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August 8, 2017

Grenville Strategic Royalty Announces 2017 Second Quarter Results

Grenville Strategic Royalty Announces 2017 Second Quarter Results

Records Royalty Payment Income of $1.0 million and Free Cash Flow of $3.5 million in Q2 2017

TORONTO, Aug. 08, 2017 (GLOBE NEWSWIRE) — Grenville Strategic Royalty Corp. (TSX-V:GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three- and six-month periods ended June 30, 2017. Financial references are in Canadian dollars unless otherwise specified.

2017 Second Quarter Financial Highlights

  • Royalty Payment Income of $1,026,000
  • Adjusted EBITDA(1) of $3,372,000
  • Free Cash Flow(1) of $3,517,000

Operational Highlights

  • Closed five new investments, consisting of US$150,000 in MedWorxs LLC, $125,000 in Fixt Wireless Inc., US$1,500,000 in ConnectAndSell, Inc., US$350,000 in Kare Intellex Inc. and US$500,000 in Frequentz, Inc., and one follow-on investment of US$125,000 in Factor 75
  • Completed a Contract Buyout of $5 million, plus royalties earned, on the $2 million investment in Aquam Corporation
  • Acquired 18.2 million shares in Lattice Biologics Ltd at an issue price of $0.20 per share in exchange for the extinguishment of the US$2,000,000 royalty agreement and US$700,000 in overdue royalty payments
  • Closed after the end of the quarter one new investment in Hybrid Financial Ltd. for $425,000

“We generated positive free cash flow again this quarter as the performing investments and our cost restructuring have established a sustainable path forward for the business. In total, we have generated more than $41 million in cash from the nearly $68 million invested to date,” said Steve Parry, Chief Executive Officer of Grenville. “The Aquam buyout represents our seventh successful Contract Buyout, which provide non-dilutive cash to redeploy into new investments. The five new investments during the quarter and one new investment after the end of the quarter demonstrate we have returned to a consistent pace of capital deployment. We have sufficient cash on hand to continue this pace through calendar 2017, with a robust pipeline of new opportunities that align with the investment criteria of our new investment model that we implemented in mid-2016. We continue to focus on generating monthly royalty income above $400,000 where the business generates sustainable free cash flows.”

Financial Highlights

Canadian dollars Three months ended
June 30, 2017
Three months ended
June 30, 2016
Revenues $   (2,067,408) $   1,290,572
Royalty Payment Income and Interest and Fee Income Earned 1,068,560 2,096,718
Adjusted EBITDA(1)   3,371,884   507,700
Free Cash Flow(1)   3,517,919   340,161
(Loss) for the period   (2,456,208)   (633,250)
Basic (Loss) per share   (0.0231)   (0.0060)
Diluted (Loss) per share   (0.0231)   (0.0060)
Weighted basic average number of shares outstanding   106,317,656   106,267,252
Royalty agreements acquired in period 3,695,503 427,575

(1) Adjusted EBITDA and Free cash flow are non-IFRS measures. Refer to section Definition of Non-IFRS Measures for further explanation and definitions.

Revenues
Revenues were $(2,067,000) and $(5,510,000) for the three-month (Q2 2017) and six-month (YTD 2017) periods ended June 30, 2017, respectively, compared to $1,291,000 and $(1,543,000) for the corresponding periods in 2016. With the adoption of IFRS 9, certain non-cash items are recognized in revenue. Revenues in the quarterly period were negatively impacted by net non-cash items of $3,135,000 made up of $1,213,000 of an unrealized loss in writing-down the fair value of royalty agreements acquired and promissory notes receivable, $1,432,000 for the unrealized loss in the change in the fair value of the shares held in Lattice Biologics Ltd. and the balance for unrealized foreign exchange loss.

Royalty Payment Income and Interest and Fee Income Earned
Royalty payment income plus interest and fee income earned was $1,069,000 and $2,419,000 for Q2 2017 and YTD 2017, respectively, compared to $2,097,000 and $4,715,000 for the corresponding periods in 2016. The change in the quarterly period was due to no royalty payment income recognized in Q2 2017 from seven investees that have failed to pay royalties for at least three months compared to $825,000 of income recognized from this group in the same period last year. Management believes that the core companies from its portfolio will continue to contribute free cash flow(1) on a regular basis as the portfolio matures.

