RE Royalties Enters into Loan and Royalty Agreement with Abraxas Power for up to CAD $10 Million and Announces Loan Settlement with Switch Power
RE Royalties has entered into a loan agreement with Abraxas Power to provide up to CAD $10 Million for solar projects in the Maldives. The first tranche of CAD $1.4 Million closed on November 18, 2024, funding two rooftop solar projects with 0.77 MWDC capacity. The loan features a 13% annual interest rate and an 18-month term, plus a 2% gross revenue royalty.
Additionally, RE Royalties settled outstanding loans with Switch Power, acquiring full ownership of SPOBOC's nine battery storage projects (5.3MW/12.3MWh) and SPOSOC's 428 kWdc rooftop solar project.
RE Royalties ha stipulato un accordo di prestito con Abraxas Power per fornire fino a CAD $10 milioni per progetti solari alle Maldive. La prima rata di CAD $1,4 milioni è stata chiusa il 18 novembre 2024, finanziando due progetti solari su tetto con una capacità di 0,77 MWDC. Il prestito prevede un tasso di interesse annuale del 13% e una durata di 18 mesi, oltre a una royalty del 2% sui ricavi lordi.
Inoltre, RE Royalties ha saldato prestiti in sospeso con Switch Power, acquisendo la piena proprietà dei nove progetti di stoccaggio di batterie di SPOBOC (5,3MW/12,3MWh) e del progetto solare su tetto da 428 kWdc di SPOSOC.
RE Royalties ha celebrado un acuerdo de préstamo con Abraxas Power para proporcionar hasta CAD $10 millones para proyectos solares en Maldivas. La primera tranche de CAD $1,4 millones se cerró el 18 de noviembre de 2024, financiando dos proyectos solares en azoteas con una capacidad de 0,77 MWDC. El préstamo tiene una tasa de interés anual del 13% y un plazo de 18 meses, además de una regalía del 2% sobre los ingresos brutos.
Adicionalmente, RE Royalties liquidó préstamos pendientes con Switch Power, adquiriendo la plena propiedad de los nueve proyectos de almacenamiento de baterías de SPOBOC (5.3MW/12.3MWh) y del proyecto solar en azotea de 428 kWdc de SPOSOC.
RE Royalties는 Abraxas Power와 협력하여 몰디브의 태양광 프로젝트를 위해 최대 CAD $10백만의 대출 계약을 체결했습니다. 첫 번째 분할금 CAD $1.4백만은 2024년 11월 18일에 마감되어 0.77 MWDC 용량의 두 개의 옥상 태양광 프로젝트에 자금을 지원합니다. 이 대출은 연간 13%의 이자율과 18개월의 기간, 그리고 2%의 총 수익 로열티를 특징으로 합니다.
추가로, RE Royalties는 Switch Power와의 미지급 대출을 정리했으며, SPOBOC의 아홉 개 배터리 저장 프로젝트(5.3MW/12.3MWh)와 SPOSOC의 428 kWdc 옥상 태양광 프로젝트의 전적인 소유권을 인수했습니다.
RE Royalties a conclu un accord de prêt avec Abraxas Power pour fournir jusqu'à CAD $10 millions pour des projets solaires aux Maldives. La première tranche de CAD $1,4 million a été finalisée le 18 novembre 2024, finançant deux projets solaires sur toit d'une capacité de 0,77 MWDC. Le prêt présente un taux d'intérêt annuel de 13 % et une durée de 18 mois, ainsi qu'une redevance de 2 % sur le chiffre d'affaires brut.
De plus, RE Royalties a réglé des prêts en cours avec Switch Power, acquérant la pleine propriété des neuf projets de stockage de batteries de SPOBOC (5,3 MW/12,3 MWh) ainsi que du projet solaire sur toit de 428 kWdc de SPOSOC.
RE Royalties hat einen Kreditvertrag mit Abraxas Power abgeschlossen, um bis zu CAD $10 Millionen für Solarprojekte auf den Malediven bereitzustellen. Die erste Tranche in Höhe von CAD $1,4 Millionen wurde am 18. November 2024 abgeschlossen, wobei zwei Solaranlagen auf Dächern mit einer Leistung von 0,77 MWDC finanziert wurden. Der Kredit hat einen jährlichen Zinssatz von 13 % und eine Laufzeit von 18 Monaten sowie eine 2 % Bruttoeinnahmen-Royalty.
