All amounts in Canadian dollars, unless otherwise indicated
VANCOUVER, BC /ACCESSWIRE/September 8, 2022/ RE Royalties Ltd.. (TSXV:RE)(OTCQX:RROYF) (“RE Royalties” or the “Company”), a global leader in royalty-based renewable energy financing, has entered into a loan agreement with Switch Power Ontario Solar Operating Corporation (“ProjectCo”), a wholly-owned subsidiary of Alberta-based independent power producer Switch Power Corporation (“Switch”), for $1.3 million (the “Loan”). The loan will finance the acquisition of an operational 428 kWDC rooftop solar power generation project located in Vaughan, Ontario (the “Project”).
The loan will have an initial term of 6 months at an interest rate of 10% per annum, compounded monthly, with the option for ProjectCo to extend the loan for an additional 6 months. The Company will hold a first ranking lien on the project, including a lien on the project assets and a pledge of shares in ProjectCo. The Company will also receive a 1.0% gross revenue royalty on the Project for the remainder of the term of the Agreement, approximately 12.5 years, (the “Royalty”). If the term of the loan is extended, the fee will increase to 2.0%.
This is RE Royalties’ fourth transaction with Switch Power following the 2021 financings, which were used to acquire and supply battery energy storage systems for a portfolio of four operating energy storage projects. and ten in development located in Ontario.
SWITCH is completing commissioning activities for five BESS projects representing approximately 8 MWh of energy storage as part of its 2022 rollout. the 2023 power-up and is developing an additional 22 MWh of BESS projects as part of its growing portfolio in Ontario.
“Our company is very pleased to continue its relationship with Switch Power,” said Bernard Tan, CEO of RE Royalties. “We believe they have a great business model and a talented management team that is positioned to capitalize on the growing renewable energy market. As the industry evolves through new innovations, such as technology and on-site storage battery, we believe our company is in a unique position to provide a flexible, efficient and timely suite of royalty financing options to help our clients grow their projects accretively and maximize their environmental impact.”
“We are delighted to have the continued support of RE Royalties as we grow our portfolio of sustainable power assets,” said Trevor White, President and CEO of Switch. “Their capital continues to be flexible, timely and scalable, enabling us to execute our growth strategy, and we look forward to continuing this collaboration on future projects.”
On behalf of the Board of Directors,
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties from renewable energy installations and technologies by providing a non-dilutive financing solution to private and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently holds more than 100 royalties on solar, wind, hydroelectric, battery storage, energy efficiency and renewable natural gas projects in North America, Mexico and Europe. The Company’s business objectives are to provide shareholders with strong growth returns, strong protection of capital, a high rate of growth through reinvestment and a sustainable investment orientation.
About Switch Power Corporation
Switch Power Corporation is an independent power producer and developer headquartered in Calgary, Alberta, focused on deploying capital into long-lived infrastructure assets in underserved geographic and customer segments. served. Switch Power develops, builds, owns and operates bespoke sustainable power generation projects comprised of distributed energy resources, with inherent customer value propositions. Switch Power currently has a pipeline of 680 MW, spread across different geographic, technology and customer segments, with an estimated capital deployment of $220 million over the next 24 months.
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This press release contains forward-looking information and forward-looking statements (collectively, “forward-looking information”) about the Company and within the meaning of Canadian securities laws. Forward-looking information is generally identified by words such as: believe, expect, anticipate, intend, estimate, assume and similar expressions, or are those which by their nature refer to future events . This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company’s future prospects and anticipated events or results and may include statements regarding the Company’s financial results, future financial condition, expected cash flow growth, business strategy, budgets, expected costs, planned capital expenditures, taxes, plans, goals, industry trends and growth opportunities, including financing. The reader is invited to consult the most recent documents filed by the Company on SEDAR for a more complete discussion of all the applicable risk factors and their potential effects, copies of which can be consulted on the Company’s profile page at ‘address www.sedar.com.
THE SOURCE: RE Royalties Ltd.
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