Press Release: Northstar Reports First Quarter 2025 Financial and Operating Results

Dow Jones

05-30

CALGARY, AB, May 30, 2025 /CNW/ - 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.

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/CONTACT:

Northstar Investor Relations Inquiries: Kin Communications, Phone: 604 684 6730, Email: ROOF@kincommunications.com

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