RE Royalties Announces Early Repayment of Loan, New Loan Agreement, and Strategic Market Maker Appointment

RE Royalties Ltd., a global leader in renewable energy royalty-based financing, reported that the early repayment of a five-year USD $5.6 million senior secured working capital loan extended to Nomad Transportable Power Systems Inc. has been completed, alongside a new financing agreement with Revolve Renewable Power Corp., and the appointment of a market maker.

The earlier loan to NOMAD, a mobile energy storage sector innovator, facilitated the production of mobile energy storage units. NOMAD has cleared the loan including interest, with RE Royalties poised to continue receiving a 3.5% gross revenue royalty on future sales of NOMAD’s units, ensuring an ongoing revenue stream.

In parallel, a secured loan of $415,000 was granted to Revolve for expanding into Mexico’s distributed generation market. This will support a 450kW rooftop solar project, expected to generate revenue through a 15-year Power Purchase Agreement. The loan terms for Revolve include a 12% annual interest, a 1% closing fee, and a 5% gross revenue royalty to RE Royalties for the PPA duration.

RE Royalties’ CEO, Bernard Tan, highlighted the strength of the company’s financing model, noting that these transactions underscore the potential for recycling capital to create new royalty streams without needing additional capital. He stressed the company’s role in supporting the growth of NOMAD and Revolve.

Furthermore, Velocity Trade Capital Ltd. has been tasked with providing market-making services to enhance the trading of RE Royalties shares, aiming to improve liquidity and reduce volatility. The agreement with Velocity Trade, aimed at enhancing market orderliness, operates on a monthly fee basis with a provision for termination by either party.