All amounts in Canadian dollars unless otherwise stated
VANCOUVER, BC / ACCESSWIRE / November 30, 2022 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, reports its financial results for the three and nine months ended September 30, 2022 ("Q3 2022"). For further information on these results please see the Company's Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis for Q3 2022, filed on SEDAR at www.sedar.com.
Key business and financial highlights of Q3 2022 include:
- Provided a secured acquisition loan of $1.3 million to Switch Power Corporation ("Switch") to acquire an operational 428 kWDC solar project located in Vaughan, Ontario. RE Royalties will also receive a gross revenue royalty of 1% on the project for the remainder of the contract term, or approximately 12.5 years and if the loan term is extended beyond the initial 6-month term, the royalty will increase to 2%.
- Provided a $1.86 million secured loan facility to ReVolve Renewable Power Corp ("ReVolve"), of which a partial advance was made subsequent to the quarter-end, to support the purchase of battery and inverter equipment for three energy storage projects, totalling 3.2 MWh of capacity, in Punta Cancun, Mexico. RE Royalties will also receive a gross revenue royalty of 5% on all revenues received on the three projects for 10 years.
- Quarterly revenue and income, including the share of income from the Company's investment in OCEP for the three months ended September 30, 2022, of $1,303,000, an increase of $794,000 or 156% over the similar period in the prior year.
- Quarterly gross profit, including changes in fair value of financial assets and share of income in OCEP, of $1,237,000, an increase of $791,000 or 177% over the similar period in the prior year.
- Year to date revenue and income, including the share of income from the Company's investment in OCEP for the nine months ended September 30, 2022, of $3,146,000, an increase of $1,781,000 or 130% over the similar period in the prior year.
- Year to date gross profit, including changes in fair value of financial assets and share of income in OCEP, of $2,910,000, an increase of $1,765,000 or 154% over the similar period in the prior year.
- Quarterly net income after income tax of $470,000 and total comprehensive income of $816,000. Year to date net income after income tax of $146,000 and total comprehensive income of $578,000.
- Cash and cash equivalents of $8,345,000, including restricted cash.
Subsequent to the end of Q3 2022:
- In October 2022, the Company provided Delta Energy Partners ("Delta") with a USD$3.9 million secured loan and royalty facility. Delta is a provider of Energy-as-a-Service ("EaaS") solutions to customers in Puerto Rico and the loan will finance the procurement and installation of energy efficiency and building energy equipment.
- In November 2022, the Company's green bondholders approved by way of extraordinary resolution, to modify the debt to equity ratio per the bond indenture from 1:1 to 3:1. This will allow the Company to increase its use of debt to fund new assets.
"During the quarter, we continue to deliver on our pipeline of deal flow and further increase our recurring revenue streams with Switch, ReVolve and Delta Energy Partners. Having our existing clients return for additional royalty based financing shows the strength of our business model in supporting their growth" said Bernard Tan, CEO. "The additional investments made during the quarter, along with the potential transactions currently under due diligence, will continue to grow our revenues and income, and cash flows in the future."
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 North America, Mexico and Europe. 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:
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
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.
View source version on accesswire.com:https://www.accesswire.com/729391/RE-Royalties-Announces-156-increase-in-Quarterly-Revenue--Third-Quarter-2022-Financial-Results
