ReVolve Renewable Power (TSXV: REVV) signs definitive agreement to acquire Centrica Business Solutions Mexico - PR Newswire

ReVolve Renewable Power (TSXV: REVV) signs definitive agreement to acquire Centrica Business Solutions Mexico – PR Newswire

  • ReVolve’s transition from a developer of renewable energy projects to an independent energy producer with recurring revenue and cash flow.
  • It aligns with and supports the company’s recent strategic move into the distributed generation market and provides a solid platform for growth going forward.
  • Adds 2.8 MW portfolio of operational distributed generation assets in a . format Mexico The last 3 megawatt asset is under construction and is expected to be operational by the end of 2022.
  • For a cash advance of 33,000,000 Mexican pesos to be paid upon completion of the transaction.
  • The cash consideration is financed through a combination of cash on hand and new 1.6 million Canadian dollars A two-year loan facility is provided by Real Estate Equity (TSXV: RE).

Vancouver, British ColumbiaAnd the 26 May 2022 /PRNewswire/- ReVolve Renewable Power Corp. (TSXV: REVV) (“Revolve“or the”a company“), signed a definitive purchase agreement (“Purchase Agreement“) to acquire 100% of the share capital of Centrica Business Solutions Mexico SA de CV (“)CBS Mexico)a Mexican corporation and subsidiary of Centrica PLC (LON: CLA) for 33,000,000 Mexican pesos (“”acquisitionCBS Mexico Participate in the distributed generation market in Mexico Focuses on the design, installation and commissioning of a range of different distributed generation solutions/projects located on the premises of different industrial clients.

The acquisition, once completed, will immediately add a base of operational projects and recurring revenue to the newly created distributed generation division “ReVolve Renewable Business Solutions” as announced on 26The tenthApril 2022. This division was created to target generation projects distributed with clients across a range of different industries in the United States and Mexico. These projects include rooftop solar projects, battery storage and energy efficiency projects up to 5MW located on customer premises. The company’s strategy is to develop, build and finance these projects and will enter into long-term (up to 10 years) power purchase agreements to sell electricity from the projects with core customers.

(Link to company profile April 26The tenth2022 press release, also available under the company profile on SEDAR at the link www.sedar.com:https://money.tmx.com/ar/quote/REVV/news/617702864972 2935 / ReVolve_Renewable_Power_announce_establishment_of_new_division_to_focus_on_distributed_generation_market_in_the_US_and_Mexico)

Acquisition overview

  • Revolve has agreed to pay Centrica MX $33,000,000 to purchase 100% of the issued and outstanding share capital of CBS Mexico subject to standard working capital adjustments upon completion;
  • CBS Mexico assets to be acquired include six (6) operational rooftop solar projects and one (1) operational combined heating and power project with a combined capacity of 2.85 MW ( Operational projects.). The energy generated from these projects is sold under a number of fixed-price PPAs with the industrial customers located in them Central Mexico With an average residual period of about 8 years. Operational projects were run during the period from 2019 to 2021.
  • Operating projects are expected to generate revenues and EBITDA in excess of its equivalent 400,000 USD And the 300,000 USD Annually respectively, please refer to the currency note below.
  • In addition to these projects, CBS Mexico’s assets also include (1) a 3 MW heating and power joint venture ( “building project”), which has been installed at an industrial user site, has completed pre-operation and is awaiting receipt of final permits before commencement of commercial operations and (ii) cash and inventory. Once commissioned, the power generated from the construction project will also be sold under a fixed-rate 10-year power purchase agreement.
  • The acquisition is being completed on a debt- and liability-free basis and CBS Mexico is not expected to have any employees upon completion.
  • The acquisition is subject to customary closing terms and other terms set forth in the purchase agreement. Subject to meeting these conditions, the acquisition is expected to close within the next 45 days. Conditional approval has been received from the TSX Venture Exchange (“TSXV”) whereby the acquisition is a “Reviewable Acquisition” in accordance with Policy 5.3 of the TSXV. Completion of the acquisition is subject to final approval by TSXV.

Finance

In conjunction with the signing of the purchase agreement, the company also signed financing agreements with RE Royalties Ltd (TSXV: RE) to provide 1.6 million Canadian dollars A secured loan to partially finance the acquisition. The financing agreements consist of a secured loan agreement and a franchise agreement between ReVolve and RE Equity.

The secured loan will be withdrawn as part of the completion of the acquisition and will have a term of 24 months. It will be payable at maturity, and carries 10% interest on funds withdrawn, with interest payable on a quarterly basis during the term. The company will pay the real estate equity for a financing fee of 1.5% of the secured loan amount upon signature and final repayment of the loan. The secured loan will be secured on certain assets of the company.

