Northstar Announces Receipt of Letter of Interest on Potential Funding for up to Four United States Asphalt Shingle Reprocessing Facilities
Rhea-AI Summary
Northstar Clean Technologies (OTCQB: ROOOF) has received a non-binding Letter of Interest (LOI) from Export Development Canada (EDC) for potential financial support of up to C$12.5 million for its first planned U.S. shingle reprocessing facility, with the possibility of funding for three additional facilities.
The LOI outlines project financing terms where EDC would maintain a first-ranking secured position on the underlying assets, with potential co-lending opportunities. The funding is subject to several conditions, including successful due diligence, commercialization of the Empower Calgary Facility, completion support for US Facility#1, and equity contributions from one or more parties.
The company's U.S. expansion aligns with its existing liquid asphalt off-take arrangements with TAMKO Building Products LLC for the first four facilities in the United States. The project financing structure is similar to Northstar's existing non-revolving secured debt facility with the Business Development Bank of Canada for its Empower Calgary Facility.
Positive
- Potential access to up to C$12.5 million in project financing from EDC
- Opportunity for funding support for up to four U.S. facilities
- Existing liquid asphalt off-take agreements with TAMKO Building Products LLC already in place
- Project financing structure could reduce capital costs and enhance shareholder returns
Negative
- LOI is non-binding and subject to multiple conditions
- Funding contingent on successful completion of due diligence process
- Requires additional equity contributions before accessing EDC debt facility
- Senior secured position requirement may limit additional funding flexibility
News Market Reaction – ROOOF
On the day this news was published, ROOOF gained 6.53%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Similar to the non-revolving secured debt facility outstanding with the Business Development Bank of
"While still early days, we are very encouraged by EDC's interest to potentially provide financial support for our growth aspirations in
"The LOI from EDC could ultimately lead to a foundational funding vehicle for Northstar's US capital strategy," commented Greg Phaneuf, VP Corporate Development & CFO. "Northstar's business model lends itself to prudent leverage to materially reduce our project cost of capital, thereby enhancing returns for our shareholders. We look forward to working with EDC to crystallize funding terms as part of our larger growth capital initiatives."
About Northstar
Northstar is a Canadian waste to value technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar developed and owns a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracts the liquid asphalt for use in new hot mix asphalt shingle manufacturing and asphalt flat roof systems while also extracting 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 with its first commercial scale up facility in
U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on https://www.otcmarkets.com/.
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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange 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", "aim", "objective" or similar expressions. Forward-looking statements in this press release include statements concerning: (i) Northstar's plans to reprocess used shingles into their component parts in the inaugural commercial facility in
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; inability of the Company to execute on its business plans; changes in business plans and strategies of the Company; the Company may require additional financing which may not be obtainable or on favourable terms; risk inherent to any capital financing transactions; economic uncertainty; and the risks and uncertainties which are more fully described under the heading "Risk Factors" 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+. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company does not undertake any obligation to update such forward–looking information whether because of new information, future events or otherwise, except as expressly required by applicable law.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, expected or aimed. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.
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SOURCE Northstar Clean Technologies Inc.
FAQ
What is the potential funding amount offered to Northstar (ROOOF) by Export Development Canada?
What are the main conditions for Northstar (ROOOF) to receive EDC funding?
How many U.S. facilities could potentially receive funding under the EDC Letter of Interest?
Who is Northstar's off-take partner for the planned U.S. facilities?
What type of security position will EDC maintain in the financing arrangement?
