VANCOUVER, BC and CALGARY, AB, Sept. 12, 2024 /PRNewswire/ - Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce that it has completed its first draw of approximately C$1.6 million under its C$8.75 million non-revolving senior secured project loan facility (the "BDC Facility") with the Business Development Bank of Canada ("BDC"), previously announced by the Company on July 7, 2023, for the planned asphalt shingle reprocessing facility in Calgary, Alberta (the "Empower Calgary Facility").
Northstar Clean Technologies Logo (CNW Group/Northstar Clean Technologies Inc.)
The Company provided evidence to BDC that it has sufficient funding to fully satisfy all the remaining project costs to project completion of the Empower Calgary Facility. The Company has now satisfied all conditions precedent to draw on the BDC Facility. The Company expects to continue drawing down on the BDC Facility as the Empower Calgary Facility progresses through to completion.
The BDC Facility has a 15-year repayment period with a two-year interest only payment period, which has now commenced. The annual interest rate of the BDC Facility is 7.95% fixed for five years, which has been amended downwards from the previously announced 8.35%.
Mr. Aidan Mills, President & CEO and Director of Northstar, stated, "We are excited to have reached the point of the first draw of the BDC Facility, which marks a significant step forward as it requires demonstrated progress in project expenditures to date and equipment fabrication. The Empower Calgary Facility is moving toward completion and we are grateful to have BDC as a financial partner. BDC's support has been invaluable in funding and facilitating this first-of-its-kind facility. We look forward to successfully operating the Empower Calgary Facility and collaborating with BDC on potential future projects to expand Northstar technology across Canada and the US."
Mr. Reese Jenkins, Director, Corporate Financing at BDC, stated "As the bank for entrepreneurs, BDC is happy to support Northstar in its growth journey and by extension, tackle one of today's big challenges. By providing the initial funding draw on Northstar's project, we are helping to build a greener economy."
About Northstar
Northstar Clean Technologies Inc. is a Canadian 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.
On Behalf of the Board of Directors, Aidan Mills President & CEO, Director
Cautionary Statement on Forward-Looking Information
Neither the TSX Venture Exchange ("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) repayment of the BDC Facility; (ii) operation of the Empower Calgary Facility and continuing todraw down on the BDC Facility as the project progresses; (iii) collaborating with BDC on future projects to expand Northstar technology across Canada and the US; (iv) the Company's plans for reprocessing asphalt shingle waste; and (v) 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 Company's annual information form for the year ended December 31, 2022 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 conflicts in Ukraine and Palestine 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.
