been demonstrated during five catalytic runs by employing a low-grade oil, with no leaching of the active phase.

Graphical abstract
Niobium-containing MCM-41silica catalysts are very active in the methanolysis of sunflower oil at 200 °C, even in the presence of an acidity of 1.1 wt% and 0.2 wt% water, without leaching.

Highlights
Nb2O5 containing mesoporous silica is active for the acid-catalyzed biodiesel production. The catalysts can be reutilized, without leaching of the active phase. They catalyze the methanolysis of triglycerides, even in the presence of water and FFA.

KeywordsNiobium oxide; Mesoporous silica; Biodiesel; Transesterification; Acid catalysis
Corresponding author. Tel.: [phone]; fax: [phone].
Copyright © 2011 Elsevier B.V. All rights reserved.

http://www.sciencedirect.com/science/article/pii/S0926337311003948

[Ubertino]

We use ten rare minerals, like niobium for instance, and it’s our own proprietary catalyst.

Niobium-containing MCM-41 silica catalysts for biodiesel production

Cristina García-Sancho, Ramón Moreno-Tost, Josefa M. Mérida-Robles, José Santamaría-González, Antonio Jiménez-López, Pedro Maireles-Torres,

Abstract

This research focuses on the synthesis and characterization of mesoporous niobosilicate molecular sieves and their catalytic activity in biodiesel production by transesterification of sunflower oil with methanol. Catalysts were prepared by two procedures: impregnation of a MCM-41 silica with different amounts of niobium oxalate and subsequent calcination, and structural incorporation of Nb into a MCM-41 silica during the synthesis step. Characterization techniques such as XRD, XPS, TEM, NH3-TPD and N2 sorption have been employed to characterize the synthesized catalysts. The biodiesel yield increases with the catalyst acidity, attaining a value of 95% with a 7.5 wt% of a MCM-41 silica impregnated with a 8% of Nb2O5, at 200 °C, after 4 h of reaction and a methanol/oil molar ratio of 12. The potential of this family of catalysts to treat low-grade oils has been demonstrated by increasing the acidity of the sunflower oil by adding oleic acid (1.1 wt%) and water (0.2 wt%) to the reaction mixture, since the biodiesel yield is maintained close to 80%. Moreover, the catalyst reutilization has been demonstrated during five catalytic runs by employing a low-grade oil, with no leaching of the active phase.

http://www.sciencedirect.com/science/article/pii/S0926337311003948

[Ubertino]

Cielo Waste Solutions (CSE:CMC) Converts Landfills Into High Grade Diesel Fuel

Written By: James West

May 13, 2014

Posted In:

Cielo Waste Solutions (CSE:CMC) CEO Don Allan has a perfect business model, from an investor’s perspective. Take the world’s 2.2 billion tonnes of landfill trash each day, and convert it into high grade diesel for use in everything from trucks to aircraft. With a gross margin of >80 percent, the company’s value proposition for investors is manifold. Cielo believes it can build 6 plants in a year, which will give it the capacity to produce 32 million litres of diesel a year.

Transcript:
Cielo Waste Solutions ( CSE:CMC) CEO Don Allan has a perfect business model, from an investor’s perspective. Take the world’s 2.2 billion tonnes of landfill trash each day, and convert it into high grade diesel for use in everything from trucks to aircraft. With a gross margin of >80 percent, the company’s value proposition for investors is manifold. Cielo believes it can build 6 plants in a year, which will give it the capacity to produce 32 million litres of diesel a year.

James West: Okay Don, quickly, why don’t you tell me what’s the value proposition for investors in Cielo Waste Systems?

Don Allan: We’ve got a lot going on here. We think we are going to lead the world’s industry when it comes to landfills and turning landfills into high-quality diesel. At the stage we’re in today, there’s very little competition, and when it comes to landfills except for co-generation, our company is managing to take it past power. We take it into the highest quality renewable diesel that you can manufacture in North America and possibly the world.

So, we’re pretty excited. We go in and we try to eliminate at least 90%, if not 95% of the landfill, and we turn it into diesel. We do it with a technology that has no flare stacks, has no emissions. It’s quiet, it’s self-sufficient. It is one of the greenest refineries ever built.

James West: Okay, it begs the question: how do you that?

Don Allan: Well, it’s called Thermo Catalytic De-polymerization, but really all that means is heat and a catalyst. The catalyst being the secret recipe for the way we crack the cellulose of fibers, if you will, into diesel. If you look at catalysts, a catalyst is used in every refinery in the world that’s usually a synthetic zeolite, and then they have some rare minerals that they mix with it in order to have an edge over the competitors.

