Duyuru • Dec 06
Royal Aggregator LP, an affiliate of Northampton Capital Partners LLC completed the acquisition of 41.74% stake in Altius Renewable Royalties Corp. (TSX:ARR). Royal Aggregator LP, an affiliate of Northampton Capital Partners LLC entered into a definitive arrangement agreement to acquire 41.74% stake in Altius Renewable Royalties Corp. (TSX:ARR) for approximately CAD 150 million on September 12, 2024. Under the terms of the agreement, Royal Aggregator will acquire all of the issued and outstanding common shares of the Altius Renewable Royalties, other than the 58.3% shares owned by Altius Minerals, for a cash consideration of CAD 12 per share. Following completion of the transaction, Northampton Purchaser will hold 41.7% of the issued and outstanding ARR Shares and Altius Minerals will indirectly hold 58.3% of the issued and outstanding ARR shares, based on the settlement of ARR dilutive. Post completion, Altius Renewable Royalties expects to be delisted from the TSX. In case of termination of transaction, Northampton Capital Partners LLC will pay a termination fee of $6.75 million (CAD 9.17622 million) and seller will pay a termination fee of $6.75 million (CAD 9.17622 million).
The transaction is subject approval of offer by target shareholders, court and other approval, and other customary closing conditions. The Board of Directors of Altius Renewable Royalties Corp. formed a special committee for the transaction, based on the recommendation of which, the deal has been unanimously approved by the board. Shareholders holding approximately 81% of the ARR shares have entered into support agreements to vote in favor of the transaction. The transaction is expected to close in the fourth quarter of 2024. As of October 25, 2024, the hearing of the application for the final order is anticipated to take place before a justice of the Court of King’s Bench of Alberta on November 22, 2024. The transaction is expected to close on or around the end of November 2024. As of November 19, 2024, Altius Renewable announce that the shareholders of the Company have approved the transaction. As of December 2, 2024 Court of King’s Bench of Alberta has approved the application for the final order which approves statutory plan of arrangement pursuant to which Royal Aggregator LP will, among other things, acquire all of the issued and outstanding common shares of Altius Renewable Royalties Corp.
National Bank Financial Inc. acted as fairness opinion provider and financial advisor to the special committee of ARR. McCarthy Tétrault LLP and Pierce Atwood LLP acted as legal advisor to ARR. John Kaercher, Zahra Usmani, Matt Nadworny, Jennifer Wang, David Wheat and Adam Nguyen of Kirkland & Ellis LLP and Mintz LLP acted as legal advisor to Northampton. TSX Trust Company acted as transfer agent to Altius Renewable Royalties Corp.
Royal Aggregator LP, an affiliate of Northampton Capital Partners LLC completed the acquisition of 41.74% stake in Altius Renewable Royalties Corp. (TSX:ARR) on December 4, 2024. As a result of the completion of the Arrangement, the Common Shares are expected to be delisted
from the Toronto Stock Exchange within three business days of closing and no longer quoted on the OTCQX shortly thereafter. Duyuru • Dec 03
Altius Renewable Royalties to be No Longer Publicly Held and the Common Shares to be Delisted from the Toronto Stock Exchange and No Longer Quoted on the OTCQX Altius Renewable Royalties Corp. ('ARR' or the 'Company') announced on December 3, 2024 that the Court of King's Bench of Alberta has approved the application for the final order which approves the previously announced statutory plan of arrangement pursuant to which Royal Aggregator LP (the 'Purchaser'), an affiliate of Northampton Capital Partners, LLC ('Northampton'), will, among other things, acquire all of the issued and outstanding common shares of ARR (each a 'Common Share') other than the 17,937,339 Common Shares (representing approximately 58.092% of the outstanding Common Shares) owned directly or indirectly by Altius Minerals Corporation ('Altius Minerals'), for a price of CAD 12.00 in cash per Common Share (the 'Arrangement'), on and subject to the terms of the Arrangement Agreement between the Company and the Purchaser dated September 11, 2024 (the 'Arrangement Agreement'). As all of the conditions precedent have been satisfied or waived, the parties will proceed towards closing the Arrangement, following which ARR will no longer be publicly held and the Common Shares will be delisted from the Toronto Stock Exchange and no longer quoted on the OTCQX shortly thereafter. Duyuru • Nov 15