Darüber hinaus hat RE Royalties ausstehende Kredite bei Switch Power beglichen und hat die volle Eigentümerschaft an den neun Batterie-Speicherprojekten von SPOBOC (5,3 MW/12,3 MWh) sowie an dem 428 kWdc Solaranlagen-Projekt auf dem Dach von SPOSOC erworben.
- Secured new revenue stream through 2% royalty on Maldives projects
- 13% interest rate on $10M potential loan deployment
- Acquired ownership of operational battery storage projects totaling 5.3MW/12.3MWh
- Expanded into new geographic market (Maldives)
- First tranche of $1.4M already deployed
- Short loan term of only 18 months indicates temporary revenue stream
- Subsequent tranches subject to additional conditions and approvals
All amounts in Canadian dollars unless otherwise stated.
VANCOUVER, BC / ACCESSWIRE / November 21, 2024 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, has entered into an agreement with Abraxas Power Maldinvest Ltd. (the "Borrower"), a UAE-incorporated wholly-owned subsidiary of Abraxas Power Corp. ("Abraxas"), an Ontario-based energy transition developer, focused on decarbonizing hard-to-abate sectors, to provide up to a CAD
The Loan will have multiple tranches. The first tranche of CAD
The Projects are located at a hospital in Malé, the capital of the Maldives, and an island resort, approximately 50km north of Malé. They will generate revenue from power purchase agreements ("PPAs") for a term of up to 15 years with the co-located businesses. Currently, both businesses rely primarily on electricity produced by diesel generators. The rooftop solar installations will reduce energy expenses and significantly reduce the negative environmental impacts associated with burning diesel fuel.
The Loan will have an 18-month term and an interest rate of
Bernard Tan, CEO of RE Royalties, stated: "This transaction allows RE Royalties to establish a foothold in a new jurisdiction with a clear pathway to deploy more capital. We are thrilled to be working with the management of Abraxas again, and we look forward to collaborating with them in the future to further grow their portfolio of renewable energy projects."
J. Colter Eadie, CEO of Abraxas, commented: "This investment has been a significant catalyst for initiating the energy transition in the Maldives, aligning with Abraxas' broader mandate from the Government of Maldives to decarbonize under its Nationally Determined Contributions (NDC) commitment. The RE Royalties investment facilitates the development of a distributed generation portfolio in the Maldives, focusing on decarbonizing critical economic sectors like healthcare and tourism. Tourism accounts for
Loan Settlement with Switch Power
The Company is also pleased to announce the settlement of outstanding loans with Switch Power Battery Operating company ("SPOBOC") and with Switch Power Solar Operating Company ("SPOSOC"). Under the terms of the settlement the Company will retain the shares of SPOBOC and SPOSOC in full and final satisfaction of the outstanding debt. Effective November 1, 2024, SPOBOC became a wholly owned subsidiary of the Company with the result that the Company will operate the nine operating battery storage projects owned by SPOBOC totalling 5.3MW / 12.3 MWh. Similarly, SPOSOC also became a wholly owned subsidiary of the Company, and the Company will operate the single operating 428 kWdc rooftop solar project owned by SPOSOC.
On Behalf of the Board of Directors,
Bernard Tan
CEO
About RE Royalties Ltd.
RE Royalties Ltd. acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions 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, battery storage, energy efficiency and renewable natural gas projects in Canada, United States, Mexico, and Chile. 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 Abraxas Power Corp.
Abraxas Power is a pioneering energy transition developer focused on decarbonizing hard-to-abate sectors and creating value by solving the current and future challenges of the energy transition. Abraxas Power's broad mandate allows it to see opportunities across technologies and geographies to transform the global energy industry. Our team has extensive experience in leading, financing, and solving the challenges associated with energy transition, and a proven track record of delivering complex, large-scale development projects across various disciplines, including renewable power and storage, hydrogen and ammonia production, industrial and precious metals, large-scale project construction, and operations at scale. The team possesses strong project finance and capital markets experience and has a history of creating value for shareholders, stakeholders, and the communities they live in. Abraxas has signed strategic partnerships with various global strategics and technology providers.
Abraxas has secured over US
For further information, please contact:
Investor and Media Contact:
RE Royalties Ltd.
Talia Beckett, VP of Communications and Sustainability
T: (778) 374‐2000
E: taliabeckett@reroyalties.com
www.reroyalties.com
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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 as well as other information filed with the OTC Markets 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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