CVW Sustainable Royalties Inc. (TSXV: CVW | OTCQX: CVWFF | FSE: TMD) has funded the $1.5 million second tranche of its gross revenue royalty agreement with Relocalize Inc., completing the full $4.0 million in up-front capital contemplated under the deal. The second investment secures a 25.0% gross revenue royalty on Relocalize's forthcoming Montreal, Quebec cold-pack production facility. Notably, the company also disclosed receipt of its first royalty revenue and cash payment from Relocalize, generated by the already-operating Plant City, Florida facility — a milestone the company's CEO described as marking CVW's transformation into a royalty platform.

Key Points

  • CVW Sustainable Royalties Inc. (TSXV: CVW | OTCQX: CVWFF | FSE: TMD)
  • The company has fully deployed $4.0 million under its Royalty Agreement with Relocalize, funding the $1.5 million second investment to secure a 25.0% gross revenue royalty on the Montreal Facility
  • CVW holds a combined royalty option to invest up to an additional $22.5 million in up to 13 further Relocalize facilities, plus a 20-year right of first refusal on royalty financing
  • Investors may be watching the Montreal Facility's development timeline and Plant City's continued ramp toward full commercial production

Second Investment Triggers Montreal Facility Development After Board FID

The $1.5 million Second Investment was funded following confirmation that Relocalize satisfied conditions under the Royalty Agreement, including a Final Investment Decision by Relocalize's Board of Directors. In exchange, CVW Royalties receives a 25.0% gross revenue royalty — referred to as the Montreal Royalty — on the Montreal Facility, which is designed to produce cold packs targeting the meal kit delivery, ready-to-eat meal, and convenience-focused markets. The royalty is structured to step down to 15.0% once certain commercial milestones are achieved, consistent with the terms established at the agreement's outset in February 2026.

Plant City Facility Operating and Generating First Royalty Revenue for CVW

The Plant City, Florida facility — funded by the earlier $2.5 million First Investment carrying a 25.0% Plant City Royalty — is now operational, producing packaged ice at a Winn-Dixie distribution centre and currently serving several Winn-Dixie stores. CVW Royalties confirmed receipt of its first royalty revenue and cash payment from these operations, representing the company's initial cash return from its royalty portfolio. The announcement states volumes are expected to grow as Relocalize continues scaling, though specific production or revenue figures were not disclosed in the announcement.

CVW™ Royalty Platform Eyes Pharmaceutical Sector and Future Facility Options

Beyond the two funded facilities, CVW Royalties retains the option to invest up to an additional $22.5 million across up to 13 further Relocalize facilities, along with a 20-year right of first refusal on royalty financing for all Relocalize facilities. The company also highlighted growing interest from pharmaceutical sector participants as a potential additional market opportunity for Relocalize's platform. CVW's broader royalty portfolio also includes interests in Northstar Clean Technologies facilities and its proprietary CVW™ technology for oil sands tailings recovery.