Pursuant to the Funding Arrangement, CHAR Tech have entered into definitive transaction agreements to effect the Funding Arrangement including a limited partnership agreement, a general partner unanimous shareholder agreement and contribution agreements. CHAR Tech's contribution to the Thorold Project includes construction in progress and ongoing procurement activities, a use of technology licence, as well as expected and ongoing CHAR Tech engineering and project management labour hours and fees.
Phase 1 of the project, which will enable commercial biocarbon production, now has funding commitments in place for the required project-level equity. CHAR Tech and BMI are targeting an efficient buildout and rapid transition to full Phase 1 operations in Q4 2025. BMI's $8 million contribution to the Thorold Project will be disbursed in monthly tranches to ensure the Thorold Project is operating with a positive cashflow, with all contributions to be made by December 31st, 2025.
BMI brings a strategic multi-sector approach to large-scale industrial development, attracting over $200 million in direct investment to its Niagara projects that in turn have attracted over $2 billion in additional investment since 2023. Home to CHAR Tech's Thorold Project, Bioveld is an Innovation and Industrial Enterprise Hub within Niagara Ports; a partnership with the Hamilton Oshawa Port Authority (HOPA).
On May 9, 2025, BMI invested $2 million in CHAR Tech's previously announced private placement at $0.20 per share, becoming the company's second-largest shareholder with about 8 % ownership.
The BMI commitments are the latest in a series of major public and private investments supporting CHAR Tech and their Thorold Project. In 2022, the Canadian and Ontario governments supported the Thorold Project with combined funding of $12,8 million. In 2023, CHAR Tech closed a corporate level $6,6 million strategic equity investment ...
