#Canada #Calgary #Northstar Clean Technologies #Empower Calgary Facility #asphalt recycling

Northstar Clean Technologies 2024 Financial and Operational Results

Northstar Clean Technologies Inc. (TSXV: ROOF) has unveiled its financial and operational outcomes for the year ending December 31, 2024. The results showcase the company’s significant strides towards sustainable asphalt shingle recovery and the progress made in their operational facilities. This announcement comes at a crucial time as the company aims to solidify its market presence in North America for asphalt reprocessing.

Key Developments in 2024

One of the most notable achievements in 2024 was the advancement of Northstar's first asphalt reprocessing plant, known as the Empower Calgary Facility. Located in Calgary, Alberta, this facility has reached substantial completion and is poised to begin operations by mid-2025. Key operational milestones achieved throughout the year include:

• - Signing a five-year manufacturing waste asphalt shingle supply agreement with IKO Industries Ltd.
• - Establishing a three-year supply agreement with Ecco Recycling Energy Corporation for asphalt shingles.

These agreements are critical components that seek to ensure a consistent supply of materials and align with the previously executed strategic supply contract with McAsphalt Industries Ltd in 2023.

Secured Funding Initiatives

Throughout 2024, Northstar completed various financing arrangements to support its operational goals. These include:

• - Successfully raising $3.65 million through an oversubscribed convertible debenture private placement, which included investment from TAMKO Building Products LLC, a strategic investor.
• - Receiving $1.34 million from Emission Reduction Alberta, representing the first payment in a total grant of $7.1 million to the company. This funding marks a significant endorsement from ERA, with further assessments on construction and progress expected soon.
• - Closing a US$1.8 million unsecured convertible debenture with Allmine Paving LLC, part of TAMKO's broader US$10 million strategic financing.
• - Securing $2.25 million from two strategic investors based in Calgary.
• - Executing a $14 million Royalty Financing with CVW Cleantech Inc., structured as a convertible debenture tied to future revenue streams.
• - Drawing $8.1 million from the Business Development Bank of Canada under a senior secured project loan facility.

These diverse funding strategies not only push the company closer to operational readiness for the Calgary facility but also provide a foundation for future expansion efforts.

Plans for Expansion

In parallel with the developments at the Calgary facility, Northstar is actively working to expand its operations across North America. Significant progress includes:

• - Signing a letter of intent for a 15-year lease with Great Lakes Port Management for an industrial site in Hamilton, Ontario, which is intended for a future asphalt shingle reprocessing facility (Empower Hamilton Facility).
• - Exploring potential agreements with York1 Environmental Waste Solutions to obtain up to 10,000 tonnes of asphalt shingles for the planned Hamilton Facility.
• - Approval from the Board of Directors to explore the Mid-Atlantic region of the United States as a potential first international operation, with ongoing business development activities aimed at laying the groundwork for this expansion.

Financial Performance Overview

The financial results indicate both growth and ongoing investment in development, with notable figures for the year:

• - The total comprehensive loss for the year reached $9.33 million, up from $6.67 million in the previous year.
• - Capital expenditures significantly rose to approximately $19.26 million, indicating a robust investment in infrastructure and operational capacity.
• - As of December 31, 2024, working capital stood at $4.84 million, reflective of strategic financial management during a year of extensive development activity.

Conclusion

Northstar Clean Technologies is strategically positioned to become a leader in the recovery and reprocessing of asphalt shingles, addressing significant environmental challenges associated with landfill waste. The company’s focus on sustainable practices and innovative financing approaches underscores its commitment to advancing clean technology initiatives. As they move towards operational readiness for the Empower Calgary Facility and expand into new markets, investing stakeholders can look forward to pivotal developments in the near future.

For further insights and updates, stakeholders are invited to participate in an upcoming investor conference call on April 23, 2025. More details can be found on Northstar’s investor relations page.