CVW CleanTech Announces Closing of $14 million Royalty Investment with Northstar Clean Technologies

Press Release

CALGARY, AB – CVW CleanTech (TSXV: CVW) (OTCQX: CVWFF) (“CVW CleanTech” or the “Company”) is pleased to confirm the closing of its previously announced $14 million royalty investment with Northstar Clean Technologies Inc. (“Northstar”). As described in the Company’s press release dated August 7, 2024, the Company has purchased a five-year $14 million second secured 10% convertible debenture of Northstar (the “Convertible Debenture“), which replaces the $1.5 million Initial Convertible Debenture which was previously purchased. Upon conversion of the Convertible Debenture, and pursuant to the terms of the royalty agreement, CVW CleanTech is entitled to receive recurring royalty payments based on revenues at Northstar’s next two commercial facilities, which will be no less than 12% of such revenues (the “Transaction“).

“We are pleased to have successfully closed our first royalty transaction and look forward to a long-term partnership with Northstar Clean Technologies,” said Akshay Dubey, CEO of CVW CleanTech. “We are excited about the opportunity to create value and accelerate growth for CVW CleanTech shareholders by obtaining exposure to additional clean technologies through royalty structures.”

The Convertible Debenture carries a 10% annual coupon rate, with semi-annual interest payments, a five-year term to maturity, and is second lien secured with protections afforded via an intercreditor agreement and a security interest in Northstar’s present and after-acquired property. Northstar has the option to capitalize the coupon payments for the first three years from the closing of the Transaction. The Convertible Debenture will automatically convert in two tranches into royalties once either of the next two facilities of Northstar reach agreed-upon volume and revenue thresholds.

In the event that Northstar does not reach agreed-upon volume and revenue thresholds within three years from the closing of the Transaction for their next two commercial facilities, the Company may, at its sole discretion, remain invested in the Convertible Debenture or convert the Convertible Debenture into a royalty on Northstar’s facility in Calgary, Alberta.

About CVW CleanTech

CVW CleanTech‘s vision is to invest in innovative technologies which provide returns linked to commodities and which operate in a sustainable manner that helps accelerate the world’s transition to net zero. CVW CleanTech is in the process of building a portfolio of royalty-based cash flow streams by partnering with clean technology innovators in the commodity space. CVW CleanTech is the 100% owner of its proprietary technology, Creating Value from Waste™ (“CVW™”), which is designed to recover bitumen, solvents, critical minerals, and water from oil sands froth treatment tailings, which would reduce tailings pond fugitive methane emissions, volatile organic compounds, and enhance tailings management.

Investor and Media Inquiries
Joshua Grant
joshua.grant@cvwcleantech.com
403-460-8135

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