11:45:47 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



RE Royalties Ltd
Symbol RE
Shares Issued 43,127,607
Close 2023-02-03 C$ 0.78
Market Cap C$ 33,639,533
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RE Royalties acquires royalty on 27 MW solar project

2023-02-06 10:43 ET - News Release

Mr. Bernard Tan reports

RE ROYALTIES ACQUIRES NEW ROYALTY ON 27MW SOLAR PROJECT IN PENNSYLVANIA

RE Royalties Ltd. has acquired a gross revenue royalty on the 27-MGDC (megawatts of direct current) (20 MWAC (megawatts of alternating current)) Jackson Center solar project phase 2, located in Mercer county, Pennsylvania, under development by Teichos Energy LLC. Once operational, Jackson Center will generate an estimated 42,800 megawatt-hours per year of clean energy. All amounts in U.S. dollars unless otherwise stated.

The company has entered into a secured loan agreement with Teichos whereby the company will provide a $1.8-million letter of credit (LC) on behalf of Teichos to meet its security requirement with PJM Interconnection.

The loan will have an initial six-month term and bear an interest rate of 13 per cent per annum, compounded annually, and payable at the end of the term. The loan can be extended for two additional six-month terms. The company will have first-ranking security interest over the project, including a lien over project assets, and a pledge of ownership in the project.

The company will receive a 1-per-cent gross revenue royalty on the project for a period of 15 years once the project reaches commercial operation. If the loan term is extended, the royalty will increase to 1.5 per cent (six-month extension) or 2 per cent (12-month extension).

In October, 2021, the company made a $2.2-million loan to Teichos as part of Jackson Center solar project phase 1. Bernard Tan, chief executive officer of the company, stated: "We are excited to continue to work with the Teichos team on the second phase of the Jackson Center project. We are pleased to see the progress made to date and our non-dilutive royalty financing solution provides Teichos with the flexibility to continue advancing this project and to bring it one step closer to commercial operation."

Steve Voorhees, the CEO of Teichos, stated: "Teichos is impressed with RE Royalties capabilities, staff, work ethic and approach to business. Their stellar responsiveness to our needs on this project is refreshing and we look forward to doing business with them going forward."

About RE Royalties Ltd.

RE Royalties 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, hydro, battery storage, energy efficiency and renewable natural gas projects in Canada, the United States and Mexico. The company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through reinvestment and a sustainable investment focus.

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