Business
RE Royalties Completes $2.3 Million Third Tranche Closing of Green Bonds for a Total of $9.8 Million
All amounts in Canadian dollars unless otherwise stated NOT FOR DISTRIBUTION TO U.S. NE...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Completes $2.3 Million Third Tranche Closing of Green Bonds for a Total of $9.8 MillionAll amounts in Canadian dollars unless otherwise statedNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / December 15, 2020 / RE Royalties Ltd. (TSXV:RE) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, today announced the successful closing of the third tranche (the \"Third Tranche\") of its brokered private placement of Series 1-2020 First Ranking Senior Secured Green Bonds (the \"Green Bonds\"), maturing December 15, 2025 (the \"Series1-2020 Maturity Date\") for aggregate gross proceeds of $2,044,000, and the concurrent closing of a non-brokered component for gross proceeds of $240,000. The total gross proceeds raised to date in the Company's inaugural Green Bond offering is $9,802,000.In the Third Tranche, the Company has issued 2,284 Green Bonds with a principal amount of $1,000 per Green Bond for aggregate gross proceeds of $2,284,000. Each Green Bond bears interest at a rate of 6% per annum, payable quarterly and is senior secured against the Company's portfolio of royalty and loan investments.\"We are very pleased to be nearing our green bond target of $10 million and appreciate the incredible support we have received from investors who are looking to make a strong financial and environmental impact with their capital. This capital will allow us to finance renewable and sustainable energy projects that will contribute to a cleaner future,\" said Bernard Tan, Chief Executive Officer of RE Royalties.Integral Wealth Securities Limited acted as agent (the \"Agent\") pursuant to an agency agreement entered between the Company and the Agent with respect to the Green Bond offering. In connection with the closing of the Third Tranche, the Company paid the Agent a cash fee of $81,760 (the \"Agent's Fee\") and a corporate finance fee of $7,000. The Company also issued to the Agent 82,865 warrants (the \"Agent's Warrants\") under the Offering and corporate finance warrants of 9,730. Each Agent's Warrant will entitle the holder to acquire one common share of the Company at an exercise price equal to $1.48 for a period of 24 months from the closing date. The Company also paid a finder's fee of $2,600 in connection with r...