Vancouver, British Columbia – Northstar Clean Technologies Inc. (TSXV: ROOF, OTCQB: ROOF) (‘North Star‘ or the ‘Company’) is pleased to announce the results of its economic analysis prepared by internal management for its planned expanded capacity asphalt shingle reprocessing facility at Calgary, AB (‘Calgary Empower Facility’). As part of the recently released Independent Front End Engineering Design (“FEED”) study prepared by BBA Engineering Ltd. which provided a capital estimate at the pre-feasibility level for the planned installation of Calgary Empower, the Company has completed a detailed internal financial analysis of the planned installation of Calgary Empower. The company sensitized a wide range of operational and financial assumptions to ultimately arrive at a conservative base case, which is provided here, as well as identifying certain variables to provide upside potential. The results and the main assumptions are presented below. All currencies quoted in this press release are in Canadian dollars.
Sir. Aidan MillsChairman and Chief Executive Officer and Director of North Star said, “For a sustainable, environmental, social and governance-focused business to succeed, we believe it needs the following: Step 1) technology that works; Stage 2) the ability to scale this technology; and Step 3) a clear and cost-effective marketing strategy. Our regular production of specification products at our Empower pilot facility in Delta, BC demonstrates Stage 1 and we believe that our announcement of the successful completion of our FEED study signifies that we are well on our way to Stage 2. Our detailed analysis of the potential financial returns of our facilities, described below, hopes to convey stakeholders that step 3 is feasible.’
Mr Mills continued, “While these results are exciting for our company, we believe a clear path to further upside may be available. Our internal financial analysis underpins the triple potential of our technology, creating potential profits while benefiting our stakeholders, including shareholders, employees and the communities where we operate, and creating a positive impact on the environment. In the City of Calgarywe have the ability to not only divert approximately 30,000 to 50,000 tonnes of asphalt shingles per installation from the municipal landfill, but also potentially deliver an approximate annual EBITDA(2) of $4 million. Not only can we help provide large municipalities across Canada and United States with a unique circular economy and a modular solution for the reprocessing of single-use asphalt shingles, but we hope to increase shareholder value and provide additional benefits to our various stakeholders.
On North Star
Northstar Clean Technologies Inc. is a Vancouvera clean technology company based on the sustainable recovery and reprocessing of asphalt shingles. North Star has developed a proprietary design process to reclaim discarded asphalt shingles, otherwise destined for already overcrowded landfills, and extract the liquid asphalt, aggregates and fibers for use in new HMA, products construction and other industrial applications. Focused on the circular economy, North Star plans to reprocess used or defective asphalt shingle waste into its three main components for reuse/resale in the circular economy. As an emerging innovator in sustainable transformation, Northstar mission is to be the leader in the recovery and reprocessing of asphalt shingles in North Americaextracting recovered components from asphalt shingles that would otherwise be sent to landfill.
For more information on North Starplease visit www.northstarcleantech.com.
Phone: 604 684 6730
Email: [email protected]
Caution regarding forward-looking information
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. The TSXV has neither approved nor disapproved of the contents of this press release.
This press release contains forward-looking information within the meaning of applicable securities laws, 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”, “should”, “intend”, “plan”, “anticipate”, “believe”, “estimate ‘, ‘wait’ or similar expressions. Forward-looking statements in this press release include, but are not limited to, statements regarding: the steps necessary for a successful environmental, social and governance-focused business; any anticipated increase in economic analysis prepared by the Company’s management and, in connection therewith, the Company’s ability to increase shareholder value and provide additional benefits to our various stakeholders; the Company’s various pricing assumptions, treatment of tonnage quotes, hours of operation, tax incentives or carbon credits, and other operating assumptions set forth under “Management’s View of the potential economic benefits of the project”, as well as any other general statements regarding the perceived benefits of the Calgary Empower facility and Northstar Technology. These statements are subject to risks and uncertainties that could cause actual results, performance or developments to differ materially from those contained in the statements, including risks relating to factors beyond the control of the Company as well as risks and uncertainties which are described in more detail. under the heading “Risk Factors” in the Company’s final prospectus dated June 18, 2021 and in the Company’s annual and quarterly MD&As and other filings with Canadian securities regulators under the Company’s profile on SEDAR. The new strain of coronavirus, COVID-19, also poses new risks that are currently indescribable and immeasurable. There can be no assurance that any of the events anticipated by the forward-looking statements will occur or, if they occur, what benefits the Company will derive therefrom. The Company undertakes no obligation to update such forward-looking information, whether as a result 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 differ materially from those described herein as anticipated, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be those anticipated, estimated or expected and these changes could be material. The Company does not intend and undertakes no obligation to update any forward-looking statements, except as otherwise required by applicable law.
This press release also contains forward-looking financial information and financial outlook information (collectively, “FOFI”) on the company’s expected revenues, cash flow, gross margins and EBITDA(2) after the start of the operations at its Empower Calgary facility, all are subject to the same assumptions, risk factors, limitations and qualifications set forth in the paragraphs above. The actual financial results of the Company may therefore differ from the amounts indicated herein and this variation could be material. North Star and its management believe that the FOFI ratings presented herein have been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, since this information is subjective and subject to numerous risks, it should not be considered as necessarily indicative of future results. Except as required by applicable securities laws, the Company assumes no obligation to update this FOFI. The FOFI contained in this press release was published on the date hereof and has been provided for the purpose of providing further information on Northstar anticipated future business activities following the start of operations at its Empower facility in Calgary. Readers are cautioned that the FOFI contained in this press release should not be used for any purpose other than that for which it is disclosed herein.