RE Royalties Enters into CAD $1.3 Million Loan Agreement with Switch Power for Ontario Rooftop Solar Generation Project
All amounts in Canadian dollars unless otherwise stated
September 8, 2022, Vancouver, BC – RE Royalties Ltd. (TSX.V: RE) (OTCQX: RROYF) (“RE Royalties” or the “Company”), a global leader in renewable energy royalty-based 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 generation project located in Vaughan, Ontario (the “Project”).
The Loan will have an initial term of 6 months at a 10% interest rate per annum, compounded monthly, with the option for ProjectCo to extend the Loan by an additional 6 months. The Company will have first-ranking security interest over the Project including a lien over Project assets, and a pledge of shares in ProjectCo. The Company will also receive a gross revenue royalty of 1.0% on the Project for the remainder of the contract term, or approximately 12.5 years, (the “Royalty”). If the Loan term is extended, the Royalty will increase to 2.0%.
This is RE Royalties’ fourth transaction with Switch Power following the 2021 financings, which were used to acquire and procure battery energy storage systems for a portfolio of four operating and ten development energy storage projects located in Ontario.
SWITCH is completing commissioning activities for five BESS projects which represent approximately 8 MWh of energy storage as part of its 2022 deployment. In addition, it has 19 MWh of BESS projects slated to enter procurement and construction for 2023 energization and is developing a further 22 MWh of BESS projects as part of its growing Ontario portfolio.
“Our company is very pleased to continue our 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 battery storage, we believe our company is in a unique position to provide a flexible, effective, and timely suite of royalty financing options to help our clients grow their projects accretively and maximize their environmental impact.”
“We are excited to have the continued support of RE Royalties as we grow our portfolio of sustainable electricity assets,” said Trevor White, Switch President, and CEO. “Their capital continues to be flexible, timely, and scalable allowing us to execute our growth strategy, and we look forward to continuing this collaboration on future projects.”
On Behalf of the Board of Directors,
Bernard Tan
CEO
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties from renewable energy facilities and technologies by providing a non-dilutive financing solution 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.
About Switch Power Corporation
Switch Power Corporation is a developer and Independent Power Producer headquartered in Calgary, Alberta, that focuses on capital deployment in long-term infrastructure assets in underserved geographic and customer segments. Switch Power develops, builds, owns, and operates bespoke sustainable power generation projects consisting of distributed energy resources, with inherent value propositions to customers. Switch Power currently has a pipeline of 680MWs, across varying geographical, technology, and customer segments, with an estimated capital deployment of $220M over the next 24 months.
For further information, please contact:
Investor and Media Contact:
RE Royalties Ltd. Talia Beckett, VP of Communications and Sustainability T: (778) 374‐2000
E: taliabeckett@reroyalties.com www.reroyalties.com
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