RE Royalties Acquires Royalty on 27MW Solar Project in Pennsylvania
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All amounts in US dollars unless otherwise stated
VANCOUVER, BC / ACCESSWIRE / October 8, 2021 / RE Royalties Ltd. (TSXV:RE) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, is pleased to announce that it has acquired a sliding scale gross revenue royalty on the 27 MWDC (20 MWAC) Jackson Center Solar Project Phase 1 ("Jackson Center" or "Project") located in Mercer County, Pennsylvania.
Jackson Center is owned by Teichos Energy, LLC ("Teichos"), a renewable energy development company headquartered in Seattle, Washington and is an advanced stage solar project that is expected to reach commercial operation in 2023. Once operational, Jackson Center will generate 38,800 MWh per year of clean energy.
The Company has entered into a secured loan agreement (the "Loan") with Teichos whereby the Company provided a US$2.2 million letter of credit on behalf of Teichos, for Teichos to post certain collateral for the Project's grid connection.
The Loan will have an initial term of 6 months and bear an interest rate of 10% per annum, compounded annually, and payable at the end of the term. The Company will have first-ranking security interest over the Project including a lien over Project assets, and a pledge of all equity capital in the Project.
The Company will receive a 1% gross revenue royalty on the Project (the "Royalty") for a period of 15 years once the Project reaches commercial operation. The Loan term can be extended for two additional 6-month increments, for a total extension of up to 12 months. If the Loan term is extended, the Royalty will increase accordingly.
Bernard Tan, CEO of the Company stated "We are excited to work with the Teichos team on this transaction to help further advance the Jackson Center Project. Our non-dilutive royalty financing solution provides Teichos with the flexibility to continue developing this Project and to bring it one step closer to commercial operation."
Steve Voorhees, the CEO of Teichos stated, "Teichos is impressed with RE Royalties capabilities, staff, work ethic and approach to business. Their stellar responsiveness to our needs on this Project is refreshing and we look forward to doing business with them going forward."
On Behalf of the Board of Directors,
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive financing solution to privately held and publicly traded renewable energy generation and development companies. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns 97 royalties on solar, wind, storage and hydro projects in Canada, Europe, and the United States. The Company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.
About Teichos Energy, LLC
Teichos Energy, LLC is a renewable energy development company headquartered in Seattle, Washington. Teichos operates with a 16-member team of highly experienced and successful power industry professionals, with deep technical, commercial, and financial capabilities. The Teichos' team has successfully developed more than 700 MW of solar, wind, and geothermal energy over the past 15 years and consist of former senior management of Ridgeline Energy, after having sold Ridgeline and their portfolio of renewable energy projects to Veolia in 2008.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Forward Looking Statements
This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the Company's financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities including financing. The reader is referred to the Company's most recent filings on SEDAR for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com.
SOURCE: RE Royalties Ltd.
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