Northstar Clean Technologies Secures First Funding from BDC

Northstar Clean Technologies Draws on Project Loan Facility

Northstar Clean Technologies Inc. (TSXV: ROOF, OTCQB: ROOOF) recently made a significant move by drawing approximately C$1.6 million from its C$8.75 million project loan facility with the Business Development Bank of Canada (BDC). This funding will support the company's planned asphalt shingle reprocessing facility, known as the Empower Calgary Facility.

Understanding the Funding Details

The draw from the BDC Facility represents a crucial step for Northstar, showing that they have met all required conditions to access this financial aid. The BDC Facility features a remarkable 15-year repayment term, paired with an initial two-year period during which Northstar will be responsible only for interest payments. The fixed annual interest rate has been adjusted to 7.95% for the first five years, previously set at 8.35%.

Leadership Insights on the Project

Aidan Mills, the President and CEO of Northstar, expressed enthusiasm regarding the first draw from the BDC Facility. He highlighted that this draw marks notable progress, affirming that the Empower Calgary Facility is advancing towards operational status. Mills emphasized the importance of BDC as a financial partner and expressed gratitude for their support, which has played a vital role in realizing this pioneering initiative.

Northstar's Vision for a Sustainable Future

The company is committed to sustainability through its innovative approach to recycling asphalt shingles. By reprocessing these materials, Northstar aims to divert waste away from overflowing landfills while recovering valuable resources that can be reused in new construction projects. This aligns with the larger trend toward a circular economy, where materials are reused rather than discarded.

Bottlenecks and Support from BDC

Reese Jenkins, a Director of Corporate Financing at BDC, reiterated the bank's dedication to supporting Northstar in addressing significant environmental challenges. He expressed that the initial draw of funding showcases their commitment to building a greener economy, aiding Northstar in achieving its short and long-term goals.

About Northstar Clean Technologies

Northstar Clean Technologies is an emerging player in the realm of clean technology, specializing in the sustainable recovery and reprocessing of asphalt shingles. The company has crafted a proprietary process designed to retrieve liquid asphalt and usable materials from shingles, contributing to new hot mix asphalt, shingle production, and other industrial applications. Their operations target the reprocessing of asphalt waste, converting it back into valuable resources, ultimately aiming to become a leader in this sector across North America.

Future Prospects for Northstar

Looking ahead, Northstar Clean Technologies is focused on enhancing its operational capabilities and expanding its reach in both Canada and the US. By collaborating closely with BDC, the company aims to pave the way for future projects that could further evolve their environmentally friendly technology.

Frequently Asked Questions

What is the purpose of the project loan facility secured by Northstar?

The project loan facility is primarily aimed at funding the Empower Calgary Facility, which focuses on recycling asphalt shingles sustainably.

How much has Northstar drawn from the BDC Facility?

Northstar has drawn approximately C$1.6 million from its C$8.75 million loan facility.

What are the key features of the BDC Facility?

The BDC Facility includes a 15-year repayment period, with two years of only interest payments and a fixed interest rate of 7.95% for the first five years.

Who are the key executives at Northstar Clean Technologies?

Aidan Mills serves as the President and CEO, directing the company's strategic initiatives, alongside other leadership in finance and operations.

What is the mission of Northstar in the clean tech sector?

Northstar aims to lead the recovery and reprocessing of asphalt shingles, converting waste into usable materials to support a circular economy.

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