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RE Royalties Announces Early Repayment of Loan by Nomad Transportable Power Systems, New Loan with Revolve Renewable Power, and Appointment of Market Maker
All amounts in Canadian dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / March 27...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Announces Early Repayment of Loan by Nomad Transportable Power Systems, New Loan with Revolve Renewable Power, and Appointment of Market MakerAll amounts in Canadian dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / March 27, 2024 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, is pleased to announce the early repayment of the five-year USD $5.6 million senior secured working capital loan (the \"NOMAD Loan\") extended to Nomad Transportable Power Systems Inc. (\"NOMAD\") on April 1, 2022.Under the terms of the agreement, NOMAD, a pioneer in the mobile energy storage sector, utilized the loan to manufacture mobile energy storage systems (\"Units\"), including the NOMAD Traveler (2 MWh) and NOMAD Voyager (1.2 MWh). The NOMAD Loan has been repaid in full, including any outstanding interest. RE Royalties will continue to receive a gross revenue royalty of 3.5% on the sale of an additional 42MWh of NOMAD's Units. This translates to ongoing revenue for RE Royalties, providing a recurring income stream as NOMAD's battery systems continue to make an impact in the market.The Company has also entered into a new $415,000 secured loan (the \"Revolve Loan\") with existing client Revolve Renewable Power Corp. (TSXV:REVV) (\"Revolve\"), to enable their continued expansion into the Mexican distributed generation market. The Revolve Loan will be used to fund construction of a new 450kW rooftop solar project (the \"Project\"), which will be installed on the site of a food manufacturing business (the \"Customer\") in Central Mexico. The Project will receive revenue from a 15-year Power Purchase Agreement (\"PPA\") between Revolve and the Customer.The Revolve Loan will have a term of two years and will be secured against the assets of the Project, bear interest at 12% per annum, payable quarterly, and Revolve will pay a 1% closing fee on the total Loan value. A gross revenue royalty of 5% will apply to all revenues received by Revolve from the Project for the 15-year term of the PPA.This loan represents RE Royalties' fourth transaction with Revolve, with the Company previously providing Revolve with a $1.6 Million loan to support its acquisition of an operational rooftop solar portfolio in Mexico, a $1.9 Million loan to support the ...