VANCOUVER, BC, June 6, 2023 - Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce that it has entered into a term sheet (the "Term Sheet") with the Business Development Bank of Canada ("BDC") for project financing of up to C$8.75 million in non-revolving senior secured debt (the "BDC Financing"). Proceeds from the BDC Financing will be used for the development and construction of the Company's planned asphalt shingle reprocessing facility in Calgary, Alberta (the "Empower Calgary Facility").
The following is a summary of the material terms of the Term Sheet:
The terms noted above are subject to change at the time of authorization.
The term sheet is non-binding with no guarantee that closing will occur. The progression of the Term Sheet to binding loan documentation is subject to due diligence, satisfaction of customary loan conditions, and is progressing in line with Northstar and BDC's agreed timeline. The BDC Financing is subject to a one-time fee of C$43,750 and an annual fee of C$1,000.
Mr. Aidan Mills, President & CEO and Director of Northstar, stated "We continue to execute on our strategy for the funding of the Empower Calgary Facility, with the objective of minimizing shareholder dilution. Combined with the Emissions Reduction Alberta government grant award of C$7.1 million, the BDC Financing of C$8.75 million would bring nearly C$16 million in non-dilutive funding for the Empower Calgary Facility. We are excited to have entered this Term Sheet with BDC, a leading, reputable, and potential long term strategic partner for Northstar and its Empower Calgary Facility. This represents a further significant step in the Company's quest to deliver a facility capable of diverting 40,000 tonnes of asphalt shingles per year away from Calgary landfills and into the circular economy."
About Northstar
Northstar Clean Technologies Inc. is a Canadian-based clean technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar has developed a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracting the liquid asphalt for use in new hot mix asphalt, shingle manufacturing and asphalt flat roof systems, and aggregate and fiber for use in construction products and other industrial applications. Focused on the circular economy, Northstar plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale at its first commercial scale up facility in Calgary, Alberta. As an emerging innovator in sustainable processing, Northstar's mission is to be the leader in the recovery and reprocessing of asphalt shingles in North America, extracting the recovered components from asphalt shingles that would otherwise be sent to landfill.
For further information about Northstar, please visit www.northstarcleantech.com.
On Behalf of the Board of Directors,
Aidan Mills
President & CEO, Director
Cautionary Statement on Forward-Looking Information
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. The TSXV has neither approved nor disapproved the contents of this press release.
This press release may contain forward–looking information within the meaning of applicable securities legislation, which forward–looking information reflects the Company's current expectations regarding future events. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements concerning: (i) the anticipated execution of definitive loan agreements with respect to the BDC Financing; (ii) the anticipated development and building of the Empower Calgary Facility and, in connection therewith, its estimated capability of diverting 40,000 tonnes of asphalt shingles per year away from Calgary landfills; and (iii) Northstar's ability to become a leader in the recovery and reprocessing of asphalt shingles in North America. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including risks related to factors beyond the control of the Company as well as those risks and uncertainties which are more fully described under the heading "Risk Factors" in the final prospectus of the Company dated June 18, 2021 and in the Company's annual and quarterly management's discussion and analysis and other filings with the Canadian securities regulatory authorities under the Company's profile on SEDAR. Further, the ongoing labour shortages, high energy costs, inflationary pressures, rising interest rates, the global financial climate and the conflict in Ukraine and surrounding regions are some additional factors that are affecting current economic conditions and increasing economic uncertainty, which may impact the Company's operating performance, financial position, and future prospects. Collectively, the potential impacts of this economic environment pose risks that are currently indescribable and immeasurable. Readers are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly, are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. These forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update these forward-looking statements.
