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RE Royalties Enters into USD $3.2 Million Loan and Royalty Agreement with Cleanlight for Solar Battery Storage Systems in Latin America
All amounts in US dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / August 8, 2023...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Enters into USD $3.2 Million Loan and Royalty Agreement with Cleanlight for Solar Battery Storage Systems in Latin AmericaAll amounts in US dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / August 8, 2023 / RE Royalties Ltd. (TSX.V:RE)(OTCQX:RROYF) (\"RE Royalties\" or the \"Company\"), a global leader in renewable energy royalty-based financing, has entered into a USD 3.2 million loan and royalty acquisition agreement with Butler Corporation SpA (DBA \"Cleanlight\"), a high-growth Chilean technology company and manufacturer of mobile solar-battery systems including solar lighting towers (\"Solar Towers\"), and solar-hybrid battery generators (\"SolBox\").The loan will be drawn in two tranches, with a term of 2 years and an interest rate of 12% per annum. As part of the transaction, the Company acquired a 10-year royalty calculated based on 5% of gross revenues (the \"Royalty\") commencing on closing, which reduces to 3% after certain revenue milestones are met.The loan facility will provide working capital and finance Cleanlight's expansion into other countries in Latin America.Cleanlight was founded in 2019 in response to customer needs in the mining sector for off-grid lighting and communications towers without the cost, emissions, and maintenance challenges of diesel-powered options. Cleanlight's Solar Towers are priced competitively to diesel options, passing significant fuel and maintenance cost savings on to the customer in addition to environmental benefits. Cleanlight has generated approximately $4 million in annual revenue, with over 550 Solar Towers sold, and has a rental fleet of over 150 units. Cleanlight to date has sold over 850 Solbox units to home-owners and businesses through distribution agreements with large box stores in Latin America.\"This investment provides RE Royalties with the opportunity to provide essential growth capital to a high growth company in an underserved financial market. We are excited to enter the South American market and look forward to working with the Cleanlight team to help its customers save money and reach their net zero goals,\" said Bernard Tan, CEO of RE Royalties.\"Partnering with RE Royalties will allow Cleanlight to scale up operations, grow sales and expand market presence in the mining sector, which is desperately seeking sustainable solutions,\" said...