VANCOUVER, BC / ACCESSWIRE / June 18, 2020 / RE Royalties Ltd. (TSXV:RE) (“RE Royalties” or the “Company”) is pleased to announce that it has acquired royalties on 11 additional projects (the “Second Portfolio”) from an existing client and privately-held company in Ontario (the “OntarioCo”).
The Company has refinanced the existing OntarioCo loan and the new loan is a $5 Million loan for a term of one year at an interest rate of 10 percent. As part of the transaction the Company acquired gross revenue royalties (2%) on the Second Portfolio for approximately 20 years. In addition, the royalty rate on its original portfolio of 49 projects has also been increase to 2%. In both cases the 2% royalty rate is subject to a graduated reduction to a minimum of 1.25% if all or part of the loan is repaid prior to maturity.
OntarioCo owns and operates 57 (with an additional 3 in construction) roof-top and ground-mount solar projects in Ontario with a generation capacity of 22 MW DC. All the projects have 20-year Feed-In Tariff (“FIT”) contracts with the Independent Electricity System Operator (“IESO”), a crown corporation owned by the government of Ontario. All operational projects with existing FIT contracts and projects that have reached notice to proceed by the Ontario government will continue until the end of the FIT contract life.
Peter Leighton, COO of the Company, commented, “We are pleased to work with our client again on the completion of their new projects, that benefit both the environment, and our shareholders. This transaction showcases the value of the long-term relationships RE Royalties has with its existing clients.”
The acquisition of the Second Portfolio in Ontario increased RE Royalties portfolio from 75 royalties to 86 royalties on solar, wind and hydro projects in Canada, the United States and Europe.
RE Royalties has also retained the services of Renmark Financial Communications Inc. to assist with its investor relations activities. In consideration of the services to be provided, the monthly fees incurred by RE Royalties Ltd. will be a cash consideration of $8,000 CAD, starting June 1st, 2020 for a period of six months and monthly thereafter. Renmark Financial Communications does not have any interest, directly or indirectly, in RE Royalties Ltd. or its securities, or any right or intent to acquire such an interest.
On Behalf of the Board of Directors,
About RE Royalties Ltd.
RE Royalties acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive financing solution to privately held and publicly traded renewable energy generation and development companies. The Company currently owns 86 royalties on solar, wind and hydro 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.
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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, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities. 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.
SOURCE: RE Royalties Ltd.
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