RE Royalties Acquire Royalties on 49 Solar Projects In Ontario
VANCOUVER, BC / ACCESSWIRE / May 16, 2019 / RE Royalties Ltd. (TSX-V: RE) (“RE Royalties” or the “Company”) is pleased to announce that it has entered into a loan and royalty transaction with a private group of companies in Ontario (“OntarioCo”) on 49 roof-top solar projects (“Solar Project Portfolio”).
The Company will be providing OntarioCo with a $5 million interest-bearing loan for one-year (“Loan”), in exchange for a gross revenue royalty (“Royalties”) on the Solar Project Portfolio. The Solar Project Portfolio has a combined generation capacity of 15.7 MW and has been in operation for between three to four years, and all are qualified under the Ontario Feed-in-Tariff program. OntarioCo will be utilizing the proceeds of the Loan to complete construction on a separate portfolio of solar projects in Canada.
The Solar Project Portfolio generates approximately 17.5 million kilowatt hours of clean energy per year; capable of removing 874 tonnes of carbon(1) from the electricity grid or providing clean electricity to 1,943 homes in Ontario annually(2).
Bernard Tan, CEO of the Company, commented, “We are pleased to acquire project royalties on this portfolio of 49 separate solar projects located in Ontario. The Province of Ontario is a leader in solar, with 98% of solar projects built and operating in Canada currently located there. We are excited to provide our client with the necessary capital to increase the size of their operating portfolio and to help Ontario residents reduce their carbon emissions. This transaction demonstrates the strength of the royalty financing model in creating a win-win solution for our clients, shareholders and the environment.”
On Behalf of the Board of Directors,
Neither the TSX Venture Exchange nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
(1) https://www.carbonzero.ca, Government of Canada 2017 National Inventory Report: Greenhouse Gas Sources and Sinks
(2) Ontario Energy Board, EB-2016-0153
About RE Royalties Ltd.
RE Royalties acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive royalty financing solution to privately-held and publicly-traded renewable energy generation and development companies. The Company currently owns royalties from 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.
For further details on RE Royalties, please visit www.reroyalties.com or contact us at (778) 374‐2000 or send us an email at .
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. Forward-looking information contained in this news release is based on certain assumptions regarding expected growth, results of operations, performance, industry trends and growth opportunities.
While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the renewable energy industry generally, income tax and regulatory matters; the ability of the Company to implement its business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks.
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.