Northstar Reports First Quarter 2025 Financial and Operating Results
CALGARY, AB, May 30, 2025 /PRNewswire/ - Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) ("Northstar" or the "Company") is pleased to announce our financial and operating results for the three-month period ended March 31, 2025. Selected financial and operational information is set out below and should be read in conjunction with the Company's March 31, 2025 Condensed Interim Financial Statements and the related Management's Discussion and Analysis, which are available for review at www.sedarplus.ca or the Company's website at www.northstarcleantech.com.
First Quarter 2025 Financial and Operational Highlights
The first quarter of 2025 witnessed a number of significant developments and achievements, together with a few key funding achievements subsequent to the quarter-end, namely:
-- Operational
-- The Company successfully completed construction efforts of the
Empower Calgary Facility; and
-- Following the successful completion of construction, the Company
began the important task of commissioning the Empower Calgary
Facility. The Company's asphalt shingle reprocessing facilities are
broadly broken into two main phases: (1) feedstock preparation and
mechanical separation of aggregate, and (2) hydrocarbon treatment
and processing. The Company successfully completed all commissioning
efforts of the first phase and now continues to commission the
second phase. Once those efforts are completed, the Empower Calgary
Facility will be turned over to operations, currently scheduled for
mid-year 2025.
-- Plant Expansions - significant steps continued towards expansion efforts
of the Company's business model, including:
-- Empower Hamilton Facility - the Company executed a letter of intent
with YORK1 Environmental Waste Solutions Ltd. to supply up to 10,000
tonnes of waste roofing shingles with an understanding to increase
supply volumes through time. Execution of supply agreements
represents a critical step in establishing a working facility. This
first supply agreement followed closely on the announcement in late
2024 of the Company signing a letter of intent with the Great Lakes
Port Management Inc., a subsidiary of the Hamilton-Oshawa Port
Authority, for a long-term lease for an industrial zoned property
located in Hamilton, Ontario as the site for the Company's planned
facility in southwestern Ontario;
-- US Expansion - the Company continues to expend time and energy in
the selection of a suitable site for our inaugural reprocessing
facility in the United States. As has been previously communicated
by the Company, selection criteria have focused on areas that
represent an operational fit with the Company's strategic financial
partner, TAMKO Building Products Inc.; and
-- Empower Delta Facility - during the quarter, the Company
successfully secured a fifteen-year lease at its existing Delta,
British Columbia location. This paves the way to retro-fit the
existing pilot facility at this location to a full-scale commercial
facility. The site currently holds all necessary regulatory
approvals and permits for light industrial operations, offering a
future expansion opportunity with reduced timelines and costs
associated with permitting and site development.
-- Liquidity - commensurate with execution of the business plan, the
Company successfully received proceeds under previously negotiated
funding agreements, consisting of:
-- $3.9 million from Emissions Reduction Alberta, subsequent to the
quarter-end, upon completion of Milestone 2, which includes among
other items, all major processing units installed and electrified
and substantial completion as defined in the Builder's Lien Act;
-- $617 thousand final draw subsequent to the quarter-end under the
Business Development Bank $8.75 million non-revolving senior secured
project loan facility; and
-- $248 thousand received during the quarter from the exercise of
existing stock options and warrants. Year-to-date, the Company has
received $392 thousand from the exercise of stock options and
warrants. Outstanding common shares as of May 29, 2025 totaled
137,051,985.
Financial Results
(CAD$, except per share amounts and common shares outstanding)
Three Months Ended Mar. 31
FINANCIAL RESULTS 2025 2024
Loss and comprehensive loss 2,949,917 1,581,578
Per share - basic and diluted 0.02 0.01
Net cash flow used in operating activities 2,338,652 1,201,168
Per share - basic and diluted 0.02 0.01
Capital expenditures
Capital expenditures 4,080,489 1,848,278
Liquidity & Capitalization
Working capital (deficit) surplus (426,551) 3,440,770
7.95% senior secured non-revolving loan (1) 8,132,302
Convertible debentures - principal amount (2) 9,505,000 5,700,000
Royalty debenture (3) 14,773,500
Common shares outstanding
Weighted average - basic and diluted 132,942,452 126,710,381
Outstanding, end of period 134,306,216 126,710,381
(1) As at March 31, 2025, the Company had drawn $8,132,302 from the BDC Financing, with $617,698 remaining undrawn. See Note 7 in the Company's Condensed Interim Consolidated Financial Statements as at March 31, 2025.
(2) Since December 2022, the Company has entered into various financing arrangements through the issuance of convertible debentures in tranches, raising a total of $10,405,000 at interest rates varying between 10% and 12.5%. As
at March 31, 2025, principal amounts totalling $9,505,000 remain outstanding, reflecting $900,000 of proceeds received in exchange for conversion into common shares. See Note 8 in the Company's Condensed Interim Consolidated
Financial Statements as at March 31, 2025.
(3) On September 13, 2024 the Company completed an agreement with CVW CleanTech Inc. ("CVW") pursuant to which CVW provided the Company with $14,000,000 in funding through a five-year 10.0% second secured convertible debenture
(the "Royalty Debenture") convertible into revenue royalties on two future facilities. Balance includes the increase in fair value since inception. See Note 9 in the Company's Condensed Interim Consolidated Financial
Statements as at March 31, 2025.
About Northstar
Northstar is a Canadian waste to value technology company focused on the sustainable recovery and reprocessing of asphalt shingles. Northstar developed and owns a proprietary design process for taking discarded asphalt shingles, otherwise destined for already over-crowded landfills, and extracts the liquid asphalt for use in new hot mix asphalt shingle manufacturing and asphalt flat roof systems while also extracting aggregate and fiber for use in construction products and other industrial applications. Focused on the circular economy, Northstar plans to reprocess used or defective asphalt shingle waste back into its three primary components for reuse/resale with its first commercial scale up facility in Calgary, Alberta. As an emerging innovator in sustainable processing, Northstar's mission aims at leading the recovery and reprocessing of asphalt shingles in North America that would otherwise be sent to landfill addressing numerous stakeholder objectives.
U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on https://www.otcmarkets.com/.
For further information about Northstar, please visit www.northstarcleantech.com.
On Behalf of the Board of Directors,
Aidan Mills
President & CEO, Director
Cautionary Statement on Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
This press release may contain forward-looking information within the meaning of applicable securities legislation, which forward-looking information reflects the Company's current expectations regarding future events. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "aim", "objective" or similar expressions. Forward-looking statements in this press release include statements concerning: (i) Northstar's plans to reprocess used shingles into their component parts in the inaugural commercial facility in Calgary; (ii) operations to commence mid-year 2025; (iii) the ability of the Company to expand into other regions, namely Hamilton, Ontario and the United States; and (iv) Northstar's ability to become a leader in the recovery and reprocessing of asphalt shingles in North America. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including: risks related to factors beyond the control of the Company; inability of the Company to execute on its business plans; the Company may require additional financing which may not be obtainable or on favourable terms; economic uncertainty; and the risks and uncertainties which are more fully described under the heading "Risk Factors" in the Company's annual and quarterly management's discussion and analysis and other filings with the Canadian securities regulatory authorities under the Company's profile on SEDAR+. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company does not undertake any obligation to update such forward-looking information whether because of new information, future events or otherwise, except as expressly required by applicable law.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, expected or aimed. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.
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SOURCE Northstar Clean Technologies Inc.
