Montreal, QC, November 29, 2023 — 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, announces that it has released its unaudited consolidated financial statements and notes thereto and its related management discussion and analysis for the nine-month period ended September 30, 2023 (the “Interim Financial Statements”). The documents are available on SEDAR at www.sedar.com.
During the quarter ended September 30, 2023, the Company gained significant headway in production ramp-up of its state-of-the art Hawkesbury TDP turnkey facility. During the quarter, the company had revenues of $105,486 mostly from the sale of end-products produced at the Hawkesbury facility. Numerous customers that have purchased Ecolomondo’s end-products have expressed satisfaction and many of them have placed repeat orders. The Company also continued to prepare for the construction of its unprecedented Shamrock, Texas, TDP turnkey facility, expected to begin by the third quarter of 2024. The Company continued to promote its TDP proprietary technology while evaluating potential sites to build future TDP turnkey facilities as part of its global strategy to become a major producer and reseller of quality recovered products.
Highlights of the unaudited consolidated financial statements and notes thereto for the interim period ended September 30, 2023, are:
- The Company had revenues of $105,486 mostly from the sale of end-products produced at the Hawkesbury facility.
- The Company received a further advance from a company under common control of $725,300 bringing the total for the year to $1,175,300.
- Loss for the quarter was $511,354, compared to $573,152 for the same period in 2022.
- As of September 30, 2023, capital expenditures for the Hawkesbury TDP turnkey facility totaled $46,234,419.
- Accounts payable and accrued liabilities decreased by $1,053,480 between December 31, 2022, and September 30, 2023.
- On October 1, 2023, the company secured a further advance of $1,000,000 from a company under common control.
- On October 10, 2023, the Company filed an application for listing on the OTCQB Markets under the symbol “ECLMF” in the United States operated by OTC Markets Group Inc. This significant step further solidifies Ecolomondo’s commitment to expanding its global footprint and accessibility for investors. Ecolomondo’s common shares will continue to trade on the TSX Venture Exchange under the symbol “ECM”.
- Ecolomondo entered into amending agreements to the original loan agreement with Export Development Canada (“EDC”) on July 26, September 28, and subsequently on October 31. The Original loan Agreement was 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 renewable resources. The Amending Agreements allow for the postponement of principal and interest payments to November 30, 2023, as the Company continues to work through the final documentation of renegotiating the conditions of its asset-backed loan with the EDC.
Ecolomondo successfully performed the simultaneous production cycles of optimal payloads using both the reactors at its Hawkesbury TDP facility. The facility initially began testing its reactors in January 2023 with an initial payload of 1,600 lbs and payloads were gradually increased and reached the optimal payload goal of 15,000 lbs per production cycle of each reactor.
On July 11, 2023, the Company announced that it received the International Sustainability and Carbon Certification (“ISCC”) for its Hawkesbury TDP facility, another step forward towards commercial operations. ISCC is a Global Sustainability Certification System and offers chain-of-custody certification systems to ensure traceability and feedstock identity.
On August 2, 2023, Reactor 1 of its 2-reactor TDP plant in Hawkesbury, Ontario, received certification by the Technical Standards and Safety Authority (“TSSA”) of Ontario to allow the use of the syngas (process gas) produced from TDP production cycles as the energy source to fire up the reactor. The certification for the 2nd reactor is in process.
During the third quarter of 2023, the Company continued to make considerable headway at its Shamrock, Texas TDP turnkey project. The Shamrock facility will serve as the Company’s flagship entry into the US market. Coupled with the production capacity of the Hawkesbury (Ontario) facility, the Company will produce over 43M lbs of recovered carbon black per year. Management believes that this unprecedented production capacity of recovered carbon black should position Ecolomondo to become a major industry player.
The total budgeted cost of the Shamrock facility is projected to be approximately US$93 million. The Company expects to begin groundbreaking in the third quarter of 2024. The company expects to finance the project by receiving a US$80M Private Activity Bond through the State of Texas supported by the Shamrock Economic Development Corporation.
Amendments to Previous Press Releases
- Market Making Services Agreement with ITG
The Company is seeking acceptance by the TSX Venture Exchange (the “Exchange“) regarding the market making services agreement between the Company and Independent Trading Group (ITG), Inc. (“ITG“) that was announced in a press release dated September 29, 2023 (the “Services Agreement“).
As a result of the Exchange’s review, the Company made the following edits to the Services Agreement:
A reference to a section has been corrected to reflect the appropriate section.
Any assignment of the Services Agreement will be done in accordance with and subject to the Exchanges requirements; and
Any amendment to the Services Agreement will be subject to the Exchange’s approval.
The Services Agreement is subject to acceptance by the Exchange.
About Independent Trading Group (ITG), Inc.
ITG is a Toronto-based CIRO dealer-member that specializes in market making, liquidity provision, agency execution, ultra-low latency connectivity, and bespoke algorithmic trading solutions. Established in 1992, with a focus on
market structure, execution and trading, ITG has leveraged its own proprietary technology to deliver high quality liquidity provision and execution services to a broad array of public issuers and institutional investors. For further information regarding ITG, please visit ITG’s website at https://independent-trading-group.com.
- Ecolomondo announces an expanded leadership team
In a press release dated October 4, 2023, the text “Vaizag holds an MBA degree in Finance from Carleton University and is a CPA and CFA” is corrected to “Vaizag holds an MBA degree in Finance from Carleton University and holds a CA and CFA Level 2 Cleared certification“.
About Ecolomondo Corporation
Ecolomondo Corporation is a Canadian cleantech company that prides itself after its proprietary Thermal Decomposition technology TDP which is headquartered in Québec, 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 on the TSX Venture Exchange under the symbol (TSXV:ECM). 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.
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.
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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Ecolomondo Corporation Contact
Chairman and Chief Executive Officer, Ecolomondo
Tel: (450) 587-5999
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 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.