Revolve Renewable Power Corp. (TSXV: REVV) (“Revolve” or the “Company”) is pleased to announce further to the news release dated September 15, 2022, 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. The 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.”