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Montreal, May 27, 2021 Ecolomondo Corporation (TSX-V: ECM) (the “Company” or “Ecolomondo”) releases its unaudited interim consolidated financial statements and notes hereto and its related management discussion & analysis (“MD&A”) for the interim period ended March 31, 2021 (the “Interim Financial Statements”).
During the first quarter of 2021, the Company continued to aggressively market its TDP turnkey facilities and to build its new Hawkesbury TDP turnkey facility (the “Project”).
Mechanical assembly and installation of the Hawkesbury Project are scheduled to be completed during the next quarter, with commissioning expected to be completed in the third quarter of 2021. Once built, the plant will be equipped with the latest technology and is designed to ensure efficient handling and processing of large quantities of feedstock (scrap tires) and end-products: oil, steel, fiber, recycled carbon black and process gas.
The Hawkesbury TDP facility will be comprised of four different processing departments (shredding, thermal processing, recovered carbon black processing, oil fractionation) and, once fully operational, this facility is expected to process a minimum of 14,000 tons of tire waste per year and 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.
Once commissioned, the Company projects that in the first full year of commercial operation, the Hawkesbury facility is expected to generate annual revenues of over $10 million with a projected EBITDA of over $5 million.
Please visit the Company’s website at www.ecolomondo.com for updates on the Company’s Hawkesbury facility.
Ecolomondo Hawkesbury TDP Facility
As of March 31, 2021, capital expenditures for the Hawkesbury facility totaled $27,976,037 and the term loan with EDC reached $27,703,032, and was mostly used to purchase plant equipment such as reactors, oil fractionation, recovered carbon black, flare, shredding, scrubbing and equipment installation. The Company also contributed all of its equity share of $5,453,422 to fulfill its loan covenants.
Management believes that the successful commercial operation of the Hawkesbury facility as a TDP turnkey facility is an important step in the Company’s global growth strategy. Achieving this milestone should help bring global attention and help drive sales of TDP turnkey plants.
The Company continued to mobilize for its global expansion. The Company is currently in talks to finalize the sale of several TDP turnkey facilities in Canada and the continental USA. Management believes that the commercial operation of the Hawkesbury facility should solidify Ecolomondo’s position as an industry leader in thermal processing of hydrocarbon waste.
The Company’s facility in Contrecoeur, Quebec, Canada, a 2-reactor industrial-size TDP facility, that was previously used mostly for research and development, is now ready to begin training operators needed for the thermal processing department at the Hawkesbury TDP turnkey facility that is soon to begin commissioning.
Ecolomondo Contrecoeur TDP Facility
Impact of the COVID-19 Pandemic
The world economy is still heavily impacted by the crisis created by the COVID-19 (coronavirus) pandemic. The COVID-19 pandemic has resulted in lockdowns in many parts of Canada and most countries around the world.
The Company has taken and continues to take all necessary precautions needed to mitigate the negative impact brought about by the coronavirus pandemic. The Company advises that the pandemic has been responsible for delays and increases to project overall costs. It advises that it could be further negatively impacted if the current situation persists. As a result, it is impossible to determine with accuracy further disruptions and the consequences that they may bring to the project schedule and overall cost.
About Ecolomondo Corporation
Ecolomondo is a cleantech Canadian company that is commercializing its waste-to-products technology. The Thermal Decomposition Process (“TDP”) converts hydrocarbon waste into marketable commodity end-products, namely carbon black substitute, oil, gas and steel. Technologies such as Ecolomondo’s are expected to play an important role in resource recovery needed in today’s circular economy.
The Company’s main revenues will come from the sale of TDP turnkey facilities and royalties from their operations. TDP facilities will generate revenues from the sale of end-products, tipping fees and carbon credits. Ecolomondo’s first focus is to market TDP turnkey facilities that use scrap tires as a feedstock, because scrap tires yield end-products with a higher commercial value, especially the recycled carbon black.
Management believes that technological breakthroughs in areas of emissions, process optimization, automation, end-product processing and safety, position Ecolomondo to become an industry leader in the resource recovery of hydrocarbon waste.
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 assurances 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.