Arizona Tribune - RE Royalties Announces up to a USD $9.0 Million Portfolio-Level Royalty Investment with Solaris Energy Inc.

The first portfolio consists of 15 projects including 9 under construction with several nearing operation, and 6 in development, located across California, Maine, Delaware, New Hampshire and Colorado ("Portfolio 1"). The second portfolio comprises 9 more projects, the final composition of which may evolve as the projects advance ("Portfolio 2"). The transaction represents the acquisition of a portfolio level royalty on a diversified portfolio of DG solar assets and marks the exciting beginning of a new partnership between the two parties.

The Royalty Purchase for Portfolio 1 totals USD $4.8 million and will be funded through multiple advances as individual projects reach key development and construction milestones. At closing, the Company will fund the first advance of USD $3.0 million. The remaining USD $1.8 million is expected to be funded by Q2 2026, subject to the satisfaction of applicable conditions. The Royalty Rate will be adjusted at each advance to target a pre-agreed minimum return based on a 25-year period. The Royalty will continue past 25 years for the remaining life of the Portfolio 1 projects.

The Royalty Purchase for Portfolio 2 is still subject to the completion of due diligence to the satisfaction of the Company, other customary closing conditions and is expected to occur later this year.

Peter Leighton, COO of RE Royalties, commented, "This transaction reflects RE Royalties' continued focus on partnering with renewable energy developers and acquiring royalty interests on diversified, cash-generating clean energy assets and near term operating projects. Distributed generation solar remains a compelling segment of the market, and we are delighted to support Solaris as they continue to expand their US solar portfolio."

"This equity infusion from RE Royalties puts Solaris Energy in a unique position to leverage our existing capital partnerships with our rapidly growing project pipeline to simplify solar project finance," said Solaris Energy CEO Nick Perugini. "Sponsor equity is the most difficult capital to raise, and we're thrilled to join with the RE Royalties team to strengthen our relationships with internal sponsor equity, tax equity, and lender partners to complete capitalization of our strong portfolios of distributed generation and solar plus storage projects."

This investment represents an opportunity for RE Royalties to enter into a framework agreement to acquire a series of long-term royalties, on projects being developed in the commercial and industrial ("C&I") DG space. Solaris is a renewable energy developer that has had success developing, financing, building, and operating hundreds of solar projects and currently has a large pipeline of potential projects with an estimated value of more than USD $400 million.

About Solaris Energy Inc.

Solaris Energy Inc. is a U.S. based solar developer and asset manager headquartered in Fort Collins, Colorado. Founded in 2008, Solaris initially operated as a non-profit organization, The Atmosphere Conservancy, aimed at helping non-profits adopt solar energy solutions. In 2010 Solaris Energy, Inc. was established and operates as a certified B Corporation and Public Benefit Corporation providing experienced, value-driven commercial and community solar and storage development, finance, and long-term asset management services across the United States.

About RE Royalties Ltd.

RE Royalties Ltd. acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The Company currently owns over 100 royalties on solar, wind, hydro, battery storage, energy efficiency and renewable natural gas projects in North America, South America and Asia. The Company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.

For further information, please contact:

Media Contacts:

RE Royalties Ltd.
Talia Beckett, VP of Communications and Sustainability
T: (778) 374‐2000
E: [email protected]
www.reroyalties.com

Solaris Energy, Inc.
Shaun Laughlin, VP, Strategic Partnerships
T: (303) 883-9003
E: [email protected]
www.solarisenergy.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor any other regulatory body or securities exchange platform, accepts responsibility for the adequacy or accuracy of this release.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Forward Looking Statements

This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and within the meaning of Canadian securities laws. Forward looking information includes the completion of the Loan and is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the Company's financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities including financing. The reader is referred to the Company's most recent filings on SEDAR as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com.

SOURCE: RE Royalties Ltd.

View the original press release on ACCESS Newswire

A.Clark--AT