Royalty North Partners Ltd.
TSX VENTURE : RNP

Royalty North Partners Ltd.

March 21, 2017 14:59 ET

Royalty North Enters Into Loan Agreement With SunSystem Technology

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 21, 2017) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

Royalty North Partners Ltd. (TSX VENTURE:RNP) ("RNP" or the "Company") is pleased to announce that it has entered into a new loan agreement (the "Agreement") with SST Construction, LLC ("SunSystem" and, together with its affiliates, the "SunSystem Group"), a leading provider of operations and maintenance (O&M), engineering, procurement and construction (EPC) and asset management services in the solar industry.

Under the terms of the Agreement, RNP will loan a total of US$5,000,000 (the "Loan") in two tranches to SunSystem. The previously announced US$600,000 funding by RNP to SunSystem under the unsecured promissory note (the "Promissory Note") issued on March 13, 2017 (the "Promissory Note Issue Date") shall be deemed to be the initial advance (the "Initial Advance") under the Agreement and any outstanding interest accrued under the Promissory Note from the Promissory Note Issue Date to the date of signing of the Agreement is waived by RNP. The second tranche (the "Second Advance") of US$4,400,000 will be advanced within 60 days of the date of signing of the Agreement subject to, among other things, the successful completion of RNP's due diligence review and the receipt of all authorizations, including receipt of TSX Venture Exchange approval, required in connection with the transaction. At the time of the Second Advance the Promissory Note will be cancelled and the total amount of the Loan will be evidenced by the Agreement.

The Loan will be repaid by way of monthly loan payments calculated on the gross sales of SunSystem. The initial loan payment rate will be 2.25% of gross sales until the Loan has been repaid at which point reduced royalty rates will be payable thereafter. SunSystem has guaranteed minimum loan payments of US$700,000 per year for the first three years. The proceeds of the Loan will be used for working capital, capital expenditure and to replace existing debt.

On behalf of the Company,

Justin Currie, Chief Executive Officer and Director

About SunSystem Technology

Established in 2013, SunSystem is a leading provider of operations and maintenance (O&M), engineering, procurement and construction (EPC) and asset management services in the solar industry. It derives a high degree of recurring revenue through its O&M businesses and EPC work through its relationships with residential originators and financing platforms. SunSystem has in total 9 office locations with its headquarters in Sacramento, California.

About Royalty North Partners Ltd.

Royalty North Partners is a Vancouver, BC based, TSX-V listed (RNP) company focused on creating a diversified portfolio of cash flowing royalties by providing financing to private businesses operating in the "mid-market". RNP is led by a seasoned board and management team with a successful track record of experience in royalty financing, capital markets transactions and private company operations. RNP is targeting royalty investments in companies with stable cash flow in non-resource based sectors looking for growth/acquisition capital, recapitalization or succession liquidity.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes "forward looking statements" within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. Such forward-looking statements include but are not limited to receipt of requisite regulatory approvals and the completion of the transaction under the Agreement. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required by law.

Contact Information

  • Royalty North Partners Ltd.
    Chris Buss
    Chief Investment Officer and Director
    (604) 628-1101
    www.royaltynorth.com