2023-08-08 09:37:42 ET
- RE Royalties ( OTCQX:RROYF ) has entered into a $3.2M loan and royalty acquisition agreement with Butler Corporation (DBA "Cleanlight"), a manufacturer of mobile solar-battery systems including solar lighting towers, and solar-hybrid battery generators.
- The loan will be drawn in two tranches, with a term of 2 years and an interest rate of 12% per annum.
- As part of the transaction, the Co. acquired a 10-year royalty calculated based on 5% of gross revenues commencing on closing, which reduces to 3% after certain revenue milestones are met.
- Cleanlight has generated ~$4M in annual revenue, with over 550 Solar Towers sold, and has a rental fleet of over 150 units and to date has sold over 850 Solbox units to home-owners and businesses through distribution agreements with large box stores in Latin America.
- The loan facility will provide working capital and finance Cleanlight's expansion into other countries in Latin America.
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RE Royalties enters into $3.2M loan and royalty agreement with Cleanlight