Star Royalties Acquires 2.5% Royalty on Diesel Displacement Technology Company, MOBISMART

  • Posted by Jodi Cassidy
  • On January 27, 2022
  • 0
  • 1 likes

JANUARY 27, 2022, TORONTO, ON – Star Royalties Ltd. (the “Company” or “Star Royalties”) (TSXV: STRR, OTCQX: STRFF), through its wholly-owned, pure-green subsidiary, Green Star Royalties Ltd. (“Green Star Royalties”), is pleased to announce the execution of a definitive royalty purchase agreement and gross revenue royalty agreement with MOBISMART Mobile Off-Grid Power & Storage Inc. (“MOBISMART”) to acquire a 2.5% gross revenue royalty (the “Royalty”) on all current and future gross revenues and any potential business divestment revenues generated by MOBISMART for a total consideration of C$300,000 in cash.

INVESTMENT HIGHLIGHTS

  • Operating business in Canada: MOBISMART is a private, operating company headquartered in Toronto, Canada, that specializes in mobile solar power generation systems with integrated battery storage.
  • Reduces reliance on diesel for net zero objectives: MOBISMART’s integrated product offering includes mobile solar power trailers and containers with leading-edge power electronics and remote monitoring. MOBISMART delivers to a wide range of power generation requirements while reducing the need for traditional diesel power generation and its associated CO2
  • Versatile product application: MOBISMART’s product lineup can be deployed virtually anywhere, including construction sites, disaster relief situations, military operations, mining camps, as well as at telecom towers and 5G infrastructure in urban, rural and remote locations.
  • Innovative power solutions: Additional high-growth areas include integrated power solutions for solar conversion of refrigeration vehicle fleets, e-fleet fast-charging stations and vertical axis wind turbines.
  • Key relationships: MOBISMART benefits from working relationships with industry leaders such as Siemens AG, Mitsubishi Heavy Industries Ltd., Sono Motors GmbH, Victron Energy B.V., and Schneider Electric SE.

Alex Pernin, Chief Executive Officer of Star Royalties, commented: “We are proud to be supporting a greener future by investing in local and high-growth technology company, MOBISMART. Their products reduce or offset CO2 emissions in environmentally-sensitive areas by displacing diesel usage, which alone is a C$70 billion global market. In addition, their innovative business model is well positioned for high-growth sectors such as integrated power solutions, solar conversion of refrigeration vehicles and e-fleet fast-charging stations. The C$10 million royalty buyback provision reflects this growth potential. This green investment represents near-term cash flow from a top-tier jurisdiction, and we look forward to MOBISMART growing rapidly into a major off-grid power technology company across various industries and sectors.”

Transaction Terms

  • Green Star Royalties has agreed to acquire the Royalty from MOBISMART on their current and future gross revenues and any potential business divestment revenues for a total consideration of C$300,000 in cash.
  • The Royalty has a term of 15 years and Green Star Royalties has granted MOBISMART an initial payment holiday on the Royalty, where the first payment of the Royalty, calculated from the closing date, will occur no later than January 2023.
  • Green Star Royalties has also granted MOBISMART a royalty repurchase provision, whereby MOBISMART, at its sole election and in connection with a potential go-public event, will have the right to repurchase the Royalty in its entirety for C$10 million in cash, or partially on a pro rata basis. MOBISMART, at its sole election and only after five years have elapsed since the completion of its potential go-public event, will have the additional right to repurchase any part of the Royalty not already repurchased during its go-public event, on the same pro rata basis.

MOBISMART
Founded in 2013 in Toronto, Canada, MOBISMART is an innovator of advanced, mobile and portable, solar power generation systems that can be easily deployed to construction and natural disaster sites and other urban, rural and remote locations needing off-grid power. MOBISMART’s various power generation and battery storage solutions, including trailerized and containerized systems delivering a range of power requirements, work to reduce the reliance on CO2-emitting diesel generation, fill the gap of compromised on-grid power sources, and support 24/7 mission critical needs.

MOBISMART manufactures its systems in North America, leveraging ISO 9001-certified facilities in Ontario and Quebec. This local control over manufacturing allows for better quality optimization and timely solution delivery, removing any potential supply chain and quality-related issues associated with offshore manufacturing. MOBISMART’s renewable energy roots run deep as the company’s founders are second-generation solar entrepreneurs – the Efston family pioneered the integration of solar energy systems more than 50 years ago. For more information, visit mobismart.ca.

MOBISMART: Product Lineup
Mobile, solar power generation systems with integrated battery storage

MOBISUN SPARK Single-Axle
4-Panel Solar Power Generator
MOBISUN FLARE Dual-Axle
8-Panel Solar Power Generator


Portable, solar power generation systems with integrated battery storage

 

 

 

 

 

 

 

 

MOBIPOWER Containerized Solar Power Generator and Battery Storage (sizes range from 10ft – 40ft)
Source: MOBISMART

 

CONTACT INFORMATION
For more information, please visit our website at starroyalties.com or contact:

Alex Pernin, P.Geo. 
Chief Executive Officer and Director  
apernin@starroyalties.com
+1 647 801 3549
Dmitry Kushnir
Head of Investor Relations
dkushnir@starroyalties.com
+1 647- 287 3846

Download the news release here.

ABOUT STAR ROYALTIES LTD.
Star Royalties Ltd. is a precious metals and green royalty and streaming investment company. The Company created the world’s first carbon negative gold royalty platform and offers investors gold exposure with an increasingly negative carbon footprint. The Company’s objective is to provide wealth creation through accretive transaction structuring and asset life extension with superior alignment to both counterparties and shareholders.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this news release may constitute “forward-looking statements”, including those regarding the strategies and business plans of the Company. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends” “should”, “could”, “may” and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Star Royalties to be materially different from future results, performances or achievements expressed or implied by such statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results, performance or achievements to differ materially from such forward-looking statements, including, without limitation, changes in business plans and strategies of MOBISMART, the ability of MOBISMART continue operations and to expand operations, market conditions, demand, supply and pricing for component parts of power generation and storage units, best use of available cash, risks inherent to off-grid power generation and storage companies, discrepancies between actual and estimated  revenue, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global social and economic climate, natural disasters and global pandemics, including COVID-19, dilution, and competition. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

.

Share:
0 comments on Star Royalties Acquires 2.5% Royalty on Diesel Displacement Technology Company, MOBISMART