The Company has also entered into an equity agreement with Renewable Energy Equity, under which it will receive variable equity ranging from 1% to 5% over the total revenue generated by a number of operating projects for the duration of the respective PPAs. operational project.

The company and RE Royalties expect to collaborate on more distribution generation projects as the company looks to continue the strong growth of this segment of its business.

Steve DaltonThe CEO of ReVolve said:We are very excited about the opportunity presented by the acquisition. It will rapidly track the company’s strategy for the distributed generation market while transitioning the business from a purely development company to an independent power producer that generates electricity, revenue and cash flow. We also look forward to a broader partnership with the RE Royalties team as we look to develop and build a pipeline of distributed generation assets in the United States and Mexico over the course of this year and beyond.”

coins

CBS Mexico generates revenue in Mexican peso. For ease of reference, all dollar amounts mentioned here refer to US dollars. The following rates have been used where applicable and are set in US dollars: USD/MEX – 0.049.

About ReVolve Renewable Energy

ReVolve Renewable Power Corp. (www.revolve-renewablepower.com) engaged in the development of utility-scale renewable energy generation projects in North Amarica With a particular focus on wind, solar and battery energy storage technologies. The company also recently established ReVolve Renewable Business Solutions, a division dedicated to developing and operating 20 MW of distribution generation projects and renewable energy sub-projects in the United States and Mexico.

The company was established in 2012 and since then has successfully built a variety of projects across different renewable energy technologies in both the US and Mexican markets. Its current portfolio is 3.3 gigawatts (“GW”) of projects under active development and another 1 GW of establishment opportunities, which are in the process of transitioning to pipeline in the near term.

ReVolve is rapidly expanding its pipeline and development activities in the US and is targeting an active pool of up to 3GWs in development by the end of 2022 in addition to a 2GW target for Mexico.

Forward-looking information

Although ReVolve believes, in light of the experience of its officers and directors, of current conditions, expected future developments and other factors considered appropriate, that the expectations reflected in this forward-looking information are reasonable, it should not be relied upon unnecessarily because ReVolve can provide no guarantee that they They will prove themselves. When used in this press release, the words “estimate,” “project,” “believe,” “expect,” “intend,” “expect,” “plan,” “expect,” “may,” “should,” and negative Which words or such variations therein or similar terms are intended to identify forward-looking statements and information. The forward-looking statements and information contained in this press release include information regarding the business plans of ReVolve and ReVolve’s management’s expectations regarding the growth and performance of its business in United State And the Mexico, including the planned megawatt capacity of its projects; its expansion into the distributed generation market; potential opportunities in the distributed generation market; completeness and timing Develop its planned portfolio of distributed generation projects; completion of the transaction, including final approval of the transaction by TSXV; potential revenue generated from CBS Mexico; The company plans to develop, build and finance solar energy projects, battery storage, and rooftop energy efficiency up to 5 megawatts, and enter into long-term power purchase agreements to sell electricity from projects with core customers. This data and information reflects the current view of ReVolve and/or ReVolve, respectively.

The forward-looking statements in this press release are based on current expectations, estimates, projections and assumptions, taking into account the Company’s experience and perception of historical trends, and include, but not limited to, projections, estimates, projections and assumptions regarding the extent of regulations relating to the Company’s projects and ReVolve’s ability to continue as a going concern. risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements and information, including but not limited to: the effects of weather, disasters and public health crises, including COVID-19; availability of labor; disruptions in the company’s supply chains; Changes in the regulatory environment, including the interpretation of production tax credits; armed hostilities and geopolitical conflicts; Failure to obtain necessary regulatory approvals in a timely manner, or not at all; risks related to the development and possible development of the company’s projects; conclusions of economic evaluations. changes in project parameters as plans continue to be improved; Availability of tax incentives in connection with the development of renewable energy projects and the sale of electric energy; In addition to those discussed in the sections on risk factors that are discussed in the Company’s ongoing disclosure files on SEDAR. Such statements and information reflect ReVolve’s current view. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance, achievements or other future events to differ materially from any express or implied future results, performance or achievements. Such forward-looking statements.

The forward-looking information contained in this press release represents ReVolve’s expectations as of the date of this press release, and is therefore subject to change after that date. Readers should not attach undue importance to forward-looking information and should not rely on such information as of any other date. ReVolve does not undertake to update this information at any particular time except as required by applicable laws.

Neither TSX Venture Exchange nor the Regulatory Services Provider (as defined in the TSX Venture Exchange policies) accept responsibility for the adequacy or accuracy of this release.

SOURCE ReVolve Renewable Power Corp

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