We use ten rare minerals, like niobium for instance, and it’s our own proprietary catalyst. And it comes down to, the way it works is if you look at a catalyst underneath a microscope, you’ll see a softball, if you will, and that softball has a hundred holes in it, and they’re all different sized holes. Those rare minerals that we use fill those holes up, and they fill them up so that they’re the exact same size or orifice if you will, that allows just the diesel atoms to pass through. Diesel is made up of 8-21 atoms in each molecule, and what we try to do is gather just those, and so we’re capable of doing that by making sure that orifice is just the perfect size that only those atoms can pass through them. And then we’re able to convert that into gas, and from a gas we turn it back into a liquid, and that is the high quality diesel.

James West: So you take garbage, add rocket science, and you get fuel.

Don Allan: Yes, you bet. Yeah, yeah, and when we talk garbage, I mean, there’s a number of different types of feedstocks, anything cellulosic. So, basically what that means is we can use rubber tires, we can use plastics, cardboard, newspaper, agricultural waste, trees, sawdust. Your household garbage: we can use your grass clippngs. We can use your orange peels, your banana peels.

So, basically if you go into a landfill, we’re able to use about 75% of the landfill for feedstock, and then there’s about 20% of landfill that we can sell on the open market like copper and steel. And then basically, the balance of 5% or 10% that’s left over is going to be rocks and dirt, and we basically just crush that and put it back into the ground. So we actually eliminate the landfill.

James West: Well, that’s interesting. So then, what is the revenue model?

Don Allan: To make as much as money as we can, that’s it.

James West: That’s a good revenue model.

Don Allan: We basically — I’m $1.30 right now, I’m on renewable — by renewable diesel per liter is about a $1.30, anywhere from $1.25, $1.30. We actually have a $50 million offtake agreement, at $1.30 leader right now. So on that, we estimated making a profit of about $1.05

James West: That’s a very good margin.

Don Allan: Yes, it’s about 82%. So, we’re quite happy with that margin.

James West: I’m sure you are. So, what is your revenue picture look like for — what did it look like in 2013 versus 2014?

Don Allan: Well, we’ve got an existing plant, and we’ve been running it for roughly about 15 months now. It’s a demonstration plant. It’s 50 liters up hour. It’s what we called batch model which basically just says that we can run it for a couple days, and then we stop and we clean it out, and then we start it all over again.

So, we’re running into building a commercial plant now that’s going to be continuous. We plan to scale it up from 50 liters an hour to 200 liters per hour. So, we hope to be in production and revenue by fall, and then we plan to go to a much larger plant, a 700-liter per hour plant that should be operational by January.

So we should start seeing some revenue come fall. We’ve been out just ten-and-a-half-years to date, and we’ve been doing this without revenue. So, it’s been a long time coming, we’ve got about $13.5 million invested into it. So it’s been a long time coming, we’re looking forward to seeing some revenue.

James West: Wow, that’s amazing. So, basically is the model then to build a facility in central locations where there is a number of landfills around that qualify for your input?

Don Allan: Right, that’s our business model is to actually put these in the landfill. There are some clients that have different types of feedstocks for us, we’re working closely with some clients in the States right now that have access to a lot of sawdust, and so we’ll put them right into the sawdust.

Landfills definitely are our major focus right now. The earth puts out about 2.2 billion tons of garbage per year and we think that’s a pretty good opportunity for feedstock. That’s kind of what we’re focusing on, but of course, there are other what we are focusing on, but there are other potentials. There’s what they call car fluff, it’s the cloth and the plastics and the cardboard from car crushing companies that we can use also, and so we’ve been talking to a number of those types of people.

So, there are a number of different sources here, but we believe 90% of our business comes from landfills, and we’ll put these right into landfill.

James West: Sure, so if you have a 700-liter per hour plant running 24 hours a day, 340 days in a year, you’re grossing at $1.30 liter, 7.4 million per plant at a margin of 82%. That’s extremely attractive from an investor’s point of view, and my question is, so how many of these plants do you envision running by the end of 2014, 2015, and 2016?

Don Allan: Well we believe, right now, we have shortlisted an EPC contractor plus a manufacturer for the plant. We believe we can do about 20 plants a month, so we have potential orders right now for almost $4 billion. So, we think ourselves, we plan to have six of these plants running by the next 48 months here in Alberta producing about 35 million liters a year.

