(TheNewswire)
JANUARY 27, 2022 - TheNewswire - TORONTO, ON -Star Royalties Ltd. (the “ Company ” or“ Star Royalties ”) (TSXV:STRR ) ( OTC:STRFF), through its wholly-owned, pure-green subsidiary,Green Star Royalties Ltd. (“ Green Star Royalties ”), is pleased toannounce the execution of a definitive royalty purchase agreement andgross revenue royalty agreement with MOBISMART Mobile Off-Grid Power& Storage Inc. (“ MOBISMART ”) to acquire a 2.5% gross revenueroyalty (the “ Royalty ”) on all current and future grossrevenues and any potential business divestment revenues generated byMOBISMART for a total consideration of C$300,000 in cash.
Investment Highlights
-
Operating business inCanada: MOBISMART is a private, operatingcompany headquartered in Toronto, Canada, that specializes in mobilesolar power generation systems with integrated batterystorage.
-
Reduces reliance on diesel for netzero objectives: MOBISMART’s integratedproduct offering includes mobile solar power trailers and containerswith leading-edge power electronics and remote monitoring. MOBISMARTdelivers to a wide range of power generation requirements whilereducing the need for traditional diesel power generation and itsassociated CO emissions.
-
Versatile productapplication: MOBISMART’s product lineup can bedeployed virtually anywhere, including construction sites, disasterrelief situations, military operations, mining camps, as well as attelecom towers and 5G infrastructure in urban, rural and remotelocations.
-
Innovative powersolutions: Additional high-growth areas includeintegrated power solutions for solar conversion of refrigerationvehicle fleets, e-fleet fast-charging stations and vertical axis windturbines.
-
Key relationships: MOBISMART benefits from working relationships with industryleaders such as Siemens AG, Mitsubishi Heavy Industries Ltd., SonoMotors GmbH, Victron Energy B.V., and Schneider Electric SE.
Alex Pernin, Chief Executive Officer of Star Royalties,commented: "We are proud to be supporting a greener future byinvesting in local and high-growth technology company, MOBISMART.Their products reduce or offset CO 2 emissions in environmentally-sensitive areas by displacingdiesel usage, which alone is a C$70 billion global market. Inaddition, their innovative business model is well positioned forhigh-growth sectors such as integrated power solutions, solarconversion of refrigeration vehicles and e-fleet fast-chargingstations. The C$10 million royalty buyback provision reflects thisgrowth potential. This green investment represents near-term cash flowfrom a top-tier jurisdiction, and we look forward to MOBISMART growingrapidly into a major off-grid power technology company across variousindustries and sectors.”
Transaction Terms
-
Green Star Royalties has agreed to acquire the Royaltyfrom MOBISMART on their current and future gross revenues and anypotential business divestment revenues for a total consideration ofC$300,000 in cash.
-
The Royalty has a term of 15 years and Green StarRoyalties has granted MOBISMART an initial payment holiday on theRoyalty, where the first payment of the Royalty, calculated from theclosing date, will occur no later than January 2023.
-
Green Star Royalties has also granted MOBISMART aroyalty repurchase provision, whereby MOBISMART, at its sole electionand in connection with a potential go-public event, will have theright to repurchase the Royalty in its entirety for C$10 million incash, or partially on a pro rata basis. MOBISMART, at its soleelection and only after five years have elapsed since the completionof its potential go-public event, will have the additional right torepurchase any part of the Royalty not already repurchased during itsgo-public event, on the same pro rata basis.
MOBISMART
Founded in 2013 in Toronto, Canada, MOBISMART is aninnovator of advanced, mobile and portable, solar power generationsystems that can be easily deployed to construction and naturaldisaster sites and other urban, rural and remote locations needingoff-grid power. MOBISMART’s various power generation and batterystorage solutions, including trailerized and containerizedsystems delivering a range of powerrequirements, work to reduce the reliance on CO 2 -emitting diesel generation, fill thegap of compromised on-grid power sources, and support 24/7 missioncritical needs.
MOBISMART manufactures itssystems in North America, leveraging ISO 9001-certified facilities inOntario and Quebec. This local control over manufacturing allows forbetter quality optimization and timely solution delivery, removing anypotential supply chain and quality-related issues associated withoffshore manufacturing. MOBISMART’s renewable energy rootsrun deep as the company’s founders are second-generation solarentrepreneurs – the Efston family pioneered the integration of solarenergy systems more than 50 years ago. For more information, visitmobismart.ca.
MOBISMART: Product Lineup
Mobile, solar power generation systems with integratedbattery storage
MOBISUN SPARK Single-Axle MOBISUNFLARE Dual-Axle
4-Panel Solar Power Generator 8-Panel Solar PowerGenerator
Portable, solar power generationsystems with integrated battery storage
MOBIPOWER Containerized Solar Power Generator
and Battery Storage (sizes range from 10ft – 40ft)
CONTACT INFORMATION
For more information, please visit our website at starroyalties.com or contact:
Alex Pernin, P.Geo. Dmitry Kushnir,CFA
Chief Executive Officer and Director Head ofInvestor Relations
apernin@starroyalties.com dkushnir@starroyalties.com
+1 647 801 3549 +1 647 287 3846
ABOUT STAR ROYALTIES LTD.
Star Royalties Ltd. is a precious metals and greenroyalty and streaming investment company. The Company created theworld’s first carbon negative gold royalty platform and offersinvestors gold exposure with an increasingly negative carbonfootprint. The Company’s objective is to provide wealth creationthrough accretive transaction structuring and asset life extensionwith superior alignment to both counterparties andshareholders.
CAUTIONARY NOTE REGARDING FORWARD-LOOKINGINFORMATION
Certain statements in this news release may constitute"forward-looking statements", including those regarding thestrategies and business plans of the Company. Forward-lookingstatements are statements that address or discuss activities, eventsor developments that the Company expects or anticipates may occur inthe future. When used in this news release, words such as"estimates", "expects", "plans","anticipates", "will", "believes","intends" "should", "could","may" and other similar terminology are intended to identifysuch forward-looking statements. Forward-looking statements are madebased upon certain assumptions and other important factors that, ifuntrue, could cause the actual results, performances or achievementsof Star Royalties to be materially different from future results,performances or achievements expressed or implied by such statements.Forward-looking statements should not be read as a guarantee of futureperformance or results and will not necessarily be an accurateindication of whether or not such results will be achieved. A numberof factors could cause actual results, performance or achievements todiffer materially from such forward-looking statements, including,without limitation, changes in business plans and strategies ofMOBISMART, the ability of MOBISMART continue operations and to expandoperations, market conditions, demand, supply and pricing forcomponent parts of power generation and storage units, best use ofavailable cash, risks inherent to off-grid power generation andstorage companies, discrepancies between actual and estimated revenue, regulatory restrictions, activities by governmentalauthorities (including changes in taxation), currency fluctuations,the global social and economic climate, natural disasters and globalpandemics, including COVID-19, dilution, and competition. These risks,as well as others, could cause actual results and events to varysignificantly. Accordingly, readers should exercise caution in relyingupon forward-looking statements and the Company undertakes noobligation to publicly revise them to reflect subsequent events orcircumstances, except as required by law.
Copyright (c) 2022 TheNewswire - All rights reserved.