RE Royalties USD $5.6 Million Agreement with Nomad Transportable Power Systems
RE Royalties Enters into USD $5.6 Million Loan and Royalty Agreement with Nomad Transportable Power Systems
All amounts in US dollars unless otherwise stated
April 5, 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 an agreement with Nomad Transportable Power Systems Inc. (“NOMAD”), a company co-founded by KORE Power Inc., a US-based battery manufacturer, and Northern Reliability Inc., an energy systems integrator with over 50 years experience implementing storage projects around the world.
NOMAD is a first mover in the utility, commercial and industrial-scale mobile energy storage sector and was founded in response to demand for a more flexible, transportable battery energy storage system. NOMAD’s business objective is to sell mobile energy storage systems (“Units”) and provide energy storage as a service.
The Units combine a fully-enclosed trailer chassis with high energy density lithium-ion battery cells and a proprietary docking system to deliver a plug-and-play energy storage solution to their customers. NOMAD Units combine the benefits of a fixed-site energy storage system with increased flexibility and the ability to relocate Units, enabling a single Unit to serve multiple locations for seasonal, intermittent (outages), or temporary use (capital deferral), increasing asset utilization versus a fixed asset.
RE Royalties has provided a five-year USD $5.6 million senior secured working capital loan (the “Loan”). The Loan will enable NOMAD to manufacture Units including the NOMAD Traveler (2 MWh), and NOMAD Voyager (1.2 MWh). The Units will be sold to utilities, commercial and industrial customers.
The Loan has an interest rate of 12% per annum, interest-only for the term, with a bullet repayment after 5 years. The Company will also receive a gross revenue royalty of 3.5% on the sale of NOMAD’s Units manufactured during the term of the Loan. Integral Wealth Securities Limited, a full-service investment dealer engaged in wealth management, market making, and investment banking, introduced NOMAD to the Company.
Bernard Tan, CEO of the Company stated “This transaction offers RE Royalties an excellent opportunity to further expand our position in the battery storage market and demonstrates the demand for our innovative royalty financing solution. We are pleased to work with NOMAD to scale their battery systems deployment, and we look forward to exploring new opportunities with them in the future.”
“Partnering with RE Royalties allows NOMAD to scale up our operations, grow our fleet and expand our market presence,” said Chris McKay, General Manager of NOMAD. “We are offering our customers a flexible, reliable, and safe energy storage solution that is highly transportable to meet their needs in real-time. We are excited to be working with a like-minded company to grow this market.”
On Behalf of the Board of Directors,
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 100 royalties on solar, wind, hydro, battery storage, and renewable natural gas projects in Canada, Europe, and the United States. 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 Nomad Transportable Power Systems Inc.
Nomad Transportable Power Systems, Inc. (“NOMAD”), is a Delaware company formed by Northern Reliability (“NRI”) and KORE Power in 2020 to provide the energy industry with a standardized mobile energy storage platform. NOMAD is the first entrant into mobile lithium-ion energy storage space and combines its patent-pending over-the-road storage units with a standardized docking platform capable of interconnection with any distribution or transmission utility. The NOMAD system was designed from the onset to provide its customers all the benefits of fixed site energy storage, while eliminating both the capital commitments and long-term obligations of traditional energy storage requires.
About Integral Wealth Securities Limited
Integral Wealth Securities Limited is a full-service investment dealer engaged in wealth management, market making, and investment banking. The firm operates from eight offices, including Toronto, Calgary, Ottawa, and Vancouver.
For further information, please contact:
Renmark Financial Communications Inc.
Joshua Lavers: email@example.com
Tel: (416) 644-2020 or (212) 812-7680
RE Royalties Ltd. Talia Beckett: firstname.lastname@example.org Tel: (778) 374‐2000 www.reroyalties.com
Nomad Transportable Power Systems
Aleysha Newton: email@example.com
Tel: (208) 758-9392
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Forward Looking Statements
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