RE Royalties Announces Closing of $8.1 Million Unit Offering

Rhea-AI Summary

RE Royalties Ltd (TSXV:RE)(OTCQX:RROYF) has successfully closed its marketed offering of 9,837,680 Units, raising $8,066,898 at a price of $0.82 per Unit. Each Unit consists of one common share and one warrant, exercisable at $1.10 for two years. Proceeds will fund renewable energy projects aimed at reducing greenhouse gas emissions. Integral Wealth Securities Limited and Canaccord Genuity Corp. co-led the offering, which excludes registration under U.S. laws. The Company boasts over 100 royalties in the renewable energy sector globally.

Positive

• Raised $8,066,898 through issuance of 9,837,680 Units.
• Units priced attractively at $0.82, promoting investor interest.
• Proceeds aim to finance renewable energy projects, enhancing sustainability efforts.
• Company owns over 100 royalties in the renewable energy sector, ensuring diverse revenue streams.

Negative

• Agents received a cash commission of $556,957, impacting net proceeds.
• Warrants issued may dilute existing shareholder value if exercised.

VANCOUVER, BC / ACCESSWIRE / June 15, 2022 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, is pleased to announce that it has closed its marketed offering of units of the Company ("Units") previously announced on April 25, 2022 (the "Offering").

Pursuant to the Offering, the Company issued 9,837,680 Units for gross proceeds of $8,066,898. Each Unit was priced at $0.82 and consist of one (1) common share in the capital of the Company (each a "Common Share" and collectively, the "Common Shares"), and one (1) common share purchase warrant (each a "Warrant" and collectively, the "Warrants"). Each Warrant will be exercisable into one (1) Common Share in the capital of the Company (each a "Warrant Share" and collectively, the "Warrant Shares') at an exercise price of $1.10 per Warrant Share for a period of twenty-four (24) months following the closing of the Offering.

Integral Wealth Securities Limited and Canaccord Genuity Corp. (the "Agents") acted as co-lead and co-bookrunners in connection with the Offering.

The Company intends to use the net proceeds from the Offering to finance or re-finance renewable and sustainable energy projects that are intended to reduce or offset green house gas emissions and assist in mitigating the impact of climate change.

The Units were offered in all of the provinces of Canada, except Québec, by way of a prospectus supplement dated April 27, 2022 (the "Prospectus Supplement") to the Company's short form base shelf prospectus dated June 21, 2021 (the "Base Shelf Prospectus"). The Base Shelf Prospectus and the documents incorporated by reference therein, including the Prospectus Supplement and any marketing materials, are available on the Company's SEDAR profile available at www.sedar.com.

In connection with the Offering, the Agents received a cash commission equal to $556,957 and the Company also issued compensation warrants to the Underwriters entitling them to purchase an aggregate of 776,250 Common Shares at a price of $0.82 per share for a period of two years following closing.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

On Behalf of the Board of Directors,

Bernard Tan
CEO

About RE Royalties Ltd.

RE Royalties Ltd. acquires revenue-based royalties from renewable energy facilities and technologies by providing a non-dilutive financing solution to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns over 100 royalties on solar, wind, hydro, battery storage, and renewable natural gas 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 Integral Wealth Securities Limited

Integral Wealth Securities Limited is a full-service investment dealer engaged in wealth management, market making, and investment banking. The firm operates from eight offices, including Toronto, Calgary, Ottawa, and Vancouver.

About Canaccord Genuity Corp.

Canaccord Genuity Group Inc. is a global, full-service investment banking and financial services company that specializes in wealth management and brokerage in capital markets.

For further information, please contact:

Investor Contact:

Renmark Financial Communications Inc.
Joshua Lavers: jlavers@renmarkfinancial.com
Tel: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com

Media Contact:

RE Royalties Ltd.
Talia Beckett: taliabeckett@reroyalties.com
Tel: (778) 374‐2000
www.reroyalties.com

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.

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, the closing of the Offering, 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.

View source version on accesswire.com:
https://www.accesswire.com/705139/RE-Royalties-Announces-Closing-of-81-Million-Unit-Offering

FAQ

What is the total amount raised by RE Royalties in the recent offering?

RE Royalties raised a total of $8,066,898 in the recent offering.

What is the exercise price for the warrants issued by RE Royalties?

The exercise price for the warrants is $1.10 per warrant share.

How many units were issued in RE Royalties' recent offering?

RE Royalties issued 9,837,680 units in its recent offering.

What will the proceeds from the offering be used for?

The proceeds will be used to finance or refinance renewable energy projects.

Who acted as agents in RE Royalties' offering?

Integral Wealth Securities Limited and Canaccord Genuity Corp. acted as co-lead and co-bookrunners.