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Acquisition is Milestone for B.C. Energy Co.
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Now it is reaping the benefits of the strategic transaction, noted a Water Tower Research report.

Revolve Renewable Power Corp.'s (TSXV:REVV;OTCQB:REVVF) acquisition of WindRiver Power just closed, reported Shawn Severson, Water Tower Research analyst, in a February 21 research note. WindRiver, based in Canada, owned, operated, and developed wind and hydro projects in British Columbia and Alberta.

"This acquisition is a key milestone in Revolve's stated strategy of utilizing both a development strategy and acquiring operating assets," Severson wrote. The company is working toward becoming "a dedicated renewable independent power producer focused on long-term recurring revenue and cash flow."

Gained and Total Assets

Severson reviewed all of Revolve's assets post-acquisition, including ones in operation, in development, and under construction.

Through the transaction, Revolve gained three operating projects: Box Springs, Hunter Creek Hydro, and Sakwi Creek Hydro. Together, they generated 28,463 megawatt hours of power energy in H1/23. During the same period, they yielded gross revenue of CA$3.17 million (CA$3.17M), of which WindRiver's portion was CA$0.9M.

Including these newly added projects, Revolve now owns, on a net basis, 12.33 megawatts (12.33 MW) worth of operating assets, encompassing battery storage and solar, wind, and hydro power generation. All, in Canada and Mexico, are under long-term power purchase agreements.

Also, from WindRiver, Revolve gained the 15 MW Tahimi Creek hydro project (70% ownership) and the 75 MW Kinskuch Lake hydro project (87.5% ownership), both in British Columbia. At varied stages, these are slated to be ready to build in the 2025-2026 time frame.

In total, Revolve now has more than 3 gigawatts worth of development projects in all three North American countries.

"Revolve has set an ambitious goal to convert 40 MW per year over FY24 and FY25 from its distributed generation development portfolio into projects under construction or operational status," noted Severson.

As for projects under construction, the renewable energy firm has two, totaling 3.45 MW. One is a 3 MW combined heat and power project, and the other is a 450-peak kilowatt rooftop solar project. Both are expected to be up and running later this year.

WindRiver's outstanding shares were included in the acquisition.

Financial Aspects of Deal

The deal cost Revolve CA$4.85M, Severson reported. To cover the amount, it used a CA$3.97 secured loan from RE Royalties and cash on its balance sheet.

Revolve is also responsible for contingent payments to WindRiver, up to CA$14M based on project milestones, and up to CA$5.7M from previously sold assets.  

Revolve is currently trading at about CA$0.33 per share.

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Important Disclosures:

  1. Revolve Renewable Power Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Revolve Renewable Power Corp. 
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Water Tower Research, Revolve Renewable Power Corp., February 21, 2024

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