RE ROYALTIES LTD. RE ROYALTIES LTD.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2021 AND 2020
(Expressed in Canadian Dollars)
(Unaudited)
RE Royalties Ltd. | - | - | |||
Condensed Consolidated Interim Statements of Financial Position | |||||
(Unaudited - Expressed in Canadian Dollars) | |||||
September 30, | December 31, | ||||
Note | 2021 | 2020 | |||
ASSETS | |||||
Non-current assets | |||||
Secured loans and royalty interests | 4 | $ | 7,200,457 | $ | 8,302,723 |
Deferred transaction costs | 5 | 83,402 | - | ||
Investment in an associate | 6 | 1 | 1 | ||
Right of use asset | 8 | 89,243 | - | ||
7,373,103 | 8,302,724 | ||||
Current assets | |||||
Secured loans and royalty interests | 4 | 2,119,937 | 7,135,378 | ||
Amounts receivable and prepaid expenses | 7 | 802,706 | 467,701 | ||
Cash and cash equivalents and restricted cash | 3 | 15,915,729 | 11,704,731 | ||
18,838,372 | 19,307,810 | ||||
TOTAL ASSETS | $ | 26,211,475 | $ | 27,610,534 | |
EQUITY | |||||
Share capital | 12 | $ | 23,159,638 | $ | 23,159,638 |
Reserves | 12(c) | 1,656,760 | 871,649 | ||
Accumulated deficit | (9,985,978) | (7,023,733) | |||
14,830,420 | 17,007,554 | ||||
LIABILITIES | |||||
Non-current liabilities | |||||
Green bonds | 10 | - | 8,906,325 | ||
Convertible notes | 11 | 1,761,426 | 1,608,122 | ||
Lease liability | 8 | 76,092 | - | ||
1,837,518 | 10,514,447 | ||||
Current liabilities | |||||
Green bonds | 10 | 9,364,905 | - | ||
Lease liability | 8 | 14,676 | - | ||
Trade payables and accrued liabilities | 9 | 163,956 | 88,533 | ||
9,543,537 | 88,533 | ||||
Total liabilities | 11,381,055 | 10,602,980 | |||
TOTAL EQUITY AND LIABILITIES | $ | 26,211,475 | $ | 27,610,534 | |
Events after the reporting period (note 16) |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
These condensed interim financial statements are approved for issuance by the Audit and Risk Committee of the Company's Board of Directors on November 29, 2021 and are signed on the Company's behalf by the following:
/s/ Bernard Tan | /s/ Rene Carrier |
Bernard Tan | Rene Carrier |
Director | Director |
Page 2
RE Royalties Ltd.
Condensed Consolidated Interim Statements of Comprehensive (Loss) Income
(Unaudited - Expressed in Canadian Dollars, except for weighted average number of common shares)
Three months ended September 30, | Nine months ended September 30, | ||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Revenue and income | |||||||||
Royalty revenue | $ | 189,939 | $ | 187,275 | $ | 603,147 | $ | 580,773 | |
Finance income | 190,000 | 270,161 | 632,832 | 912,475 | |||||
Gain from royalty buyout | 4(b),(f) | - | 451,915 | - | 451,915 | ||||
Gain on derecognition of financial asset | 4(e) | 129,417 | - | 129,417 | - | ||||
509,356 | 909,351 | 1,365,396 | 1,945,163 | ||||||
Amortization and depletion | |||||||||
Amortization of transaction cost | 4 | - | - | - | 7,521 | ||||
Depletion of royalty interest | 4 | 72,112 | 71,834 | 215,083 | 205,712 | ||||
(72,112) | (71,834) | (215,083) | (213,233) | ||||||
Gross profit | 437,244 | 837,517 | 1,150,313 | 1,731,930 | |||||
Gain/(Loss) on revaluation of financial asset at FVTPL | 4 | 9,000 | 38,000 | (4,796) | 149,110 | ||||
Gross profit and changes in fair value of financial assets | 446,244 | 875,517 | 1,145,517 | 1,881,040 | |||||
Expenses/(recoveries) | - | ||||||||
Wages and benefits | 176,571 | 132,107 | 508,863 | 397,546 | |||||
Administration | 86,541 | 73,513 | 273,720 | 227,113 | |||||
Marketing and stakeholder communication | 68,284 | 85,528 | 228,821 | 185,481 | |||||
