The agreement involves acquisition financing for wind and run-of-river hydro projects in Western Canada
Source: WindRiver
All amounts in Canadian dollars unless otherwise stated
October 4, 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, has entered into Revolve Acquisition Corp. (the “AcquisitionCo”), a wholly owned subsidiary of Revolve Renewable Power Corp. (TSXV: REVV) (“Revolve”), to provide a CAD $4.0 million secured loan (the “Loan”). Revolve is a North American renewable energy developer with 2.8 GW of wind, solar, and battery projects under development in the USA and Mexico.
The Loan will support AcquisitionCo’s proposed acquisition of WindRiver Power Corporation (“WindRiver”) a Canadian based owner, operator and developer of wind and hydro projects (the “Proposed Acquisition”). WindRiver has a minority ownership (21%) in two operational run-of-river hydro projects in British Columbia, and a majority ownership (51%) in an operational wind project in Alberta with a combined gross capacity of 23 MW (the “Operational Projects”). WindRiver also has majority ownerships (70 to 87.5%) in two development-stage hydro projects in British Columbia with a combined gross capacity of 90 MW.
Completion of the Proposed Acquisition is subject to certain conditions, including the final acceptance by the TSX Venture Exchange (the “TSXV”), receipt of WindRiver shareholder approval, receipt of a final order approving the Arrangement from the Court of King’s Bench of Alberta, Judicial Centre of Calgary (the “Final Order”) and other customary closing conditions.
The Operational Projects receive revenue from Power Purchase Agreements (“PPAs”) with BC Hydro and the City of Medicine Hat, for the hydro projects and the wind project, respectively. The Operational Projects have PPAs with remaining terms ranging from 32-35 years for the hydro projects and 11 years for the wind project.
The Loan will have a term of 36 months and bear interest at the rate of 12% per annum, compounded monthly, and payable semi-annually. The Company will receive a structuring fee of 1.0% on the Loan value at closing, and a gross revenue royalty of 0.5% on the Operating Projects during the term of the Loan, growing to a gross revenue royalty of 1.0% upon repayment of the Loan for the remaining life of the PPAs.
This Loan represents RE Royalties’ third transaction with Revolve, with the Company previously providing Revolve with a $1.6 Million loan to support its acquisition of an operational rooftop solar portfolio in Mexico, and a $1.9 Million loan to support the procurement of battery energy storage systems for three energy storage projects in Mexico.
Bernard Tan, CEO of RE Royalties, stated: "We’re pleased to continue our partnership with Revolve and look forward to working with them on their growing portfolio of renewable energy projects. This investment presents an excellent opportunity for our investors and highlights the sustained demand for our innovative financing solutions."
On Behalf of the Board of Directors,
Bernard Tan
CEO
About Revolve Renewable Power
Revolve Renewable Power Corp. is working to develop utility scale renewable energy generation projects in North America, focused on wind, solar and battery storage technologies. Revolve currently has a portfolio of 2.9 gigawatts ("GW") of projects under active development and a further 2GW of greenfield opportunities, in the process of converting to its pipeline in the near term. Revolve is in the process of expanding its pipeline and development activities in the US and is targeting an active portfolio of up to 5GWs under development.
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, battery storage, energy efficiency and renewable natural gas projects in Canada, United States, Mexico, and Chile. 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:
Melanee Henderson, Investor Relations
T: (778) 373-6731 TF 800-667-2114
E: melaneehenderson@reroyalties.com
Talia Beckett, VP of Communications and Sustainability T: (778) 374‐2000
E: taliabeckett@reroyalties.com www.reroyalties.com
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Forward Looking Statements
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