Northstar completes closing of debenture financing

Executive Summary

• Northstar Clean Technologies Inc. has completed the second closing of unsecured debentures, raising $1.0 million in gross proceeds.
• The financing consists of 200 units, each comprising a $5,000 face value debenture and 2,500 detachable non-transferable warrants.
• Proceeds are designated for ramping up operations at the Empower Calgary facility and for general corporate purposes.

Key Details

• Total Gross Proceeds: $1,000,000.
• Unit Composition: Each unit consists of a $5,000 face value debenture and 2,500 detachable non-transferable whole warrants (Total: 200 units).
• Coupon Rate: 9.0% per annum, paid semi-annually.
• Interest Payment Options: Cash or issuance of common shares.
• Share Issuance Price for Interest: Deemed price equal to the 10-day volume-weighted average price (VWAP) of common shares on the TSX Venture Exchange immediately preceding the interest payment date.
• Warrant Terms:
  • Exercise Price: $0.35 per warrant.
  • Term: 36 months from closing.
  • Type: Detachable, non-transferable, whole warrants.
• Security: Unsecured.
• Subscribers: Entirely subscribed by arm's-length parties, all of whom are existing investors.
• Finder’s Fee: Leede Financial Inc. received a cash commission of $45,000.
• Use of Proceeds: Ramp up operations at the Empower Environmental Solutions Calgary facility and general corporate purposes.
• Regulatory Status: Conditional approval received from TSX Venture; closing subject to final acceptance.
• Hold Period: Four-month-and-a-day statutory hold period expiring May 24, 2026.
• Operational Update: CEO Aidan Mills confirmed an operational update regarding the Empower Calgary facility ramp-up will be provided in late February.

Notable Quotes

• "This financing reflects our continued commitment to minimizing the dilution from our funding strategies as we advance Northstar's commercial objectives and support the continued ramp-up of operations at Empower Calgary," said Aidan Mills, chief executive officer of Northstar.