PenderFund Sends Letter to Altius Renewable Royalties On November 14, 2024, PenderFund Capital Management Ltd announced that it has sent a letter to Altius Renewable Royalties Corp detailing its concerns over a flawed process undertaken by the special committee to negotiate and approve the proposed take-private offer by Royal Aggregator LP, and filed its notice of intention to appear at the final order fairness hearing, re-affirms its intention to file its written objection and notice of dissent with respect to the transaction. In addition, PenderFund continues to urge the shareholders of the Company to vote against and to exercise dissent rights in respect of the Transaction. Duyuru • Sep 12
Altius Renewable Royalties Expects to be Delisted from the TSX Following Completion of the Transaction Altius Minerals Corporation (‘Altius’ or the ‘Corporation’) reported that its approximately 58% owned subsidiary, Altius Renewable Royalties Corporation has announced that it has entered into a definitive arrangement agreement with an affiliate of Northampton Capital Partners, LLC (‘Northampton’) whereby Northampton will, subject to customary closing conditions, acquire all of the issued and outstanding common shares of the company other than those indirectly owned by Altius by way of a statutory plan of arrangement for cash consideration of CAD 12 per share for total consideration of approximately CAD 162 million (the ‘Transaction’). Altius has entered into a voting support agreement to vote its shares in favour of the Transaction, subject to certain customary exceptions. Following completion of the Transaction, which is expected to occur in the fourth quarter of 2024, the company expects to be delisted from the TSX and cease to be a reporting issuer, and upon closing will be held by Altius and Northampton on an approximately 57%-43% respective ownership basis. Board Change • Sep 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Karen Clarke-Whistler was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Buy Or Sell Opportunity • Aug 01
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at CA$9.30. The fair value is estimated to be CA$11.66, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 163% over the last 3 years. Earnings per share has grown by 36%. Duyuru • Jul 18
Altius Renewable Royalties Corp. to Report Q2, 2024 Results on Aug 05, 2024 Altius Renewable Royalties Corp. announced that they will report Q2, 2024 results After-Market on Aug 05, 2024 Major Estimate Revision • Apr 20
Consensus EPS estimates fall from profit to US$0.035 loss, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$10.3m to US$10.8m. Now expected to report loss of -US$0.035 instead of US$0.017 per share profit. Renewable Energy industry in Canada expected to see average net income decline 45% next year. Consensus price target broadly unchanged at CA$12.49. Share price rose 6.6% to CA$9.38 over the past week. Duyuru • Apr 19
Altius Renewable Royalties Corp. to Report Q1, 2024 Results on May 02, 2024 Altius Renewable Royalties Corp. announced that they will report Q1, 2024 results After-Market on May 02, 2024 Major Estimate Revision • Mar 13
Consensus EPS estimates fall by 44%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$10.0m to US$10.3m. EPS estimate fell from US$0.03 to US$0.017 per share. Net income forecast to shrink 236% next year vs 48% decline forecast for Renewable Energy industry in Canada. Consensus price target up from CA$11.82 to CA$12.30. Share price was steady at CA$8.81 over the past week. Duyuru • Mar 09
Altius Renewable Royalties Corp., Annual General Meeting, May 22, 2024 Altius Renewable Royalties Corp., Annual General Meeting, May 22, 2024. New Risk • Mar 03
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -US$1.4m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-US$1.4m free cash flow). Revenue is less than US$1m. Major Estimate Revision • Feb 10
Consensus EPS estimates fall by 67% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -US$0.018 to -US$0.03 per share. Revenue forecast of US$7.88m unchanged since last update. Renewable Energy industry in Canada expected to see average net income decline 18% next year. Consensus price target broadly unchanged at CA$11.80. Share price fell 4.9% to CA$7.96 over the past week. Major Estimate Revision • Feb 02
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2023 has been updated. 2023 expected loss increased from -US$0.018 to -US$0.02 per share. Revenue forecast unchanged at US$7.88m. Renewable Energy industry in Canada expected to see average net income decline 18% next year. Consensus price target broadly unchanged at CA$11.72. Share price rose 3.5% to CA$8.37 over the past week. Duyuru • Jan 20
Altius Renewable Royalties Corp. to Report Q4, 2023 Results on Mar 06, 2024 Altius Renewable Royalties Corp. announced that they will report Q4, 2023 results After-Market on Mar 06, 2024 Recent Insider Transactions • Nov 17