Basically, we think we’ve got two purchase orders today which represent roughly about $23 million, but we’re seeing interest for about $4 billion in potential orders. So, I think once we get that first commercial plant going, we’ll be able to start getting aggressive on some of these purchase orders. I don’t see why we can’t take this and turn this into a pretty amazing business.

James West: So let’s see, who has the feedstock, pretty much every single municipality in the world, who burns diesel pretty much every single community and economy in the world relies heavily on diesel. Are there any aspects to this diesel that make it unsuitable for any normal application?

Don Allan: No, we think actually it’s the petroleum diesel. It’s not really a biodiesel, so it’s more of a petroleum diesel. We call it renewable diesel, which is quite a different diesel than what biodiesel does. Being a renewable diesel, we make what they call a number 2 diesel, which is a highway-grade diesel. You can run it 100% in your vehicle. You don’t have to blend it. But we will blend it, we’re just trying to meet the Canadian mandates, which is basically anywhere from 4% to 7% depending what province you’re in.

So our customers basically are the people that are producing diesel right now so they use it as a blend. We don’t have any freezing issues, so we can use this 12 months a year. Our competition, or the biodiesel, if you will, they can only run them in the summer months because they got a lot of water in their products so they freeze above minus ten degrees. We freeze at minus 120C. So, we’re able to use this in military aircrafts for instance.

So we plan make a number 1 diesel, which is the highest grade diesel that you could produce, and that is our goal here. We’ve already or have made number 1 diesel, but on a commercial scale we still need to prove it. So, we know we can do a number 2 for sure, our focus is number 1.

James West: How much per liter could you sell number 1 diesel for?

Don Allan: Well, it’s multiple times higher, and we’ll leave it at that. It’s negotiable. Number 1 is made so rare in North America, and there’s actually no standard that’s set up there. So, you can’t go to a market and pull off what number 1 is selling for today.

So, you basically got to go to your client, the Air Force, or who you’re selling to, and you’ve got to negotiate a price directly with them. So, it can vary considerably. They spend some outrageous numbers we’ve heard this year but they’re all independent. So that depends on your client.

James West: Okay, how much cost to build a 700-liter plant?

Don Allan: Our cost is about 6.5 million. We sell them for 13 million.

Then of course there are license fees and maintenance fees, and there’s also a loyalty we charge per liter as well. So, we don’t want to sell them all. We want to sell what we have to do we end up purchasing our own plant, and so if you will. We could sell one and own one ourselves. So, our business model as long as many as we possibly can throughout the world, and we will sell a few so we don’t have to do any equity raises and dilute the company.

James West: I see, so you’re not going to finance these things through equity raises, you’re going to finance them through sales?

Don Allan: Correct.

James West: Well, okay, that’s very attractive from an investor’s point of view too, isn’t it?

Don Allan: You bet. We are doing a raise right now so we can build the first commercial plant, but that’s it. We’re hoping that we shouldn’t have to do any raises after this. This could be the only raise we need to do in the company.

James West: Okay, how much of the equity do you control personally, and how much does the rest of you management team, and how much is institutional?

Don Allan: Well, Cielo itself and the shell that we took over. We own about 80% on the shell. Out of that, the technology came from another one of our companies we had and we transferred it into Cielo. We’re just finishing off the legal paperwork as we speak.

By the time that’s all said and done, myself personally, I will own probably somewhere in the neighbourhood of 12%-13% of the company with my family. We’ve spent $13.5 million to date, I’ve put $2.7 million cash into this and my brother’s got $5.5 million cash into it. I’ve been at it ten-and-a-half-years. I still haven’t pulled out a paycheck out of this company.

So we’ve got skin in, and so we paid for every share that we put out there. So, while my family, every time without my brother most well off will probably end up owning close to 20% of the company and we’ve paid for every stock just like everybody else.

We have no options and no warrants in the coming today, and my board of directors do not get paid. We will be doing that at some point but we want to wait until the company is in revenue before we start to and add it in, and of course, we want to put some options into our employees’ hands and our board of directors’ hands, and the raise we’re doing right now will have some warrant attached to it. But as we speak today, there are no options and no warrants in the company.

James West: Wow, I’ve got to say that’s one of the better stories I’ve heard, and I hear a lot of them every day, Don. We’re going to leave it there for now and I’m going to back to you in about three months’ time and we’ll see how progress is. I’d like to thank you for taking the time today.

Don Allan: Thanks James, I appreciate your interest.

James West: My pleasure. Bye for now.

Don Allan: Bye now.

http://www.midasletter.com/2014/05/cielo-waste-solutions-converts-landfills-high-grade-diesel-fuel/