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Vancouver, BC, August 29, 2022 /PRNewswire/ – Revolving Renewable Energy Corporation (TSXV: REVV) (“Drive“or”Company“) to Centrica Business Solutions Mexico SA de CV (“It is pleased to announce the completion of the acquisition of 100% interest.CBS Mexico) As stated in May 26Th2022. CBS Mexico, one Mexico– A subsidiary of Centrica Plc (LSE:CLA), it owns and operates six distributed generation projects, with a seventh under construction. Mexico.
Access to CBS Mexico offers Revolve:
Revolve acquires distributed generation assets with a recurring revenue stream
- An established and sustainable recurring revenue stream from six operating distributed generation projects ( “Work Projects”) and revenue from one additional distributed generation project expected to be operational during H1 2023. “Construction Project”)
- A total of 2.85 megawatts (“MW”) of operational projects and a construction project of 3MW project capacity are fully constructed, awaiting final approval, and are expected to be operational by H1 2023.
- The operational projects are estimated to generate annual revenue. 400,000 dollars and EBITDA of 300,000 dollars (See currency note below). Once operational, the construction project is expected to generate additional production. 1,000,000 dollars by income and 400,000 dollars EBITDA;
- It also aligns with and reinforces the company’s recent strategic move into the distributed generation market (see Revol News Release). April 26, 2022) and provides a platform for development in the near future.
Mr. Steve DaltonThe CEO of Revolve commented:We are very excited to have completed the acquisition of CBS Mexico. It will accelerate our entry into the distributed generation market while transforming our business from a development company to an independent power producer, generating revenue and cash flow. We look forward to forming a broader partnership with RE Royalties as we develop and create distributed generation assets in the US. Mexico As we continue to transform our pipeline of opportunities into new renewable energy generation capacity and revenues, we will announce new sales contracts.
The acquisition of CBS Mexico immediately provides a solid base of projects and a recurring revenue base for the company’s newly formed Distributed Generation (or “DG”) division, which operates as “Renewable Business Solutions.” This division was established to target distributed projects with clients in a variety of industries, including manufacturing operations and hotel chains located in the United States and Mexico. These projects include up to 5 MW of rooftop solar, battery storage and energy efficiency projects located on customer premises. The company’s vision is to develop, construct and finance projects that enter into long-term (typically 10-year) Power Purchase Agreements (“PPAs”) with the sale of electricity from the projects to customers.
Purchase overview
Revolve paid Centrica PLC cash of MX$29,069,975 or USD 1,424,428 Applying formal adjustments to purchase 100% of the issued and outstanding capital of CBS Mexico May 26Th2022.
- CBS Mexico’s acquired assets include six operational projects with a combined capacity of 2.85MWs. “Work Projects”). Power generated by these projects is sold to industrial customers under a number of fixed price power purchase agreements. Central Mexico The average remaining time is approximately 8 years. The operational projects are awarded in the period from 2019 to 2021.
- The acquired assets are a 3MW combined heat and power (or “CHP”) project (the “Construction Project”), which has been installed at the industrial user’s site, has completed the preliminary service and is awaiting the receipt of final permits before starting commercial operations. The power generated by the construction project will be sold under a fixed price power purchase agreement within 10 years of commissioning.
- It is expected that the operational projects and the construction project will generate a source of income 1,400,000 dollars and EBITDA of 700,000 dollars for one year
Purchase finance
The purchase price is supported by a CDN $1,600,000 With a secured loan, the rest of the purchase price is backed by cash on hand. The financing is a secured loan and a royalty agreement between Revolve and RE Royalties Ltd. The secured loan has a tenure of 24 months and is repaid at maturity and bears interest at 10% quarterly. The Company paid RE Royalties as a finance charge of 1.5% of the outstanding loan amount at the time of signing and amortization of the credit facility. An exit fee of 1.5% will also be charged on the final payment of the loan on the 24th of the due date. The loan is secured by certain assets of the company. In addition, the Company has entered into a royalty agreement, ranging from 1% to 5% of gross revenues for the life of the power purchase agreements for certain operational projects. The Company and RE Royalties expect to work together on additional distribution generation projects as the Company seeks to continue to aggressively grow this segment of the business.
