RE Royalties enters loan, royalty agreement with SolarBank for C$3M

RE Royalties has entered into an agreement with Solar High Yield Projects #1, a wholly-owned subsidiary of SolarBank (SUUN)Corporation. Under this agreement, RE Royalties will provide a secured loan of C$3M. The Loan will be used for the continued development and construction of three 4.99 MW Battery Energy Storage System projects to be located in Ontario, Canada. The Projects have long term contracts with the Ontario Independent Electricity System Operator under the E-LT1 program. The Loan will have a 12-month term at an interest rate of 11% per annum. As a condition of the Loan, a 0.40% royalty on the gross revenues generated for the life of the Projects estimated at 20 years has been granted to the Company. The royalty rate will be reduced to 0.25% if the Loan is repaid within the first six months. The Projects are owned by two entities, 1000234763 Ontario Inc. and 1000234813 Ontario. The Borrower has a 50% interest in the ProjectCos, with the remaining 50% held by a partnership formed by First Nations communities in Ontario. The Borrower also has varying ownership interests ranging from 24.95% to 100% in 52 operating solar projects in Ontario, with a total gross capacity of 19.9MWDC. The Loan is secured by a first ranking security interest over all assets of the Borrower, except for its shares in the capital of the ProjectCos. SolarBank’s interest in the Borrower and ProjectCos was acquired as part of the acquisition of Solar Flow-Through Funds Ltd., a previous client of the Company, that closed in July 2024.