RE Royalties grants C $ 4.3 million secured loan to switch power to five battery storage projects

0

News and research before you hear about it on CNBC et al. Claim your 1-week free trial for StreetInsider Premium here.


All amounts are in Canadian dollars, unless otherwise indicated

VANCOUVER, BC / ACCESSWIRE / November 8, 2021 / RE Royalties Ltd. (TSXV: RE) (“RE Royalties” or the “Company”), a global leader in royalty-based financing for renewable energy, has entered into an equipment loan agreement with Switch Power Ontario Battery Operations Corp. (“Switch OpCo”), a wholly owned subsidiary of Switch Power Corporation (“Switch Power”), for $ 4.3 million (the “EP Loan”).

The EP Loan will allow Switch OpCo to acquire Battery Energy Storage Systems (“BESS”) for five Switch OpCo-owned projects (the “2022 Projects”) located in Ontario. The EP Loan is RE Royalties’ third transaction with Switch Power following the previously announced $ 2.3M Acquisition Loan and $ 0.8M Development Acquisition Loan, which were utilized by Switch Power to acquire the portfolio of 4 energy storage projects in operation and 10 development projects located in Ontario and will be used to finance the first 5 development projects.

The 2022 projects will have a total storage capacity of 3.5 MW and are expected to reach commercial operations in the summer of 2022. The 2022 projects are located next to existing buildings owned by large industrial and financial institutions, and Switch OpCo will receive funding. income from several sources, the majority coming from energy service agreements (“ESAs”) with building owners. As part of the SEAs, Switch OpCo will receive a percentage of the cost savings generated by the BESS systems, primarily by reducing the overall adjustment costs, as part of the Industrial Conservation Program of the Independent Electricity System Operator.

The EP loan will be provided in two drawings: $ 2.8 million at closing and the remaining $ 1.5 million in March 2022. The EP loan will have a term of 24 months and will be repayable at maturity, bear interest. at 8.6% on funds drawn, with interest payable during the term. The Company will also receive a sliding-scale royalty of between 3% and 5% on the gross revenues generated by the 2022 projects for the life of the AES, for an initial term of 10 to 15 years, with options for extension.

Bernard Tan, CEO of RE Royalties, commented: “We are very happy to develop our relationship with Switch Power with this third transaction. Trevor White and his team at Switch continue to make incredible strides in building their clean energy portfolio, and we look forward to seeing these projects reach commercial operations in the coming months. “

“The timing, flexibility and structure of RE Royalties’ financing instruments and this loan allow us to move forward with the purchase of critical storage systems to meet the commissioning dates of the year. future and generate significant energy solutions for our customers. This, along with the The two previous transactions with RE Royalties form the basis of an excellent financing partnership. We look forward to the success of these projects, ”said Trevor White, President and CEO of Switch Power.

On behalf of the Board of Directors,

Bernard Tan
CEO

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 98 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.

About Switch Power Corporation

Switch Power Corporation is an independent power developer and producer headquartered in Calgary, Alta. That focuses on deploying capital into long-term infrastructure assets in geographic and customer segments poorly. served. Switch Power develops, builds, owns and operates bespoke sustainable power generation projects consisting of distributed energy resources, with inherent value propositions to customers through physical supply. 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.

For more information, please contact:

Investor contact:

Renmark Financial Communications Inc.
Daniel Gordon: [email protected]
Phone. : (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com

Media contact:

RE Royalties
Talia Beckett: [email protected]
Phone: (778) 374‐2000
www.reroyalties.com

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.

Forward-looking statements

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.

See the source version on accesswire.com:
https://www.accesswire.com/671491/RE-Royalties-Provides-CAD-43-Million-Secured-Loan-to-Switch-Power-for-Five-Battery-Storage-Projects


Source link

Share.

About Author

Comments are closed.