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RE Royalties Enters into USD $5.6 Million Loan and Royalty Agreement with Nomad Transportable Power Systems
All amounts in US dollars unless otherwise stated VANCOUVER, BC / ACCESSWIRE / April 5, ...
About this update from Re Royalties Ltd.
[{"type":"text","content":"RE Royalties Enters into USD $5.6 Million Loan and Royalty Agreement with Nomad Transportable Power SystemsAll amounts in US dollars unless otherwise statedVANCOUVER, BC / ACCESSWIRE / April 5, 2022 / 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 an agreement with Nomad Transportable Power Systems Inc. (\"NOMAD\"), a company co-founded by KORE Power Inc., a US-based battery manufacturer, and Northern Reliability Inc., an energy systems integrator with over 50 years experience implementing storage projects around the world.NOMAD is a first mover in the utility, commercial and industrial-scale mobile energy storage sector and was founded in response to demand for a more flexible, transportable battery energy storage system. NOMAD's business objective is to sell mobile energy storage systems (\"Units\") and provide energy storage as a service. The Units combine a fully-enclosed trailer chassis with high energy density lithium-ion battery cells and a proprietary docking system to deliver a plug-and-play energy storage solution to their customers. NOMAD Units combine the benefits of a fixed-site energy storage system with increased flexibility and the ability to relocate Units, enabling a single Unit to serve multiple locations for seasonal, intermittent (outages), or temporary use (capital deferral), increasing asset utilization versus a fixed asset.RE Royalties has provided a five-year USD $5.6 million senior secured working capital loan (the \"Loan\"). The Loan will enable NOMAD to manufacture Units including the NOMAD Traveler (2 MWh), and NOMAD Voyager (1.2 MWh). The Units will be sold to utilities, commercial and industrial customers.The Loan has an interest rate of 12% per annum, interest-only for the term, with a bullet repayment after 5 years. The Company will also receive a gross revenue royalty of 3.5% on the sale of NOMAD's Units manufactured during the term of the Loan. Integral Wealth Securities Limited, a full-service investment dealer engaged in wealth management, market making, and investment banking, introduced NOMAD to the Company.Bernard Tan, CEO of the Company stated \"This transaction offers RE Royalties an excellent opportunity to further expand our position in the battery storage market and demonstr...