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Northstar Clean Technologies Inc. (“Northstar” or “the Company”) is pleased to confirm the closing of a $14M royalty transaction (the “Transaction”) with CVW CleanTech Inc. (“CVW CleanTech”). The Transaction funded as a secured convertible debenture, convertible into revenue royalties on two Northstar facilities (the “Royalty Debenture”).
The Royalty Debenture is a unique and innovative funding structure allowing Northstar to receive funding today at the corporate level in exchange for royalties on two future asphalt shingle reprocessing facilities that the Company plans on building in the coming years. Upon the achievement of certain production milestones, the Royalty Debenture will convert the full principal of the Royalty Debenture into two, equal royalty interests in Northstar’s next two planned asphalt shingle reprocessing facilities.
Proceeds will support working capital requirements and other general corporate purposes, expected to include business development to support future site selection and facility build-out.
Fort Capital Securities Ltd. acted as financial advisor to Northstar on the Transaction.