RE Royalties cancels $3.4M financing after repayments

Executive Summary

• RE Royalties Ltd. has cancelled its previously announced non-brokered private placement offering of up to 10,625,000 units due to early loan repayments from clients and recent share price volatility.
• The cancellation allows the company to retain capital for redeployment into new investment opportunities and to meet upcoming Series 1 green bond maturities.
• Management stated that proceeding with the offering was not in the best interest of shareholders given the current capital position and market conditions.

Key Details

• Offering Cancellation: The company cancelled the non-brokered private placement offering of up to 10,625,000 units.
• Original Terms: The cancelled offering was priced at 32 cents per unit, targeting aggregate gross proceeds of up to $3.4 million.
• Security Structure: Each unit originally comprised one common share and one common share purchase warrant.
• Warrant Terms: Each warrant was exercisable into one common share at an exercise price of 45 cents per warrant for a period of 36 months.
• Reason for Cancellation: The decision was driven by early repayment of loans from clients and recent volatility in the company's share price. Management noted no material change to the underlying business but cited uncertainty regarding the cause of the volatility.
• Capital Strategy: The company is now well-capitalized to redeploy the repaid capital into new investment opportunities currently under due diligence and to satisfy the maturity of upcoming Series 1 green bonds.

Notable Quotes

• "We would like to thank investors for their interest in our offering. Given the timing of the early investment repayments, the company is well capitalized in redeploying this capital into new investment opportunities that are currently under due diligence, and in meeting the maturity of the upcoming Series 1 green bonds. We will continue to investigate and pursue strategic options to unlock shareholder value." — Bernard Tan, Chief Executive Officer