Insider recently bought CA$97k worth of stock On the 13th of November, John Baker bought around 14k shares on-market at roughly CA$6.98 per share. This transaction increased John Baker's direct individual holding by 2x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$380k more in shares than they have sold in the last 12 months. New Risk • Oct 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 5.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 5.8% per year for the foreseeable future. Revenue is less than US$1m. Minor Risks Currently unprofitable and not forecast to become profitable next year (US$300k net loss next year). Shareholders have been diluted in the past year (16% increase in shares outstanding). New Risk • Oct 20
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: US$271k Forecast net loss in 1 year: US$290k This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. Currently, the following risks have been identified for the company: Major Risk Revenue is less than US$1m. Minor Risks Currently unprofitable and not forecast to become profitable next year (US$290k net loss next year). Shareholders have been diluted in the past year (16% increase in shares outstanding). Duyuru • Oct 17
Altius Renewable Royalties Corp. to Report Q3, 2023 Results on Nov 06, 2023 Altius Renewable Royalties Corp. announced that they will report Q3, 2023 results After-Market on Nov 06, 2023 Breakeven Date Change • Mar 05
Forecast breakeven date pushed back to 2024 The 4 analysts covering Altius Renewable Royalties previously expected the company to break even in 2023. New consensus forecast suggests the company will make a profit of US$900.0k in 2024. Average annual earnings growth of 150% is required to achieve expected profit on schedule. Duyuru • Jan 26
Altius Renewable Royalties Corp. to Report Q4, 2022 Results on Mar 01, 2023 Altius Renewable Royalties Corp. announced that they will report Q4, 2022 results at 4:00 PM, US Eastern Standard Time on Mar 01, 2023 Major Estimate Revision • Dec 10
Consensus EPS estimates fall by 43% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from US$4.43m to US$4.15m. Losses expected to increase from US$0.02 per share to US$0.02. Renewable Energy industry in Canada expected to see average net income growth of 91% next year. Consensus price target broadly unchanged at CA$13.84. Share price was steady at CA$8.65 over the past week. Major Estimate Revision • Nov 16
Consensus revenue estimates increase by 43% The consensus outlook for revenues in 2022 has improved. 2022 revenue forecast increased from US$3.10m to US$4.43m. Forecast losses expected to reduce from -US$0.02 to -US$0.02 per share. Renewable Energy industry in Canada expected to see average net income growth of 91% next year. Consensus price target broadly unchanged at CA$13.64. Share price was steady at CA$9.30 over the past week. Board Change • Nov 16
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Chairman Earl Ludlow is the most experienced director on the board, commencing their role in 2019. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Duyuru • Oct 18
Altius Renewable Royalties Corp. Raises Revenue Guidance for the Year of 2022 Altius Renewable Royalties Corp. raised revenue guidance for the year of 2022. For the year, company increased revenue guidance to $6.5 million - $7.0 million from the $4.5 million-$5.5 million previously provided. Major Estimate Revision • Oct 01
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$3.15m to US$3.10m. EPS estimate of -US$0.01 up from expected loss of US$0.01 per share previously. Renewable Energy industry in Canada expected to see average net income growth of 70% next year. Consensus price target down from CA$15.74 to CA$14.48. Share price was steady at CA$7.63 over the past week. Recent Insider Transactions • Sep 30
Independent Director recently bought CA$78k worth of stock On the 23rd of September, Andre Gaumond bought around 10k shares on-market at roughly CA$7.82 per share. This transaction amounted to 8.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$323k more in shares than they have sold in the last 12 months. Buying Opportunity • Sep 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 5.8%. The fair value is estimated to be CA$10.85, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 100% over the last year. Earnings per share has declined by 860%. Major Estimate Revision • Aug 11
