VANCOUVER, BC, July 7, 2023 /CNW/ - Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce that, following its June 15, 2023 announcement of a non-binding term sheet, it has entered into a binding definitive credit agreement (the "Credit Agreement") 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"). The Company intends to use the proceeds from the BDC Financing for the development and construction of its planned asphalt shingle reprocessing facility in Calgary, Alberta (the "Empower Calgary Facility").
The following is a summary of the material terms of the Credit Agreement.
BDC will provide a senior secured loan of up to C$8.75 million;
15-year repayment period, with a 2-year interest only payment period;
Fixed 5-year interest rate of 8.35% payable monthly.
The BDC Financing is subject to a one-time fee of C$43,750, which has already been paid by Northstar, and an annual fee of C$1,000.
Mr. Aidan Mills, President & CEO and Director of Northstar, stated "Over the last year, we have engaged with numerous potential investors in our effort to finance the construction of the Empower Calgary Facility and I am happy to say that we have now secured our ideal long-term financing partner in BDC. The terms of this debt financing are very favourable – 15-year term, low interest rate, re-financing potential, and minimal closing and due diligence fees. We believe this funding and securing BDC as a partner going forward adds significant value to Northstar and our shareholders. Combined with the Emissions Reduction Alberta government grant of C$7.1 million, the BDC Financing of C$8.75 million provides nearly C$16 million in non-dilutive funding for the Empower Calgary Facility."
In connection with the BDC Financing, the Company will pay a finder's fee to Independent Traders Group Inc. ("ITG") of C$87,500 in cash and will issue up to C$87,500 in common share purchase warrants (each, a "Warrant") exercisable at $0.35 per common share of the Company for a period of 24 months or up to 36 months subject to TSX Venture Exchange policies and approval. The BDC Financing and payment of the finder's fee remain subject to regulatory and exchange approvals to the extent required.
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.
On Behalf of the Board of Directors,
Aidan Mills
President & CEO, Director
不列顛哥倫比亞省溫哥華,2023年7月7日 /CNW/ — Northstar Clean Technologies Inc.(多倫多證券交易所股票代碼:ROOF)(OTCQB:ROOF)(“Northstar” 或 “公司”)欣然宣佈,繼2023年6月15日宣佈不具約束力的條款表之後,它已與加拿大商業發展銀行(“BDC”)就該項目簽訂了具有約束力的最終信貸協議(“信貸協議”)爲高達875萬加元的非循環優先擔保債務融資(“BDC融資”)。該公司打算將BDC融資的收益用於開發和建造其計劃在艾伯塔省卡爾加里建造的瀝青瓦後處理設施(“Empower Calgargary 工廠”)。
以下是信貸協議重要條款的摘要。
BDC將提供高達875萬加元的優先擔保貸款;
15 年還款期,只有 2 年利息還款期;
固定5年期利率爲8.35%,每月支付。
BDC融資需支付43,750加元的一次性費用,這筆費用已由Northstar支付,年費爲1,000加元。
Northstar總裁兼首席執行官兼董事艾丹·米爾斯表示:“在過去的一年中,我們與許多潛在投資者進行了接觸,爲Empower Calgargary設施的建設提供資金,我很高興地說,我們現在已經在BDC找到了理想的長期融資合作伙伴。這種債務融資的條件非常優惠——期限爲15年,利率低,再融資潛力,以及最低的交易和盡職調查費用。我們相信,這筆資金以及確保BDC成爲未來的合作伙伴,爲Northstar和我們的股東增加了可觀的價值。再加上艾伯塔省政府710萬加元的減排撥款,875萬加元的BDC融資爲Empower Calgary融資提供了近1600萬加元的非攤薄資金。”
關於BDC融資,公司將向獨立交易者集團公司(“ITG”)支付87,500加元的發現費,並將發行高達87,500加元的普通股購買權證(每份均爲 “認股權證”),可按公司每股普通股0.35美元的價格行使,期限爲24個月或最長36個月,但須遵守多倫多證券交易所風險投資交易所的政策和批准。在要求的範圍內,BDC融資和發現者費用的支付仍需獲得監管和交易所的批准。
關於Northstar
Northstar Clean Technologies Inc. 是一家總部位於加拿大的清潔技術公司,專注於瀝青瓦的可持續回收和再處理。Northstar開發了一種專有的設計工藝,用於回收廢棄的瀝青瓦,原本運往已經人滿爲患的垃圾填埋場,然後提取液態瀝青用於新的熱拌瀝青、瓦片製造和瀝青平屋頂系統,以及用於建築產品和其他工業應用的骨料和纖維。Northstar專注於循環經濟,計劃將用過或有缺陷的瀝青瓦廢物再加工回其三個主要部件,以便在艾伯塔省卡爾加里的第一個商業規模化設施中重複使用/轉售。作爲可持續加工領域的新興創新者,Northstar的使命是成爲北美瀝青瓦回收和再處理領域的領導者,從瀝青瓦中提取回收的成分,否則這些成分將被送往垃圾填埋場。
代表董事會,
艾丹·米爾斯
總裁兼首席執行官兼董事