In the United States, 12 million tons of shingles are taken off roofs and go to landfills every year. However, Northstar Clean Technologies (TSXV: ROOF) (OTCQB: ROOOF) has figured out how to turn those used shingles into new ones. In fact, the company’s clean technology solution is expected to have a significant impact on the environment by reducing landfill usage, reducing the CO2 impact of asphalt, fiber and aggregate production, and contributing to the “circular economy.” It’s another one of the top ways to trade the push for a green future. Along with Northstar Clean Technologies, other companies to keep an eye on include Owens Corning (NYSE: OC), Builders FirstSource Inc. (NYSE: BLDR), Lowe’s Companies Inc. (NYSE: LOW), and Home Depot Inc. (NYSE: HD).
Look at Northstar Clean Technologies Inc. (TSXV: ROOF) (OTCQB: ROOOF) For Example
Northstar Clean Technologies Inc. and Renewable U Energy Inc. announced today that they have entered into a binding term sheet for a strategic financing of debt and securities, including common shares in the capital of the Company and secured convertible debentures for Northstar’s proposed Phase 1 plan of building and constructing three scale-up asphalt shingle reprocessing facilities in Calgary, and, as presently intended, both the greater Toronto area and the Pacific Northwest, USA. All figures noted in this press release are in Canadian dollars unless otherwise noted.
Mr. Aidan Mills, President & CEO and Director of Northstar, stated, “Over the last several months, we evaluated detailed proposals from a wide variety of potential funding partners and considered each in considerable detail, both quantitatively and qualitatively. At the end of this extensive process, Renewable U was our most attractive financing option. We are delighted to partner with Renewable U on the strategic financing of our Phase 1 Expansion Program. We believe this financing option effectively advances our strategy of creating stakeholder value by both minimizing dilution and securing our debt funding for our first three facilities.”
“With Renewable U, we have a long-term partner that fully understands our business and we now look forward to building a long-term relationship together through the successful delivery of our leading-edge technology. With debt funding for three facilities secured, this not only gives us the ability to fully focus on the delivery of the Empower Calgary Facility, but also progress the development for the following two facilities without the significant distraction of seeking additional funders. Strategically, this partnership provides Northstar with a solid funding platform, which is exactly the outcome we hoped for from our funding process.”
Mr. Raphael Bohlmann, CEO and Director of Renewable U, stated, “In accordance with Renewable U’s corporate mandate to create economic prosperity while helping to preserve our world for future generations, we could not be more pleased to announce this funding partnership with Northstar. Northstar’s Phase 1 Expansion Program is precisely the type of strategic partnership Renewable U seeks to fund in the clean technology sector. Renewable U recognizes the value of this leading-edge technology and, combined with a solid financial model, look forward to a highly successful and rewarding partnership that will also have a positive environmental impact.”
Transaction Strategic Rationale for Northstar that Provides:
– Attractive funding option with limited equity dilution to Northstar shareholders of over $43.5 million in debt, equity and convertible debt to fully fund Northstar’s proposed Phase 1 Expansion Program in Calgary, Toronto and the Pacific Northwest, USA;
– Alignment with Renewable U as a long-term partner through the granting of a nomination right to Renewable U for the appointment of a nominee to Northstar’s Board of Directors and proforma equity ownership of potential in over 15% of Common Shares, dependant of the exercise of warrants and convertible debt.
– Efficient capital provision with no interest payable on each $12 million debt facility and no transaction fees payable;
– Engaging Calgary-based financing partner with cleantech and renewables industry experience and an extensive industry network;
– Long-term partnership and provides benefit of a three-facility structure that avoids time-consuming financing endeavours on an individual Facility basis;
– Northstar to retain full management for the partnership leading engineering, procurement, construction, operation and ongoing optimization of each Facility;
– 7% capital overhead operating fee to Northstar for management of each Facility; and
– 7% operating fee to Northstar for management of the operation.
Transaction Strategic Rationale for Renewable U that Provides:
– A project that will allow Renewable U to contribute its share in protecting the environment by creating a circular economy along with a balanced opportunity of earning positive cash flow from Northstar’s next three green energy facilities.
– A perfect fit into Renewable U’s core vision of investing and supporting projects in untapped first-to-market sectors which pave the way for wider adoption.
– An opportunity to partner with strong management and team (Northstar Clean Technologies) to deliver significant value and returns to Renewable U stakeholders.
– Renewable U to support other projects that are in the same vertical markets as Northstar looking for funding with minimal dilution options.
– A nomination right to Northstar’s Board of Directors to ensure constant communication and proper governance in relation to our partnership.
Other related developments from around the markets include:
Owens Corning reported second-quarter 2022 results. “Owens Corning delivered another outstanding quarter while advancing our enterprise strategy which accelerates our growth, strengthens our earnings power, and creates additional value for our shareholders. Our global teams continue to execute at a high level as we make strategic investments to expand our total addressable markets and enhance our market-leading positions,” said Chair and Chief Executive Officer Brian Chambers. “For the second half of the year, we remain focused on delivering strong financial results and positioning the company for long-term success.”
Builders FirstSource Inc. reported its results for the second quarter ended June 30, 2022. “During the second quarter, we remained focused on executing our strategy, accelerating value-added product sales and expanding customer solutions, resulting in another quarter of record revenue and EBITDA performance despite the dynamic environment and challenging year-over-year comparisons,” commented Dave Flitman, President and CEO of Builders FirstSource. “We increased sales by 24%, including nearly 32% organic growth in our higher margin value-added products, and increased Adjusted EBITDA by 80%. These outstanding achievements are a direct result of having strong alignment around a clear execution roadmap, the hard work and dedication of our approximately 30,000 team members and their commitment to provide outstanding service to our customers.”
Lowe’s Companies announced it will donate $2 million to support relief efforts in Florida after Hurricane Ian left devastation across the state, causing catastrophic flooding and damage. Lowe’s donation will support disaster relief partners and nonprofit Pro customers, helping organizations provide emergency shelter, food and rebuilding supplies to those affected by the storm. Lowe’s also will host relief events to distribute critical supplies.
Home Depot Inc. reported sales of $43.8 billion for the second quarter of fiscal 2022, an increase of $2.7 billion, or 6.5 percent from the second quarter of fiscal 2021. Comparable sales for the second quarter of fiscal 2022 increased 5.8 percent, and comparable sales in the U.S. increased 5.4 percent. “In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said Ted Decker, CEO and president. “Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers.”
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