Northstar Clean Technologies secures $1.8M in accelerated funding

VANCOUVER and CALGARY — Northstar Clean Technologies has closed a non-brokered private placement of US$1.8 million in three-year unsecured convertible debentures, part of the previously announced US$10 million strategic investment from Allmine Paving, a subsidiary of Tamko Building Products.

The Memorandum of Understanding (MoU) exclusivity period between Northstar and Tamko has been extended from three years to four years, with the addition of a fourth facility to the Northstar development plan in the United States.

Tamko’s investment will be in two phases. In the first phase, it’ll invest US$6.4 million in preferred shares and in the second phase, it’ll invest US$3.6 million in two tranches of convertible debentures, each totalling US$1.8 million.

The MoU extension grants Tamko exclusivity for an additional year and includes the option for a fourth US facility.

Aidan Mills, president and CEO of Northstar, acknowledges Tamko’s ongoing support and confidence in the company’s progress.

“Tamko’s support…demonstrates Tamko’s ongoing and unwavering support for Northstar. We couldn’t have asked for a better partner as we continue to strive towards our goal of creating a circular economy for discard and waste asphalt shingles,” Mills said.

Jeffrey Beyer, vice president and COO of Tamko said, “Northstar has made tremendous progress since July 2023, moving forward to achieve its milestones as the company nears commercialization of its innovative technology.”

“Our interest in the acceleration of this debenture was based on Northstar’s delivery of ERA’s Milestone 1, the completion of detailed engineering design for the Empower Calgary Facility, our mutual agreement on the first US plant location, and the extension of our own US market entry of a low carbon asphalt product through extended exclusivity and a fourth facility,” Beyer added.