Revolve Completes Project Financing with RE Royalties
Vancouver, BC, October 26, 2022 – Revolve Renewable Power Corp. (TSXV:REVV) (“Revolve” or the “Company”) is pleased to announce further to the news release dated September 15, 2022 (https://money.tmx.com/en/quote/REVV/news/Revolve_Grows_its_Distributed_Generation_Portfolio) that it has a signed financing agreement with RE Royalties Ltd. ( TSXV:RE) for the provision of a C$1.86m secured loan (the “Secured Loan”).
The Secured Loan will be used to partly fund the Company’s first battery storage system (or “BESS”), a 3.2MWh system that will be installed at the site of a major hotel chain in Cancun, Mexico. Installation works for the project have already begun and it is expected to be fully commissioned during Q1 2023.
The financing agreement consists of a secured loan agreement and a royalty agreement between Revolve and RER.
The first tranche of the Secured Loan has already been drawn down with the remaining balance to be drawn down subject to certain project related milestones. The Secured Loan will have a term of 24 months and will be repayable at maturity. Interest of 12% is applied on drawn funds, with interest payable on a quarterly basis during the term.
The Company will pay RE Royalties a financing fee of 2% of the Secured Loan amount. The Secured Loan will be secured by certain assets of the Company. The Company will also enter into a royalty agreement with RER under which RER will receive a royalty of 5% on gross revenues generated by the Project for the term of the ESA (“Energy Services Agreement”).
Eric Hickert, CEO of Revolve Business Solutions commented, “We are delighted to close a further loan facility with RE Royalties for our first BESS project. We are excited by the growing momentum behind our distribution generation business and look forward to working with experienced funders such as RE Royalties as we secure further new projects in the months ahead.”
Revolve was formed in 2012 to capitalize on the growing global demand for renewable power. Revolve develops utility-scale wind, solar and battery storage projects in the US and Mexico with a portfolio of c.3,600MW under development. The Company has a second division, Revolve Renewable Business Solutions which installs and operates sub 20MW “behind the meter” distributed generation (or “DG”) assets. Revolve Renewable Business Solutions currently has an operating portfolio of 2.85MW with an additional 6.2MW under construction phase.
Revolve has an accomplished management team with a demonstrated track record of taking projects from “greenfield” through to “ready to build” (or “RTB”) status and successfully concluding project sales to large operators of utility-scale renewable energy projects. To-date, Revolve has developed and sold over 300MW of projects.
Going forward, Revolve is targeting 5,000MW of utility-scale projects under development in the US and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating distributed generation assets.
For further information contact:
Steve Dalton, CEO
Phone: +1 778-885-5550
Forward Looking Information
Although Revolve believes, considering the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Revolve can give no assurance that they will prove to be correct. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the business plans of Revolve and Revolve’s management’s expectation on the growth and performance of its business in the United States and Mexico, including the planned MW capacity of its projects; its expansion into the distributed generation market; potential opportunities in the distributed generation market; the completion and timing of the development of its planned portfolio of distributed generation projects; the completion of the Transaction, including final approval of the transaction by the TSXV; potential revenues and cashflows generated from its DG division; and the Company’s plans to develop, construct and finance rooftop solar, battery storage and energy efficiency projects of up to 5MW and enter into long term power purchase agreements for the sale of electricity from the projects with the underlying customers. Such statements and information reflect the current view of Revolve and/or Revolve, respectively.
The forward-looking statements contained in this news release are based on current expectations, estimates, projections and assumptions, having regard to the Company’s experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to the extent of regulations pertaining to the Company’s projects and Revolve’s ability to continue as going concern. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information, including but not limited to: the effects of weather, catastrophes and public health crises, including COVID-19; labour availability; disruptions to the Company’s supply chains; changes to regulatory environment, including interpretation of production tax credits; armed hostilities and geopolitical conflicts; failure to obtain necessary regulatory approvals in a timely fashion, or at all; risks related to the development and potential development of the Company’s projects; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; the availability of tax incentives in connection with the development of renewable energy projects and the sale of electrical energy; as well as those factors discussed in the sections relating to risk factors discussed in the Company’s continuous disclosure filings on SEDAR. Such statements and information reflect the current view of Revolve. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
The forward-looking information contained in this press release represents the expectations of Revolve as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Revolve does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.