Cielo Provides Update on its British Columbia SAF Project, Now Named Project Nahoonai, and Announces Early Warrant Exercise Incentive Program

The most recent press release (May 28, 2026) announces two items. First, the flagship sustainable aviation fuel project in Prince George, British Columbia, previously called Project Nexus, has been renamed Project Nahoonai – a Dakelh name approved by the Lheidli T’enneh First Nation. The company confirms that carbon capture and storage (CCS) will be integrated into the facility, enabling the product to be carbon-negative and eligible for additional compliance credits under BC’s LCFS and federal Clean Fuel Regulations. No project milestones, timelines, or capital cost estimates are updated. Second, subject to exchange approval, Cielo proposes an Early Warrant Exercise Incentive Program. This targets 33,523,323 outstanding warrants issued July 25, 2025 (exercise price $0.15, expiring July 25, 2027). If holders exercise during a 30‑day window, they receive an additional Incentive Warrant with an exercise price of $0.075 and a three‑year term. 9,615,964 of those warrants have already expired unexercised; no insiders hold eligible warrants. The program is a clear attempt to raise cash, as the $0.15 exercise price is well above the current share price.

The project rename and CCS integration are incremental positive signals, reinforcing the relationship with the Lheidli T’enneh First Nation and potentially improving project economics through LCFS/CFR compliance credits. However, these are design refinements, not concrete achievements. The project remains at a pre‑feasibility stage, with no Final Investment Decision (FID), no definitive off‑take, and no binding financing. In context, earlier news (March 2026) established a non‑binding partnership with Tano T’enneh Enterprises for up to 51% Indigenous ownership and identified potential funding sources (Canada Infrastructure Bank, loan guarantees, etc.), but no binding agreements have been reached. The CCS detail is new, but its impact is fully contingent on project execution.

The warrant incentive program is more indicative of near‑term financial pressure. With the stock trading at $0.08, the $0.15 exercise price is deeply out of the money; the program effectively tries to induce early exercise by granting an additional low‑priced warrant. This mechanism is dilutive and signals an inability to raise capital through conventional means. The company has repeatedly fundraised at $0.05–$0.06 per share in recent quarters and closed a $1M placement as recently as March 2026. That the cash runway is so short that it needs to pull forward warrant proceeds at a loss to warrant holders suggests the balance sheet is fragile.

Taken together, the news is a mix of incremental project development and a dilutive financing tactic. It does not exceed or materially alter existing expectations; the market has already priced in the slow progression of Project Nexus. Thus, the most recent news is Routine – Neutral.

Cielo Waste Solutions is a Canadian cleantech company transitioning from a broad waste‑to‑fuels mandate to a focused developer of sustainable aviation fuel (SAF). Its flagship initiative is a proposed SAF facility in Prince George, BC (renamed Project Nahoonai). The project is to be developed in partnership with the Lheidli T’enneh First Nation (via Tano T’enneh Enterprises) with up to 51% Indigenous ownership. Feedstock would be forestry residues, harvest residuals, used railway ties, and other waste woody materials – not food‑based crops. The company recently acquired proprietary project evaluation and modeling assets from CDL Biofuels to form a “Nexus Platform” to accelerate SAF and clean fuels project development. The project is pre‑feasibility/early‑engineering stage; no FID has been taken.