RE:UP TO $20 MILLION OF SERIES 3 SECURED GREEN BONDS VANCOUVER, BC January 27, 2023 / RE Royalties Ltd. a global leader in renewable energy royalty-based financing, is pleased to announce, further to its news release dated December 9, 2022, regarding the public offering (the "Public Offering") of Series 3 secured green bonds of the Company (the "Green Bonds"), that the Company intends to undertake a non-brokered private placement offering of Green Bonds (the "Private Placement", and together with the Public Offering, the "Offering"), pursuant to which the Company is seeking to raise up to C$8,000,000 of Canadian dollar denominated Green Bonds and US$5,000,000 in U.S. dollar denominated Green Bonds. The Green Bonds will be offered in the principal amounts of C$1,000 or US$l,000. The maximum proceeds the Company intends to raise under the Offering will be C$23,000,000.
The Green Bonds will have a term of five years and bear interest at a rate of 9% per annum, payable quarterly, and will be senior obligations of the Company secured against the Company's portfolio of royalty and loan investments.
In connection with the closing of the Private Placement, the Company has agreed to pay Canaccord Genuity Corp. and Integral Wealth Securities Limited a corporate advisory fee consisting of a to be determined amount of cash and broker warrants (the "Broker Warrants"). Each Broker Warrant will be exercisable into one common share of the Company at an exercise price of $0.75 per common share for a period of 36 months from the date of issuance. All securities issued under Private Placement will be subject to a statutory hold period expiring four months from the date of issuance in accordance with applicable Canadian securities laws.
Net proceeds from the Offering will be utilized to acquire revenue-based royalties and/or provide loans to privately held and publicly traded renewable energy companies. The Company has prepared a Green Bond Framework that is aligned with the International Capital Market Association Green Bond Principles (2018), which framework is available on the Company's website, here.
For further details regarding the Offering, please see the Company's news release dated December 9, 2022.