Business
RE Royalties Enters into CAD $1.3 Million Loan Agreement with Switch Power for Ontario Rooftop Solar Generation Project
All amounts in Canadian dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / Sep...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Enters into CAD $1.3 Million Loan Agreement with Switch Power for Ontario Rooftop Solar Generation ProjectAll amounts in Canadian dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / September 8, 2022 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, has entered into a loan agreement with Switch Power Ontario Solar Operating Corporation (\"ProjectCo\"), a wholly-owned subsidiary of Alberta-based independent power producer Switch Power Corporation (\"Switch\"), for $1.3 Million (the \"Loan\"). The Loan will finance the acquisition of an operational 428 kWDC rooftop solar generation project located in Vaughan, Ontario (the \"Project\").The Loan will have an initial term of 6 months at a 10% interest rate per annum, compounded monthly, with the option for ProjectCo to extend the Loan by an additional 6 months. The Company will have first-ranking security interest over the Project including a lien over Project assets, and a pledge of shares in ProjectCo. The Company will also receive a gross revenue royalty of 1.0% on the Project for the remainder of the contract term, or approximately 12.5 years, (the \"Royalty\"). If the Loan term is extended, the Royalty will increase to 2.0%.This is RE Royalties' fourth transaction with Switch Power following the 2021 financings, which were used to acquire and procure battery energy storage systems for a portfolio of four operating and ten development energy storage projects located in Ontario.SWITCH is completing commissioning activities for five BESS projects which represent approximately 8 MWh of energy storage as part of its 2022 deployment. In addition, it has 19 MWh of BESS projects slated to enter procurement and construction for 2023 energization and is developing a further 22 MWh of BESS projects as part of its growing Ontario portfolio.\"Our company is very pleased to continue our relationship with Switch Power,\" said Bernard Tan, CEO of RE Royalties. \"We believe they have a great business model and a talented management team that is positioned to capitalize on the growing renewable energy market. As the industry evolves through new innovations, such as technology and battery storage, we believe our company is in a unique position to provide a flexible, effective, and time...