VANCOUVER, BC / ACCESSWIRE / January 29, 2024 / Revolve Renewable Power Corp. (TSXV:REVV)(OTCQB:REVVF) ("Revolve" or the "Company"), a North American owner, operator and developer of renewable energy projects, is pleased to announce, that on January 5, 2024, it has signed a Power Purchase Agreement ("PPA") for a new 450kWp rooftop solar project (the "Project") in Mexico as part of its growing distributed generation (" or DG") portfolio.
Project Details
- The Project will be installed at the site of a food manufacturing business in Central Mexico and will assist the customer in meeting its sustainability objectives while also reducing its electricity cost.
- Revolve will be the owner and have the responsibility to finance, install and operate the Project.
- A 15-year PPA has been signed between the Company and the customer structured as a fixed price per kWh generated by the Project. The price per kWh is increased annually by inflation.
- An Engineering Procurement Contract (or "EPC") has been signed with a Mexican Corporation, Inventive Power (or "Inventive"), a highly experienced installer and operator of solar photovoltaic (or "PV") and thermal projects in Mexico, to deliver a turnkey solution for the installation and commissioning of the Project. Under this contract Inventive will also be responsible for all scheduled and unscheduled maintenance required for the Project.
- The Project is targeted to be operational in June this year and will add to the recurring revenue base of the Company's distributed generation business.
- The Project is expected to cost approximately C$540,000 to install and commission inclusive of all related financing and transaction costs.
Project Financing
The Project will be financed through a combination of cash on hand and a C$415,000 new secured loan (the "Secured Loan") to be provided by RE Royalties Ltd. (TSXV:RE), (or "RER"). The financing agreements will consist of a Secured Loan agreement and a royalty agreement between Revolve and RER. Finalization of the financing agreements is expected to be completed in the next few weeks.
The Secured Loan will be drawn down per a schedule commencing upon signing of the definitive financing agreements and will have a term of 24 months. It will be repayable at maturity, bear interest at 12% on drawn funds, with interest payable on a quarterly basis during the term. The Company will pay RE Royalties a financing fee of 1% of the Secured Loan amount on signing. The Secured Loan will be secured by certain assets of the Company. The Company will also enter into a royalty agreement with RER under which RER will receive a royalty of 5% on gross revenues generated by the Project for the term of the PPA.
Currency Considerations
All transactions over the course of this contract as well as the Agreement with the installer will be in Mexican Pesos. For ease of reference all dollar amounts have been presented in Canadian. dollars at exchange rate of 1 Mexican Peso (MX$) to 0.079 Canadian dollars (C$).
About Revolve
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, Canada and Mexico with a portfolio of approx. 2,838MW 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 6MW with an additional 3MW under construction phase and 156MW under development.
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 1,550MW of projects.
Revolve is targeting 5,000MW of utility-scale projects under development in the US, Canada and Mexico, and in parallel is rapidly growing its portfolio of revenue-generating DG (distributed generation) assets.
For further information contact:
Steve Dalton, CEO
IR@revolve-renewablepower.com
Or
Sunita Prasad
VP, Corporate Development & Investor Relations
Phone: +1 778-885-5550
IR@revolve-renewablepower.com
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 includes, but is not limited to, statements with respect to 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, Canada 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 financing for the Project, including final approval of the financing for the Project by RER; potential revenues and cashflows generated from its DG division and the Project; 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.
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 and specifically the Project; 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.
Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
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.
SOURCE: Revolve Renewable Power Corp.
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