Northstar Clean Technologies Inc. announced a non-brokered private placement of 450 debenture units at a price of CAD 5,000 per debenture unit for the gross proceeds of CAD 2,250,000 on June 27, 2024. Each convertible debenture unit is comprised of one 12.5% unsecured convertible debenture in the principal amount of CAD 5,000 convertible into common shares of the company and 20,000 common share purchase warrants. Each Warrant entitles the holder thereof to purchase one additional common share at a price of CAD 0.35 per Warrant Share exercisable for a period of 36 months.

The Principal Amount may be converted, for no additional consideration, into Conversion Shares at the option of the holder of Convertible Debenture at any time after the closing date of the Strategic Investment at a conversion price of CAD 0.25 per conversion share. The Convertible Debentures bear interest (?Interest?) at a rate of 12.5% per annum, payable in cash, semi-annually in arrears and mature three years from the date of issue. As a part of the transaction, the company paid finders fees in the aggregate amount of CAD 180,000 in cash and issued 720,000 non-transferable broker warrants.

All securities issued in connection with the Strategic Investment are subject to a four month and a day statutory hold period in accordance with applicable securities legislation. While the company has received conditional approval of the Strategic Investment from the TSXV, closing remains subject to final acceptance. The transaction included participation from from two Calgary-based strategic investors.

One investor will remain anonymous, and one investor is the Chiu Family, an influential Calgary-based family and owner of Trico Homes, a leading homebuilder in Calgary, Alberta.