On Thursday, the Cielo Waste Solutions (OTCMKTS:CWSFF) stock emerged as one of the stocks to have suffered a significant selloff. The company provided key updates in relation to its operations yesterday but the announcements did not lead to any kind of optimism among investors and the stock tanked by as much as 16.50%.
Cielo announced that it inked a letter of intent of a non-binding nature with Kodiak Chemical Solutions. Kodiak is interested in acquiring Waste Dividend Naphtha from Cielo and the letter of intent was in relation to that possible acquisition. However, it should be noted that the two parties are yet to agree on the material terms that have been laid down in the letter of intent.
In this regard, the Senior Vice President of Global Development and Indigenous Relations at Cielo, Lionel Robbins spoke as well. He stated that the demand for naphtha is rising at this point in time and this rising demand has created the right opportunity for Cielo to grow its business as well. Although the stock tanked yesterday to a significant degree, many investors will possibly be watching it closely in order to see if there is any recovery.