Chemistree Technology Inc. has entered into a Subscription Agreement with Philippine Metals Inc. (“PHI”) to invest up to $200,000 in Subscription Receipts.
PHI, a TSX Venture Exchange listed issuer, is currently working towards completing a transaction with a new and exciting pure-play renewable energy company focused on the development of wind and solar projects in the US and Mexican markets. The conversion of the Subscription Receipts into common shares and warrants of PHI is conditional on the closing of the reverse takeover of PHI by ReVolve Renewable Power Limited (“ReVolve”).
ReVolve was established in 2012 and currently has a portfolio of 2.78 gigawatts (“GW”) of projects under active development and a further 1.30GW of greenfield opportunities identified and in the process of being converted to ReVolve’s development pipeline. ReVolve is proceeding with a public listing via reverse takeover of PHI, concurrently with a two-phase capital raise to accelerate its expansion plans in the US.
ReVolve’s business model is based on identifying greenfield project development opportunities focused on strong renewable resource areas, proximity and availability of capacity on the local transmission network as well as environmental considerations. These projects are then brought through the development cycle with the company obtaining the necessary federal, state and other permits and authorisations required for the project as well as securing the necessary interconnection capacity in order for the project to commence construction.
ReVolve then adopts an asset monetisation strategy, whereby it looks to sell development rights of its projects to other Utilities, Independent Power Producers (IPP’s) or Institutional Investors active in the renewable energy sector. ReVolve intends to continue implementing this strategy for its active development pipeline, while retaining the flexibility to change this strategy if the opportunity arises to construct, finance, and operate a model focused on generating longer term revenue and cashflow.
The public listing via reverse takeover of PHI will enable ReVolve to capitalize on the significant growth opportunities in the North American renewable energy market as the major global economies and companies move to net zero carbon emissions. ReVolve is targeting a development pipeline of at least 5GW in the region within the next three years.
Chemistree president Karl Kottmeier commented, “The ReVolve investment highlights Chemistree’s operating thesis as an opportunistic investment company. With renewable energy expected to be one of the fastest growing segments of the energy industry, we are pleased to back a well-seasoned team with a strong project pipeline.”