CVW CleanTech Announces Closing of $14 million Royalty Investment with Northstar Clean Technologies
CVW CleanTech (TSXV: CVW) (OTCQX: CVWFF) has successfully closed a $14 million royalty investment with Northstar Clean Technologies. The investment involves purchasing a five-year $14 million second secured 10% convertible debenture from Northstar, replacing a previous $1.5 million Initial Convertible Debenture. Upon conversion, CVW CleanTech will receive recurring royalty payments of at least 12% of revenues from Northstar's next two commercial facilities.
The convertible debenture features a 10% annual coupon rate with semi-annual interest payments and a five-year maturity term. It is second lien secured and includes provisions for automatic conversion into royalties when Northstar's facilities reach specific volume and revenue thresholds. This transaction marks CVW CleanTech's first royalty investment, aiming to create value and accelerate growth for shareholders through exposure to additional clean technologies.
CVW CleanTech (TSXV: CVW) (OTCQX: CVWFF) ha chiuso con successo un investimento in royalty da 14 milioni di dollari con Northstar Clean Technologies. L'investimento prevede l'acquisto di un obbligazione convertibile garantita di secondo grado da 14 milioni di dollari al 10% da Northstar, sostituendo una precedente obbligazione convertibile iniziale di 1,5 milioni di dollari. Al momento della conversione, CVW CleanTech riceverà pagamenti di royalty ricorrenti di almeno il 12% delle entrate dalle due prossime strutture commerciali di Northstar.
L'obbligazione convertibile presenta un tasso d'interesse annuale del 10% con pagamenti di interessi semestrali e un termine di scadenza di cinque anni. È garantita da un secondo privilegio e include clausole per la conversione automatica in royalty quando le strutture di Northstar raggiungono specifici volumi e soglie di reddito. Questa transazione segna il primo investimento in royalty per CVW CleanTech, con l'obiettivo di creare valore e accelerare la crescita per gli azionisti attraverso l'esposizione a tecnologie pulite aggiuntive.
CVW CleanTech (TSXV: CVW) (OTCQX: CVWFF) ha cerrado con éxito una inversión en regalías de 14 millones de dólares con Northstar Clean Technologies. La inversión implica la compra de un bono convertible garantizado de segundo nivel de 14 millones de dólares al 10% de Northstar, reemplazando un bono convertible inicial de 1,5 millones de dólares. Al momento de la conversión, CVW CleanTech recibirá pagos de regalías recurrentes de al menos el 12% de los ingresos de las dos próximas instalaciones comerciales de Northstar.
El bono convertible cuenta con un tasa de cupón anual del 10% con pagos de intereses semestrales y un plazo de vencimiento de cinco años. Está garantizado con un segundo gravamen e incluye disposiciones para la conversión automática en regalías cuando las instalaciones de Northstar alcancen umbrales específicos de volumen y ingresos. Esta transacción marca la primera inversión en regalías de CVW CleanTech, con el objetivo de crear valor y acelerar el crecimiento para los accionistas mediante la exposición a tecnologías limpias adicionales.
CVW 클린테크 (TSXV: CVW) (OTCQX: CVWFF)는 노스스타 클린 테크놀로지스와 함께 1400만 달러의 로열티 투자를 성공적으로 마감했습니다. 이 투자는 노스스타로부터 10% 전환 가능 채권 1400만 달러를 구매하는 것으로 구성되며, 이전의 150만 달러 초기 전환 가능 채권을 대체합니다. 전환 시, CVW 클린테크는 노스스타의 두 개 상업 시설에서 발생하는 수익의 최소 12%에 해당하는 지속적인 로열티 지급을 받게 됩니다.
전환 가능 채권은 연간 10% 이자율로 반기 이자 지급과 5년 만기 조건이 있습니다. 이는 두 번째 담보로 확보되어 있으며, 노스스타 시설이 특정한 생산량 및 수익 임계값에 도달할 때 로열티로 자동 전환되는 조항이 포함되어 있습니다. 이 거래는 CVW 클린테크의 첫 번째 로열티 투자이며, 추가 클린 기술에 대한 노출을 통해 주주에게 가치를 창출하고 성장을 가속화하는 것을 목표로 합니다.
