Northstar Adds to Working Capital Reserves via Several Initiatives

Executive Summary

• Northstar Clean Technologies closed a $1 M first‑tranche non‑brokered unit financing, issuing debentures with 9% coupon and detachable warrants.
• The company received an ERA Milestone 3 payment of $735 k for achieving 80 t/d capacity at its Empower Calgary facility; the final Milestone 4 grant is expected to total ~$1.2 M.
• Proceeds will fund ramp‑up of operations at Empower Calgary and general corporate purposes, strengthening working capital heading into 2026.

Key Details

• Financing Structure: 200 units each consisting of a $5,000 face‑value debenture plus 1,250 detachable non‑transferable whole warrants.
• Coupon: 9.0% payable semi‑annually in cash or shares (share payment at ten‑day VWAP preceding interest date).
• Total Proceeds: $1,000,000 (200 units).
• Warrant Terms: Exercise price $0.395 per warrant; term of 36 months from closing.
• Security: Unsecured debentures; statutory hold period of four months and one day expiring 2026‑04‑06.
• Subscription: Fully subscribed by arm’s‑length third party, 1010770 B.C. Ltd.

• Conditional TSXV Approval: Financing received conditional approval; closing subject to final acceptance.

• ERA Milestone 3 Payment: $735,000 received, earmarked exclusively for Empower Calgary operations.

• Operational Achievement: Reached 80 tonnes per day processing capacity at Empower Calgary.

• Remaining Grant Funding: Final Milestone 4 of the $7.1 M ERA grant expected to provide approximately $1.2 M (including prior holdbacks).

• Use of Proceeds: Capital for ramp‑up of Empower Calgary facility and general corporate purposes, aimed at achieving operational break‑even.

Notable Quotes

“The combination of these various initiatives greatly assists with effectively conducting operations at Calgary Empower and at the corporate level,” – Greg Phaneuf, VP Corporate Development & CFO.