Currency estimation
CBS Mexico generates revenue in Mexican pesos. All dollar amounts are presented in US dollars unless otherwise noted for ease of reference. Where applicable and if the exchange rate is expressed in US dollars per 1 Mexican peso (MX$). 049 USD (US$).
What is a split generation?
Distributed generation (or “DG”) is an approach to providing energy assets, mostly solar and battery technologies, closer to the consumer. The power generation and storage assets can be installed on or near the roof to provide renewable energy and battery storage services directly to the user’s location.
Revolve installs renewable energy and storage systems at customers’ premises at its own expense and sells the renewable energy back to these customers through long-term power purchase agreements (or “PPAs”). The main target markets are large commercial and industrial enterprises, including manufacturing operations and hotel chains that choose renewable energy and want to reduce CO2 emissions.
About the revolver
Revolution was created in 2012 to take advantage of the growing global demand for renewable energy. Revol develops utility-scale wind, solar and battery storage projects in the US. Mexico With a portfolio of 3,700MW under development. The company has a second division, Revolve Renewable Business Solutions, which installs and operates “behind the meter” distributed generation (or “DG”) assets under 20MW. Revolveble Renewable Business Solutions, currently has an operational portfolio of 2.85MW with an additional 3MW under construction.
Revolve has a management team well experienced in taking projects from “Greenfield” to “Ready to Build” (or “RTB”) stage and successfully completing utility scale renewable energy projects for large operators. To date, Revolve has developed and sold over 300 MW of projects.
Going forward, Revolve is targeting 5,000 MW of utility-scale projects in development in the US. MexicoAnd in parallel, its portfolio is growing rapidly with income-generating distributed generation assets.
Forward-looking information
Even if Revolve believes, in light of its officers’ and directors’ experience, current conditions and future developments and other factors that it considers reasonable to expect in this forward-looking information, undue reliance should not be placed on them. Because Revolve offers no proof to prove they are correct. In this press release, the words “estimate”, “project”, “believe”, “anticipate”, “expect”, “anticipate”, “plan”, “predict”, “may” or “should” and the negative or Variations on them or equivalent terminology are intended to identify forward-looking statements and information. The forward-looking statements and information contained in this press release include the business growth and performance expectations of Revol and Revol management’s business plans. America And Mexicoincluding the proposed MW capacity of the projects; expansion into the distributed generation market; Potential opportunities in the segmented generation market; Completion and time Development of a portfolio of proposed distributed generation projects; completion of the transaction, including final approval of the transaction by the TSXV; Potential revenues from CBS Mexico; And the company plans to develop, build and finance rooftop solar, battery storage and energy-saving projects up to 5MW, with long-term purchase agreements with major customers for the sale of electricity from the projects. Such statements and information reflect the current views of Revol and/or Revol, respectively.
The forward-looking statements contained in this news release are based on current expectations, estimates, assumptions and assumptions, taking into account the Company’s experience and understanding of historical trends, and include, but are not limited to, expectations, estimates, assumptions and assumptions. Assumptions regarding the extent of regulations related to the Company’s projects and Revol’s ability to continue as a going concern. Risks and uncertainties that could cause actual results to differ from those anticipated in those forward-looking statements and information include: weather, accidents and public health crises, including COVID-19; labor availability; disruption of the company’s supply chain; changes in the regulatory environment, including interpretation of production tax credits; armed conflicts and geopolitical conflicts; failure to obtain necessary regulatory approvals in a timely manner, or at all; Risks related to the development and potential development of the company’s projects; Conclusion of economic evaluations; Project parameters change as plans evolve; The availability of tax incentives related to the development of renewable energy projects and the sale of electricity; as well as those factors discussed in the sections relating to risk factors described in the Company’s continuous disclosure documents on SEDAR. Such statements and information reflect the current view of Revol. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or other future events to differ materially from any future results, performance or achievements expressed or implied. 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 may accordingly change after such date. Readers should not place undue importance on forward-looking information and should not place undue reliance on such information as of any date. Revolve will not update this information at any time unless required by applicable law.
Neither the TSX Venture Exchange nor the Regulation Service Provider (as defined in the TSX Venture Exchange Policies) accepts responsibility for the adequacy or accuracy of this release.
Source Revolve Renewable Power Corp
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