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 concluded the final documentation to the previously announced $3 million loan with Export Development Canada (EDC).

This Loan, previously announced on May 28, 2024, is in addition and separate to the original Loan of $32.1 million that was executed in April 2019 and restructured in December 2023 with a restated capital amount of $37,903,920. The original $32.1 million project financing Loan with EDC was to finance the construction of the Company’s first of its kind new turnkey thermal decomposition facility in the Town of Hawkesbury, Ontario (Hawkesbury facility) that will process end-of-life tires to produce re-usable sustainable resources.

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Hawkesbury facility. | Photo by Ecolomondo Corporation.

The Loan of $3 million is extended to the Company’s subsidiary, Ecolomondo Environmental (Hawkesbury) Inc., owner of the Hawkesbury facility. The additional funds will improve the Hawkesbury subsidiary’s cash position and pay for additional equipment needed to bring the Hawkesbury plant to full commercial operation.

The Loan calls for a 2-year term, with a floating interest rate of prime plus 8%. Interest payments will be capitalized until February 28, 2025 and payable thereafter on a monthly basis. Principal along with the interest will be repaid in monthly installments over a period of 12 months starting April 2025.

The collateral to the Loan is a first rank security interest and hypothec of $3 million on all of the borrower’s future and present personal/movable property, and real immovable property owned by Ecolomondo Environmental (Hawkesbury) Inc.

“We are pleased to receive EDC’s confidence and their continuous support. This important step will enable Ecolomondo to reach its full potential and significantly contribute to the global circular economy”, says Gary Economo, Ecolomondo’s CEO.

Issuance of Stock Options to An Employee

The Company’s subsidiary, Ecolomondo Environmental (Hawkesbury) Inc., hired Mr. Ross Burt on June 10, 2024 as Plant Manager for the Hawkesbury facility. Concurrent with his appointment and subject to the acceptance of the TSX Venture Exchange where applicable, the Company announces the grant of 250,000 stock options for the purchase of 250,000 common shares of the Company at an exercise price of $0.26875 per share for a period of five years from the date of grant.

All options issued were granted in accordance with and subject to the Company’s stock option plan and are also subject to the applicable policies of the TSX Venture Exchange.

Correction to a Previous Press Release on Mr. Gary Economo

The press release dated May 1, 2024, announcing the appointment of Mr. Gary Economo as CEO, indicated that “Concurrent with the appointment of Mr. Economo and subject to the acceptance of the TSX Venture Exchange where applicable, the Company announces the grant of 1,100,000 stock options at a price of $0.165 (the “Options”). The Options shall be exercised at the latest on the first-year anniversary of the appointment (…)”.

The text should have read “(…) Options shall be exercised at the latest on the second-year anniversary of the appointment(…)” (emphasis added).

Press release by Ecolomondo.