OneRoof Energy Secures US$50 Million Construction Loan Facility and Additional Working Capital Funding to Support Solar 2.0 National Growth Strategy

SAN DIEGO, June 15, 2016 /PRNewswire/ -- OneRoof Energy, Inc. ("OneRoof" or the "company"), a residential solar services provider and wholly-owned subsidiary of OneRoof Energy Group, Inc. ("OneRoof Energy") (TSXV: ON) today announced that certain of its affiliates (the "borrowers") have signed a US$50 million construction loan facility, (the "facility"), with Black Coral Capital, LLC ("Black Coral"), a current investor in the company. In addition, Black Coral has funded $9.05 million of working capital to the company, in the form of secured non-convertible notes.

David Field, president and CEO of OneRoof, said the funds borrowed under the facility will be used to finance construction of new solar projects for the company's Solar 2.0 national growth strategy, where OneRoof secures distribution and fulfillment partnerships with major consumer services providers with strong existing homeowner relationships.

"This new round of financing from Black Coral will support our Solar 2.0 strategy to partner with leading energy retail providers, home services providers and other sales partners that are already selling a key product or service to homeowners, thereby reducing our customer acquisition costs across the board," Field said. "We are pleased to be working with Black Coral, which continues to be immensely important to the company's growth and helping bring the benefits of environmentally sensitive renewable energy to new markets throughout the U.S." 

Black Coral loaned an initial tranche of US$36.55 million under the facility and subsequent tranches may be funded from time to time, subject to the terms and conditions of the facility. Principal and interest on the facility will mature and be payable on May 31, 2018 and interest will accrue on borrowed funds at a fixed rate of 6% per annum. Subject to the prior approval of the TSX Venture Exchange, the facility will be secured by certain solar project assets that are not otherwise pledged under the company's other secured loan facilities. The facility requires that the borrowers use the net proceeds of any equity issuances and asset sales in excess of $100,000 to pay all accrued and unpaid interest and outstanding principal under the facility. Amounts borrowed under the facility will be used to finance the construction of solar projects.

The company also announced that it has agreed to a financing totalling US$9.05 million, consisting of secured non-convertible notes (the "notes") issued to Black Coral. The notes are secured by the assets of the company that are not otherwise pledged under project financings (the "available assets"). The available assets are already pledged as security under the company's senior credit agreements, as well as the agreements governing the company's subordinated convertible and non-convertible notes. The notes are subject to the same terms and conditions as the company's outstanding subordinated non-convertible notes. Proceeds from the notes will be used for general working capital purposes.

The completion of the facility and the notes are subject to all applicable regulatory approvals, including the acceptance of the TSXV.

About OneRoof Energy

OneRoof Energy, Inc., a wholly-owned subsidiary of OneRoof Energy Group, Inc., is a solar services provider dedicated to its "Solar 2.0" approach: an innovative model that enables consumer services companies in various verticals to sell residential solar while confidently relying on their solar partner for implementation. OneRoof uses its proven technology platform, big data and proprietary systems to help its partners reach out to their customers who can benefit from solar while building a channel into the home for 20 years. OneRoof provides its partners with customized, turn-key solutions, offering homeowners a suite of financing options, including traditional loan, lease and PPA financing together with system design, installation management and ongoing system monitoring and maintenance. OneRoof is based in San Diego, California, and serves residential customers in nine states: Arizona, California, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, New York and Pennsylvania with plans for additional expansion. For more information, visit www.oneroofenergy.com.

Caution Regarding Forward-Looking Information
Certain statements contained in this document, including those that express management's expectations or estimates regarding the Company's future performance, are "forward-looking information" within the meaning of applicable securities laws.  Forward-looking information is necessarily based on a certain number of estimates and assumptions, which while considered plausible by the management when they are made, are inherently subject to significant commercial, economic and competitive risks and uncertainties.  We advise investors not to rely unduly on forward-looking information.  The Company further declines any intention or obligation to publicly update this forward-looking information, whether due to new information, or future or other events, unless required by applicable law.

Neither the TSX Venture Exchange nor its regulation service provider (as these terms are defined in policies of the TSX Venture Exchange) bears responsibility for the adequacy or accuracy of this press release.

Investor Relations Contact:

David Field
President and Chief Executive Officer
OneRoof Energy Group, Inc.
(858) 458-0533
[email protected]

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SOURCE OneRoof Energy, Inc.

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