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Year-to-date net loss after income tax for the nine months ended September 30, 2024 of $193,000, compared to a year to date net loss after income tax of $1,089,000 in the similar period in the prior year.
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Cash and cash equivalents of $18,442,000, including restricted cash, as of September 30, 2024.
Key business highlights for Q3 2023 up to today include:
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In August and November 2024, the Company completed a brokered and non-brokered private placement of Series 4 Green Bonds and issued an aggregate of 5,879 Canadian dollar denominated Green Bonds for aggregate gross proceeds of $5,879,000 and 340 United States dollar denominated Green Bonds for aggregate gross proceeds of US$340,000.
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In November 2024, the Company entered into an agreement with Abraxas Power Maldinvest Ltd., a wholly-owned subsidiary of Abraxas Power Corp., an Ontario-based energy transition developer, to provide up to $10 Million secured loan (the "Abraxas Loan") to support the construction of solar projects in the Maldives. The first tranche of $1.4 Million was advanced in mid November for the construction of two rooftop solar projects (the "Projects") with a combined generation capacity of 0.77 MWDC. 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. The Abraxas Loan will have an 18-month term and an interest rate of 13% per annum on advanced funds, compounded monthly. The Company will receive a gross revenue royalty of 2.0% on the Projects for the term of the PPAs.
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In November 2024, the Company entered into an agreement with a wholly-owned subsidiary of SolarBank Corporation, an independent renewable energy project developer and owner, focusing on distributed and community solar projects in Canada and the United States, to support the construction of three 4.99 MW Battery Energy Storage System ("BESS") projects to be located in Ontario, Canada. The BESS have long term contracts with the Ontario Independent Electricity System Operator under the E-LT1 program. The Company provided a secured loan of $3.0 Million with a 12-month term at an interest rate of 11% per annum. The Company also received a 0.40% royalty on the gross revenues generated for the life of the BESS, estimated at 20 years. The royalty rate will be reduced to 0.25% if the Loan is repaid within the first six months.
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In November 2024, the Company settled the 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. SPOBOC and SPOSOC became wholly owned subsidiaries of the Company. The Company currently owns and operates nine operating battery storage projects totalling 5.3MW/12.3 MWh, and a single operating 428 kWdc rooftop solar project in Ontario, Canada.
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In December 2024, the Company entered into an agreement with Alpin Solar SA, a German-Romanian renewable energy company focused on the development, construction and operation of solar power plants globally. The Company provided a secured loan ("Alpin Loan") to support a $6.3 million letter of credit ("LC") on behalf of Alpin to meet their security requirement with the Alberta Electricity System Operator for the 200 megawatt Sol Aurora Project located in Sturgeon County, Alberta, Canada. The Alpin Loan carries an annual interest rate of 13% with an initial term of 12 months. The Company will also receive a gross revenue royalty of $0.25 per MWh of energy production from the Sol Aurora Project for the life of the project.
"Since our last quarterly update, our team has made tremendous progress with the completion of 3 new investments, deploying over $10.7 million with existing and returning clients. We would like to thank the Series 4 Green Bondholders for their continued support on another successful capital raise, and with our existing cash on hand and near term backlog of opportunities under evaluation, we will continue to grow our revenue and income, EBITDA, and cash flows over the coming quarters," said Bernard Tan, CEO.
Q3 2024 Results Conference Call: December 6, 2024
Management will be hosting a third quarter conference call on December 6th, 2024 at 1:00pm PT (4:00pm ET) to discuss its Q3 2024 results. After opening remarks by management, there will be a question-and-answer session open to analysts and investors. Questions can be emailed in advance to investor@reroyalties.com
You can join the conference call at:
Date: Friday, December 6th, 2024
Time: 1:00pm PT (4:00pm ET)
Call in (audio only): +1 778-725-6875
Phone Conference ID: 946 197 577#
1Non-GAAP Performance Measures
This document contains presentation of Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA") as a non-GAAP financial measure. This measure may differ from similar measures used by and may not be comparable to such measures as reported by other companies. The Company believes that EBITDA is commonly used by certain investors, in conjunction with conventional IFRS measures, to enhance their understanding of the Company's performance. These measures have been derived from the Company's financial statements and applied on a consistent basis. Non-GAAP measures are intended to provide additional information, not to replace IFRS measures, and do not have a standard definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further information on the composition and usefulness of each non-GAAP financial measure, including reconciliation to their most directly comparable IFRS measures, is included in the non-GAAP financial measures section of our MD&A, which are available on Sedar+ or on the Company's website.
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, 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.
For further information, please contact:
RE Royalties Ltd.
Talia Beckett, VP of Communications and Sustainability
T: (778) 374‐2000
E: taliabeckett@reroyalties.com
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), nor any other regulatory body or securities exchange platform, 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+ 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.
