February 27, 2023, Vancouver, BC - RE Royalties Ltd. (TSX.V: RE) (OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing announces, further to its news release dated January 27, 2023 regarding the non-brokered private placement offering (the “Private Placement”) of Series 3 secured green bonds of the Company (the "Green Bonds"), that the Company is seeking to increase the maximum allocation of Canadian dollar denominated Green Bonds from C$8,000,000 to C$10,000,000 (the "Upsize"). The maximum amount the Company is seeking to raise for the U.S. dollar denominated Green Bonds remains the same at US$5,000,000.
In conjunction with the Company's announcement on December 9, 2022 regarding the public offering of Green Bonds (the "Public Offering", and together with the Private Placement, the “Offering”), there is no change to the maximum proceeds of up to C$23,000,000 that the Company intends to raise under the Offering. As previously announced by the Company on February 6, 2023 and January 30, 2023, the Company has issued an aggregate of 11,714 Canadian dollar denominated Green Bonds, with a principal amount of C$1,000 per Green Bond for aggregate gross proceeds of C$11,714,000, and 272 United States dollar denominated Green Bonds, with a principal amount of US$1,000 per Green Bond for aggregate gross proceeds of US$272,000.
The Green Bonds will have a maturity date of January 30, 2028 and bear interest at a rate of 9% per annum, payable quarterly, and will be senior obligations of the Company secured against the Company's portfolio of royalty and loan investments.
In connection with the closing of the Private Placement, the Company has agreed to pay certain parties a corporate advisory fee consisting of a to be determined amount of cash and warrants of the Company (the "Warrants"). Each Warrant will be exercisable into one common share of the Company at an exercise price of $0.75 per common share for a period of 36 months from the date of issuance. All securities issued under the Private Placement will be subject to a statutory hold period expiring four months from the date of issuance in accordance with applicable Canadian securities laws.
Net proceeds from the Offering will be utilized to acquire revenue-based royalties and/or provide loans to privately held and publicly traded renewable energy companies. The Company has prepared a Green Bond Framework that is aligned with the International Capital Market Association Green Bond Principles (2018), which framework is available on the Company's website, here.
For further details regarding the Offering, please see the Company's news release dated December 9, 2022 and January 27, 2023.
This news release shall not constitute an offer to sell or the solicitation of any offers to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or to or for the account or benefit of any U.S. persons or any persons in the United States.
On Behalf of the Board of Directors,
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions to privately held 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 owns over 100 royalties on solar, wind, hydro, 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 a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
For further information, please contact:
Investor and Media Contact:
RE Royalties Ltd.
Talia Beckett, VP of Communications and Sustainability
T: (778) 374‐2000
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate 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 outlook and anticipated events or results and may include statements regarding the Company's financial results, the Upsize, the closing of the Offering, use of proceeds from the Offering, the terms and conditions of the Green Bonds, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities including financing. The reader is referred to the Company's most recent filings on SEDAR for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com.