Audit and audit related | 43,253 | 33,705 | 166,765 | 112,519 | |||||
Consulting - financing | 32,677 | 44,639 | 99,203 | 118,075 | |||||
Consulting - other | 22,059 | 38,190 | 98,358 | 129,427 | |||||
Regulatory and transfer agency | 8,780 | 15,383 | 61,487 | 37,921 | |||||
Office lease and information technology | 12,402 | 18,900 | 47,547 | 57,600 | |||||
Legal | 2,380 | - | 23,048 | - | |||||
Donations | 25,000 | - | 51,000 | 50,000 | |||||
Equity-settledshare-based payments | 12(c) | 147,000 | 444 | 778,000 | 9,428 | ||||
Amortization of right-of-use asset | 8 | 4,868 | - | 8,113 | - | ||||
Cost recovery | - | (9,299) | - | (13,465) | |||||
(629,815) | (433,110) | (2,344,925) | (1,311,645) | ||||||
Other items | |||||||||
Finance expenses | 266,463 | 58,738 | 763,126 | 159,261 | |||||
Share of loss of an associate | 6 | - | 4,050 | - | 15,300 | ||||
Foreign exchange loss (gain) | (8,347) | (7,366) | 1,014 | (40,571) | |||||
(258,116) | (55,422) | (764,140) | (133,990) | ||||||
Net (loss) income | $ | (441,687) | $ | 386,985 | $ | (1,963,548) | $ | 435,405 | |
Other comprehensive (loss) income | |||||||||
Items that may be subsequently reclassified to net income | |||||||||
Foreign exchange translation difference | - | (10,520) | - | 11,480 | |||||
Total other comprehensive (loss) income | - | (10,520) | - | 11,480 | |||||
Total comprehensive (loss) income | $ | (441,687) | $ | 376,465 | $ | (1,963,548) | $ | 446,885 | |
Basic and diluted (loss) income per share | 14 | $ | (0.01) | $ | 0.01 | $ | (0.06) | $ | 0.01 |
Weighted average number of common shares outstanding | 14 | 33,289,927 | 32,402,367 | 33,289,927 | 32,248,944 | ||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 3
RE Royalties Ltd.
Condensed Consolidated Interim Statements of Changes in Equity (Unaudited - Expressed in Canadian Dollars, except for number of shares)
Share capital | Reserves | ||||||||||||||
Convertible | Foreign | ||||||||||||||
Equity-settled | Share | note - | currency | ||||||||||||
Number of | share-based | purchase | conversion translation | Accumulated | |||||||||||
Note | shares | Amount | payments | warrants | option | reserve | deficit | Total equity | |||||||
Balance at January 1, 2020 | 32,171,389 | $22,241,137 | $ | 528,183 | $ | 12,876 | $ | 26,911 | $ | 64,249 | $ | (5,279,574) | $ | 17,593,782 | |
Net income | - | - | - | - | - | - | 435,405 | 435,405 | |||||||
Other comprehensive income | - | - | - | - | - | 11,480 | - | 11,480 | |||||||
Total comprehensive income | - | - | - | - | - | 11,480 | 435,405 | 446,885 | |||||||
Issuance of the 2020-Convertible Notes - equity component | 11 | - | - | - | - | 87,000 | - | - | 87,000 | ||||||
Equity-settledshare-based payments | 12(c) | - | - | 9,428 | - | - | - | - | 9,428 | ||||||
Distribution to shareholders | 12(d) | - | - | - | - | - | - | (970,142) | (970,142) | ||||||
Shares issued upon exercise of warrants | 12(b) | 500,000 | 250,000 | - | - | - | - | - | 250,000 | ||||||
Reallocation of reserve relating to warrants exercised | 12(b) | - | 5,000 | - | (5,000) | - | - | - | - | ||||||
Shares issued upon exercise of options | 12(b) | 7,700 | 7,700 | - | - | - | - | - | 7,700 | ||||||
Reallocation of reserve relating to options exercised | 12(b) | - | 2,926 | (2,926) | - | - | - | - | - | ||||||
Balance at September 30, 2020 | 32,679,089 | $22,506,763 | $ | 534,685 | $ | 7,876 | $ | 113,911 | $ | 75,729 | $ | (5,814,311) | $ | 17,424,653 | |
Balance at January 1, 2021 | 33,289,927 | $23,159,638 | $ | 499,973 | $ | 229,802 | $ | 87,000 | $ | 54,874 | $ | (7,023,733) | $ | 17,007,554 | |
