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All amounts are in Canadian dollars, unless otherwise indicated
VANCOUVER, BC / ACCESSWIRE / September 8, 2021 / RE Royalties Ltd. (TSXV: RE) (“RE Royalties“or the”Society“), a global leader in royalty-based financing for renewable energy, is pleased to announce that it has entered into a loan agreement with Switch Power Ontario Battery Operations Corp. (“Change operator“), a wholly owned subsidiary of Switch Power Corporation (“Power switch“), for a loan of $ 2.3 million intended to finance the acquisition by Switch OpCo of a portfolio of four operational energy storage projects (1.97 MW / 4.38 MWh in total) (the “Exploitation projects“) located in Ontario. RE Royalties will receive a royalty of 5% on all gross revenues received by development projects for the term of the energy service agreements (“ESA“), the initial term of which is 10 to 12 years with options for extension.
The operations projects are located next to commercial buildings owned by large property managers or REITs and use battery technologies from Tesla and Sungrow to significantly reduce their electricity costs by providing electricity during periods of time. peak demand periods. Switch OpCo will receive revenue from several different sources, the majority coming from AES with building owners. As part of the SEA, Switch OpCo can receive, depending on the project, between 70% and 75% of the cost savings generated by the batteries, mainly thanks to the reduction in loads as part of the Independent’s global adjustment program. Electricity System Operator.
The loan will have a term of 24 months and will bear an interest rate of 10% per year, compounded monthly, and payable at the end of the term.
Bernard Tan, CEO of the company, said: “This transaction provides RE Royalties with an excellent opportunity to expand into the Ontario battery storage market. Our company is proud to provide financing for the acquisition of operating projects, and we are pleased to establish a relationship with Switch Power. We look forward to working with them in the future to create energy security and take climate action with expanding their energy storage portfolio.
Trevor White, President and CEO of Switch Power commented, “This transaction is transformational for our growth into a new market and complements our value proposition of electricity as a service through energy storage, which has enormous market potential. We have a growing portfolio of projects and are excited to expand the market and do so by acquiring treasury assets. The non-dilutive and flexible financing of RE Royalties allowed us to step into this transaction and focus our capital on growth, and we are excited about this relationship.
Switch Power Corporation is an independent power developer and producer headquartered in Calgary, Alberta, focused on deploying capital into 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 680 MW pipeline, in various geographic, technology and customer segments, with an estimated capital deployment of $ 220 million over the next 24 months.
On behalf of the Board of Directors,
About RE Royalties Ltd.
RE Royalties Ltd. acquires royalties based on revenues from renewable energy production facilities by providing a non-dilutive financing solution to private and listed companies producing and developing renewable energy. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently holds 87 royalties on solar, wind, storage and hydroelectric projects in Canada, Europe and the United States. The Company’s business objectives are to provide shareholders with strong and growing returns, strong capital protection, a high growth rate through reinvestment and a sustainable investment focus.
For more information, please contact:
Renmark Financial Communications Inc.
Daniel Gordon: [email protected]
Phone. : (416) 644-2020 or (212) 812-7680
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.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction, and there will be no offer or sale of securities in any jurisdiction in which such an offer. , solicitation or sale would be illegal. The securities offered have not been approved or disapproved by any regulatory authority and none of those authorities has passed judgment on the accuracy or sufficiency of the short form base shelf prospectus or prospectus supplement. The offering and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or any securities law of a State and may not be offered or sold in the United States. or persons in the United States without an applicable registration or exemption from the registration requirements of the US Securities Act and applicable state securities laws.
This press release contains forward-looking information and forward-looking statements (collectively, “forward-looking information”) concerning the Company and within the meaning of Canadian securities laws. Forward-looking information is generally 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 forecasts and actual events or results may differ materially. Forward-looking information may relate to the future prospects of the Company and anticipated events or results and may include statements regarding the Company’s financial results, future financial condition, expected growth in cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, goals, industry trends and growth opportunities, including financing. The reader is encouraged to consult the most recent Company documents on SEDAR for a more complete discussion of all applicable risk factors and their potential effects, copies of which can be viewed through the Company’s profile page at ‘address www.sedar.com.
THE SOURCE: RE Royalties Ltd.
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