CVW CleanTech (TSXV: CVW) (OTCQX: CVWFF) a réussi à conclure un investissement en redevances de 14 millions de dollars avec Northstar Clean Technologies. Cet investissement consiste à acquérir une obligation convertible de 14 millions de dollars à 10% de Northstar, remplaçant une précédente obligation convertible initiale de 1,5 million de dollars. À la conversion, CVW CleanTech recevra des paiements de redevances récurrents d'au moins 12% des revenus des deux prochaines installations commerciales de Northstar.
L'obligation convertible présente un taux d'intérêt annuel de 10%, avec des paiements d'intérêts semestriels et un terme d'échéance de cinq ans. Elle est sécurisée par un deuxième privilège et comprend des dispositions pour la conversion automatique en redevances lorsque les installations de Northstar atteignent des seuils de volume et de revenus spécifiques. Cette transaction marque le premier investissement en redevances de CVW CleanTech, visant à créer de la valeur et à accélérer la croissance pour les actionnaires grâce à l'accès à des technologies propres supplémentaires.
CVW CleanTech (TSXV: CVW) (OTCQX: CVWFF) hat erfolgreich eine Investition in Höhe von 14 Millionen US-Dollar in Royalties mit Northstar Clean Technologies abgeschlossen. Die Investition beinhaltet den Kauf einer 10% wandelbaren Anleihe mit wiederbesicherten 14 Millionen US-Dollar von Northstar, die eine vorherige wandelbare Anleihe in Höhe von 1,5 Millionen US-Dollar ersetzt. Bei der Umwandlung erhält CVW CleanTech wiederkehrende Royalty-Zahlungen von mindestens 12% der Einnahmen aus den nächsten beiden gewerblichen Anlagen von Northstar.
Die wandelbare Anleihe weist eine 10% jährliche Zinsrate mit halbjährlichen Zinszahlungen und einer Laufzeit von fünf Jahren auf. Sie ist durch einen zweiten Pfand gesichert und enthält Bestimmungen zur automatischen Umwandlung in Royalties, wenn die Anlagen von Northstar bestimmte Volumen- und Umsatzschwellen erreichen. Diese Transaktion ist die erste Royalty-Investition von CVW CleanTech, die darauf abzielt, Wert zu schaffen und das Wachstum für die Aktionäre durch den Zugang zu zusätzlichen sauberen Technologien zu beschleunigen.
- Secured a $14 million royalty investment with Northstar Clean Technologies
- Entitled to receive recurring royalty payments of at least 12% of revenues from Northstar's next two commercial facilities
- Convertible debenture carries a 10% annual coupon rate with semi-annual interest payments
- Second lien secured investment with protections via intercreditor agreement
- Option to capitalize coupon payments for the first three years
- Investment is dependent on Northstar's ability to reach agreed-upon volume and revenue thresholds
- Risk of not converting to royalties if thresholds are not met within three years
Calgary, Alberta--(Newsfile Corp. - September 16, 2024) - CVW CleanTech (TSXV: CVW) (OTCQX: CVWFF) ("CVW CleanTech" or the "Company") is pleased to confirm the closing of its previously announced
"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
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
Investor and Media Inquiries
Joshua Grant
joshua.grant@cvwcleantech.com
403-460-8135
Disclosure Regarding Forward-Looking Information
This news release contains forward-looking statements and information within the meaning of applicable Canadian securities laws (collectively, "forward-looking information") that reflect the current expectations of management about the future results, performance, achievements, prospects, or opportunities for CVW CleanTech (the "Company").
Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. The forward-looking statements may include statements regarding the intention to complete the Offering and the expected use of proceeds of the Offering, the issuance of the Common Shares, the expected closing dates of the Offering and the Transaction and the Company's objectives, goals or future plans, the potential for the Transaction and the Company's royalty investment strategy to create value, expected deployment and results of deployment of CVW™ technologies, the adoption of CVW™ technologies by industry participants, estimated recoveries, environmental impacts, benefits and financial results from the implementation and adoption of CVW™ technologies, the prospective terms of the involvement of joint venture and the of the proposed joint venture and all other statements regarding the benefits and implications of the implementation of our technologies and the joint venture or other statements that are not statements of fact. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company may differ materially from those reflected in forward-looking statements due to a variety of risks, uncertainties and other factors. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include: binding agreements in respect of the joint venture may never be entered into or on the terms set forth in the non-binding agreement; adoption or use of the Company's technologies by industry participant; the ability to advance the technologies of the Company on a timely basis or at all; reliance on estimates prepared by third parties; current estimates and predictions being based on certain assumptions about the industry in which the Company operates and macroeconomic conditions generally; uncertainties in the timing and receipt of regulatory and exchange approvals; uncertainties involved in disputes and litigation; fluctuations in interest rates, commodity prices, currency exchange rates, and other financial conditions, and the resultant effect on viability of investments; changes in the availability, and cost, of technical labour required for our business; price escalation and/ or inflationary pressures affecting the cost of equipment and material required to commercialize our projects; the uncertainty of estimates of capital and operating costs; the need to obtain additional financing and uncertainty as to the availability and terms of future financing; the impact on the Company of increasing inflation; and other risks and uncertainties disclosed in other information released by the Company from time to time and filed with the appropriate regulatory agencies.
All forward looking statements are based on the Company's beliefs and assumptions which are based on information available at the time these assumptions are made, and is necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. The Company has made the following assumptions in relation to the forward-looking statements in this press release: the successful conclusion of the Offering on the terms as announced; the Transaction and the Company's royalty investment strategy will be successfully implemented and will create value for the Company,; that there will be adoption by industry participants of the Company's technologies; the expected environmental and economic benefits to be achieved from CVW™ technologies; the ability of the Company to successfully access various government funding programs; reliance on economic estimations prepared and assumptions made by third parties; that the Company will continue to be able to protect its intellectual property and proprietary technologies; assumptions as to various market and commercial opportunities for the Company and its technologies; and the ability of the Company to continue to develop and commercialize its technologies. The forward-looking statements contained herein are as of the date set out above and are subject to change after this date, and the Company assumes no obligation to publicly update or revise the statements to reflect new events or circumstances, except as may be required pursuant to applicable laws.
Although management believes that the expectations represented by such forward-looking information or statements are reasonable, there is significant risk that the forward-looking information or statements may not be achieved, and the underlying assumptions thereto will not prove to be accurate. Actual results or events could differ materially from the plans, intentions and expectations expressed or implied in any forward-looking information or statements, including the underlying assumptions thereto, as a result of numerous risks, uncertainties and factors including: failure to complete the Offering on the terms as announced or at all; failure to derive benefits form the Transaction and the Company's royalty investment strategy; failure to receive regulatory approvals required for the transactions described in this news release; failure to enter into agreements with industry participants; the possibility that opportunities will arise that require more cash than the Company has or can reasonably obtain; dependence on key personnel; dependence on corporate collaborations; potential delays; uncertainties related to early stage of technology and product development; uncertainties as to fluctuation of the stock market; uncertainties as to future expense levels and the possibility of unanticipated costs or expenses or cost overruns; and other risks and uncertainties which may not be described herein.
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FAQ
What is the value of CVW CleanTech's (CVWFF) royalty investment with Northstar Clean Technologies?
What percentage of royalty payments will CVW CleanTech (CVWFF) receive from Northstar's facilities?
What are the key terms of the convertible debenture issued by Northstar to CVW CleanTech (CVWFF)?
What happens if Northstar doesn't meet the agreed-upon thresholds for CVW CleanTech's (CVWFF) investment?