Consensus revenue estimates fall by 44% The consensus outlook for revenues in 2022 has deteriorated. 2022 revenue forecast decreased from US$2.70m to US$1.50m. Forecast losses increased from -US$0.03 to -US$0.04 per share. Renewable Energy industry in Canada expected to see average net income growth of 68% next year. Consensus price target broadly unchanged at CA$15.02. Share price rose 19% to CA$10.17 over the past week. Buying Opportunity • Jul 26
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be CA$10.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 100% over the last year. Earnings per share has declined by 38%. Recent Insider Transactions • Jun 15
Independent Director recently bought CA$83k worth of stock On the 13th of June, Andre Gaumond bought around 10k shares on-market at roughly CA$8.49 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought CA$265k more in shares than they have sold in the last 12 months. Board Change • Apr 27
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. Independent Chairman Earl Ludlow is the most experienced director on the board, commencing their role in 2019. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 05
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Net loss: US$3.42m (loss widened 73% from FY 2020). Revenue missed analyst estimates by 45%. Buying Opportunity • Mar 01
Now 21% undervalued Over the last 90 days, the stock is up 22%. The fair value is estimated to be US$17.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 99% over the last year. Earnings per share has grown by 82% over the last year. Board Change • Dec 31
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. Independent Chairman Earl Ludlow is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 10
Third quarter 2021 earnings released: US$0.05 loss per share (vs US$0.021 loss in 3Q 2020) Third quarter 2021 results: Net loss: US$1.41m (loss widened 303% from 3Q 2020). Major Estimate Revision • Aug 11
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 expected loss increased from -US$0.045 to -US$0.055 per share. Revenue forecast of US$60.0k unchanged since last update. Renewable Energy industry in Canada expected to see average net income growth of 26% next year. Consensus price target broadly unchanged at CA$13.64. Share price rose 5.1% to CA$9.68 over the past week. Executive Departure • Aug 06
Independent Director Judy Cotte has left the company On the 5th of August, Judy Cotte's tenure as Independent Director ended after less than a year in the role. As of March 2021, Judy still personally held only 3.60k shares (CA$39k worth at the time). Judy is the only executive to leave the company over the last 12 months. Recent Insider Transactions • May 28
Independent Director recently bought CA$56k worth of stock On the 26th of May, Andre Gaumond bought around 6k shares on-market at roughly CA$9.30 per share. In the last 3 months, they made an even bigger purchase worth CA$538k. Insiders have collectively bought CA$2.5m more in shares than they have sold in the last 12 months. Reported Earnings • May 08
First quarter 2021 earnings released: US$0.01 loss per share (vs US$0.11 loss in 1Q 2020) First quarter 2021 results: Net loss: US$130.9k (loss narrowed 71% from 1Q 2020). Recent Insider Transactions • May 08
Independent Director recently bought CA$52k worth of stock On the 30th of April, Andre Gaumond bought around 5k shares on-market at roughly CA$10.46 per share. In the last 3 months, they made an even bigger purchase worth CA$538k. Insiders have collectively bought CA$2.4m more in shares than they have sold in the last 12 months. Recent Insider Transactions • May 05
Independent Director recently bought CA$52k worth of stock On the 30th of April, Andre Gaumond bought around 5k shares on-market at roughly CA$10.46 per share. In the last 3 months, they made an even bigger purchase worth CA$538k. Insiders have collectively bought CA$2.4m more in shares than they have sold in the last 12 months. Reported Earnings • Mar 30
Full year 2020 earnings released: US$0.15 loss per share (vs US$0.49 loss in FY 2019) Full year 2020 results: Net loss: US$1.98m (loss widened 31% from FY 2019). Duyuru • Mar 24
Altius Renewable Royalties Corp. announced that it has received $0.074 million in funding On March 22, 2021, Altius Renewable Royalties Corp closed the transaction. The transaction included participation from a single investor. Duyuru • Mar 20
Altius Renewable Royalties Corp., Annual General Meeting, May 27, 2021 Altius Renewable Royalties Corp., Annual General Meeting, May 27, 2021. Duyuru • Mar 05
Altius Renewable Royalties Corp. has completed an IPO in the amount of CAD 100.1 million. Altius Renewable Royalties Corp. has completed an IPO in the amount of CAD 100.1 million.
Security Name: Common Shares
Security Type: Common Stock
Securities Offered: 9,100,000
Price\Range: CAD 11
Discount Per Security: CAD 0.66
Transaction Features: Regulation S; Rule 144A