Re Royalties Stock Price, News & Analysis

RE Royalties (RROYF) has entered into a letter of intent to provide a US$8 million secured loan to Revolve Renewable Power for acquiring a 95% interest in a 9.6 MW operating wind project in the United States. The project features six 1.6 MW wind turbines generating revenue through a Power Purchase Agreement with a regional utility.

The loan will have a 24-month term with 12% interest on drawn funds, payable quarterly. RE Royalties will receive a 5% royalty on gross project revenues for its remaining life. The project includes a lease agreement for 127 acres of land extending until 2046.

This investment represents RE Royalties' largest single investment to date and will add significant accretive cash flow to their portfolio. For Revolve, this acquisition will increase their total operational capacity to 22 MW, building on their existing 12.33 MW portfolio in Canada and Mexico.

RE Royalties (TSXV:RE)(OTCQX:RROYF) has declared its fourth quarter dividend of $0.01 per share for Q4 2024, payable on February 19, 2025, to shareholders of record on January 29, 2025. This marks the company's 24th consecutive quarterly dividend, with total dividends for fiscal 2024 amounting to $0.04 per common share.

The company completed three separate investments with existing and repeat clients during the past quarter, which is expected to enhance revenues, income, and cash flow. RE Royalties currently owns over 100 royalties on various renewable energy projects across North America, Mexico, and Europe, including solar, wind, hydro, battery storage, energy efficiency, and renewable natural gas projects.

RE Royalties (TSXV:RE)(OTCQX:RROYF) has announced the final closing of its non-brokered private placement of Series 4 senior secured green bonds. The company issued 650 Canadian dollar denominated Green Bonds at $1,000 per bond, raising $650,000. Combined with previous closings, the total issuance amounts to 6,529 CAD Green Bonds ($6,529,000) and 340 USD Green Bonds (US$340,000).

The Green Bonds mature on August 29, 2029, offering a 9% annual interest rate paid quarterly. They are secured against the company's royalty and loan investment portfolio. The net proceeds will finance renewable and sustainable energy projects aimed at reducing greenhouse gas emissions. The company paid a $45,500 advisory fee and issued 45,500 warrants exercisable at $0.50 for 36 months.

RE Royalties reported Q3 2024 financial results with quarterly revenue of $1,692,000, down 12% year-over-year. The decrease was attributed to lower finance income due to early loan repayments. Year-to-date revenue was $6,157,000, down 14% compared to the previous year.

Q3 2024 EBITDA increased to $1,038,000, showing significant improvement from the prior year. The company reported a quarterly net loss of $195,000, better than the $2,769,000 loss in Q3 2023. Cash position stood at $18,442,000 as of September 30, 2024.

Notable developments include completion of Green Bond placements raising $5,879,000 CAD and US$340,000, new agreements with Abraxas Power for Maldives solar projects ($10M facility), SolarBank for battery storage systems ($3M loan), and Alpin Solar for the Sol Aurora Project in Alberta.

RE Royalties has entered into a secured loan agreement with Alpin Solar SA to support a $6.3 million letter of credit for a 200 MWAC solar project in Sturgeon County, Alberta. The project will generate 386,000 MWh of clean electricity annually, powering approximately 57,000 homes and reducing greenhouse gas emissions by 227,700 tonnes of CO2 equivalent. The loan features a 13% annual interest rate with a 12-month term, plus a permanent royalty of $0.25 per MWh of energy production from the project.

RE Royalties has entered into a loan and royalty agreement with SolarBank 's subsidiary, providing a CAD $3.0 Million secured loan for three 4.99 MW Battery Energy Storage System projects in Ontario. The 12-month loan carries an 11% annual interest rate and includes a 0.40% royalty on gross revenues for the projects' 20-year lifetime, reducible to 0.25% if repaid within six months. The projects have long-term contracts with Ontario's Independent Electricity System Operator under the E-LT1 program. The borrower holds 50% interest in the projects, with First Nations communities holding the remaining 50%.

RE Royalties announced the distribution of Meeting Materials for its Annual General Meeting scheduled for December 13, 2024, at 10:00 am PST in Vancouver. Due to a Canada Post labour dispute, shareholders may experience delivery delays. Meeting materials are available on SEDAR+ and the company's website. Registered shareholders can obtain proxy form control numbers from Computershare, while those holding shares through intermediaries should contact their brokers. The voting deadline is set for December 11, 2024, at 10:00 am Pacific Time.

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 has announced the second tranche closing of its Series 4 senior secured green bonds private placement, raising $1,725,000 CAD and US$140,000. Combined with the initial closing, the total raised amounts to $5,879,000 CAD and US$340,000. The Green Bonds mature on August 29, 2029, offering a 9% annual interest rate paid quarterly. The proceeds will finance renewable and sustainable energy projects aimed at reducing greenhouse gas emissions. The bonds are secured against the company's royalty and loan investment portfolio.