CVW Sustainable Royalties Announces the Execution of a Royalty Agreement and Strategic Partnership with Relocalize Inc.

Executive Summary

• CVW Sustainable Royalties Inc. entered a gross‑revenue royalty agreement with Relocalize Inc., providing $4.0 million of up‑front capital for a 25% royalty on the first two commercial ice‑manufacturing facilities and additional royalties on future facilities.
• The Company also secured an option to invest up to $22.5 million in up to 13 further Relocalize facilities, with senior pari‑passu security on each asset.
• Upon receipt of aggregate payments equal to 1.25× the initial investment ($5 million), the royalty rate on the first two facilities will step down to 15% for their lifetimes.

Key Details

• Initial Investment: $2.5 million for a 25% gross‑revenue royalty on Relocalize’s Plant City, Florida facility (co‑located with Winn‑Dixie).
• Second Investment: Up to $1.5 million contingent on operational and commercial milestones for a second facility in Montreal, Quebec, also at a 25% royalty rate.
• Additional Royalties: 1.25% royalty on Relocalize’s next eight facilities (after Plant City) plus an extra 0.75% after the Second Facility, totaling a 2% royalty on the next eight commercial sites.
• Future Investment Option: Right to invest up to $22.5 million in up to 13 additional facilities, receiving the same royalty structure and senior security interests.
• Royalty Step‑Down Clause: Once CVW receives $5 million (1.25× the initial $4 million) in aggregate payments from the Initial Royalty Interest, the royalty on the first two facilities reduces to 15% for their remaining life.
• Right of First Refusal: CVW holds a 20‑year right of first refusal on any future royalty financing for Relocalize’s facilities.
• Strategic Rationale: Provides investors exposure to sustainable commodity‑linked returns while supporting decentralized, low‑emission ice production and cold‑pack markets.
• Operational Milestones: Plant City facility is currently being commissioned for The Winn‑Dixie Company; the Second Facility will target cold‑pack supply for meal‑kit and ready‑to‑eat markets.

Notable Quotes

“Our strategy is to utilize the royalty model to provide investors with a unique and attractive risk‑adjusted way to invest in companies that produce commodities and commodity‑like products driving both environmental and economic sustainability.” – Akshay Dubey, CEO, CVW Royalties

“This transaction … has the potential to be transformational for Relocalize. The immediate funding will accelerate our commercialization efforts…” – Wayne McIntyre, Founder & CEO, Relocalize