Net loss | - | - | - | - | - | - | (1,963,548) | (1,963,548) | |||||||
Other comprehensive loss | - | - | - | - | - | - | - | - | |||||||
Total comprehensive loss | - | - | - | - | - | - | (1,963,548) | (1,963,548) | |||||||
Equity-settledshare-based payments | 12(c) | - | - | 778,000 | - | - | - | - | 778,000 | ||||||
Distribution to shareholders | 12(d) | - | - | - | - | - | - | (998,697) | (998,697) | ||||||
Fair value of warrants issued pursuant to the Green Bond offering | 12(c) | - | - | - | 7,111 | - | - | - | 7,111 | ||||||
Balance at September 30, 2021 | 33,289,927 | $23,159,638 | $ | 1,277,973 | $ | 236,913 | $ | 87,000 | $ | 54,874 | $ | (9,985,978) | $ | 14,830,420 | |
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 4
RE Royalties Ltd.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited - Expressed in Canadian Dollars)
Nine months ended September 30, | |||||
Note | 2021 | 2020 | |||
Operating activities | |||||
Net (loss) income | $ | (1,963,548) | $ | 435,405 | |
Adjustments for: | |||||
Amortization of transaction costs | - | 7,521 | |||
Depletion of royalty interests | 215,083 | 205,712 | |||
Interest received, net of accretion and accrued interest on | |||||
secured loans | 464,120 | 59,528 | |||
Loss/(gain) on revaluation of financial asset at FVTPL | 4,796 | (45,267) | |||
Amortization of right-of-use asset | 8,113 | - | |||
Finance expenses | 763,126 | 159,261 | |||
Equity-settledshare-based payments | 778,000 | 9,428 | |||
Share of loss of an associate | - | 15,300 | |||
Unrealized exchange loss on cash held | 1,200 | (9,900) | |||
Changes in working capital items: | |||||
Amounts receivable and prepaid expenses | (335,005) | 474,474 | |||
Trade payables and accrued liabilities | 75,423 | 37,132 | |||
Cash provided by operating activities | 11,308 | 1,348,594 | |||
Investing activities | |||||
Acquisition of royalty interests and secured loan | 4 | (2,359,750) | (4,627,545) | ||
Proceeds from repayment of secured loan | 7,689,235 | - | |||
Proceeds from repayment of secured loan at FVTPL | 104,223 | - | |||
Deferred transaction costs | 5 | (83,402) | - | ||
Cash provided by (used in) investing activities | 5,350,306 | (4,627,545) | |||
Financing activities | |||||
Proceeds from the Green Bonds offering, net of costs | 10 | 320,853 | - | ||
Subscriptions for Green Bonds | 10 | - | 386,264 | ||
Proceeds from issuance of convertible notes, net of costs | 11 | - | 1,524,647 | ||
Cash distribution to shareholders | 12(d) | (998,697) | (970,142) | ||
Proceeds from exercise of warrants | 12(b) | - | 250,000 | ||
Proceeds from exercise of options | 12(b) | - | 7,700 | ||
Payment of principal on lease | 8 | (7,189) | - | ||
Payment of interest on lease | 8 | (2,479) | - | ||
Payments of interest on borrowings | (452,621) | (24,497) | |||
Other finance expenses | (9,283) | - | |||
Cash (used in) provided by financing activities | (1,149,416) | 1,173,972 | |||
Increase (Decrease) in cash and cash equivalents | 4,212,198 | (2,104,979) | |||
Effects of exchange rate fluctuations on cash held | (1,200) | 9,900 | |||
Cash and cash equivalents, opening balance | 11,704,731 | 4,048,057 | |||
Cash and cash equivalents, closing balance | $ | 15,915,729 | $ | 1,952,978 | |
Supplemental cash flow information (note 3)
The accompanying notes are an integral part of these condensed consolidated interim financial statements
Page 5
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RE Royalties Ltd. published this content on 09 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2022 07:40:04 UTC.