Operating Expense
Total operating expenses were $803,000 and $2,054,000 for Q2 2017 and YTD 2017, respectively, compared to $1,657,000 and $2,715,000 for the corresponding periods in 2016. The $854,000, or 52%, decrease was due to an overall $179,000 decrease in expenses in Q2 2017 and the $675,000 contract payment made to the former Chief Executive Officer in the prior year period.

Adjusted EBITDA(1) 
Adjusted EBITDA(1) was $3,372,000 and $3,529,000 for Q2 2017 and YTD 2017, respectively, compared to $508,000 and $2,094,000 for the corresponding periods in 2016. The improvement in the quarterly period is primarily due to the $3,000,000 realized gain on the Aquam Contract Buyout and lower operating expenses.

Free Cash Flow(1)
Free cash flow(1) was $3,518,000 and $3,570,000 for Q2 2017 and YTD, respectively, compared to $340,000 and $(251,000) for the corresponding periods in 2016. The improvement in the quarterly period is primarily due to the $3,000,000 realized gain on the Aquam buyout.

Loss After Taxes
Loss after taxes was $2,456,000 and $6,248,000 for Q2 2017 and YTD 2017, respectively, compared to $633,000 and $3,824,000 for the corresponding periods in 2016. The change in the quarterly period was due to an increase of $2,150,000 in the realized loss from investments written-off, lower royalty payment income of $945,000, higher unrealized foreign exchange loss of $334,000, which was partially offset by a higher unrealized gain of $922,000 from investments derecognized and lower operating costs.

Assets

   As at June 30, 2017  As at December 31, 2016
Cash and cash equivalents $ 7,984,838 $ 6,202,412
Royalty agreements acquired and promissory notes 25,376,712 37,562,379
Equity securities in in investee companies 2,190,617
Total assets 43,685,117   49,426,466

Outlook

The Company has invested almost $68 million of capital in 39 portfolio companies, generated Adjusted EBITDA(1) of $19.5 million and generated free cash flow(1) of $11.6 million since inception in July 2013. The core of the portfolio has reached a scale at which it is generating Adjusted EBITDA(1) .

Grenville’s royalty agreements with its portfolio companies generated Adjusted EBITDA(1) to the Company of approximately $3.4 million, including the $3.0 million Contract Buyout of Aquam, for the three-month period ended June 30, 2017. As of August 8, 2017, the Company estimates that for the month of July 2017, royalty payment income, interest and fee income will be $350,000, Free Cash Flow will be $50,000 and Adjusted EBITDA will be $100,000.

Based on information available as of August 8, 2017, management believes that there are additional investments in the portfolio that represent Contract Buyout opportunities. The Company believes that the potential gross amount that could be received from these Contract Buyouts is up to $4.0 million. The Company believes this would significantly increase Adjusted EBITDA(1) up to $2.0 million and Free Cash Flow(1) up to $1.4 million. Given the nature of Contract Buyouts, the timing and the amount of Contract Buyouts are uncertain and any estimates included here may vary either positively or negatively.

Operating expenses (excluding share-based compensation) for Q2 2017, were approximately $245,000 per month and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q3 2017. The Company’s cash position as at August 8, 2017, is approximately $8.1 million.

Grenville’s unique capital offering continues to fill an expansive niche in the North American small to medium sized enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, management is confident the Company will be able to add new portfolio companies to its existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville’s financial statements and management’s discussion and analysis for the three-month period ended June 30, 2017, will be filed today on SEDAR at www.sedar.com and also available on Grenville’s website at www.grenvillesrc.com.

(1)  Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details

Grenville will host a conference call to discuss these results at 8:00 a.m. Eastern Time, Wednesday, August 9, 2017. Participants should call (647) 427-2311 or (866) 521-4909 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 61059448. The replay recording will be available until 11:59 p.m. Eastern Time, August 16, 2017.

An audio recording of the conference call will be also available on the investors’ page of Grenville’s website at grenvillesrc.com.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the amount and timing of the payment of dividends by the Company; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact: 

Grenville Strategic Royalty Corp.:
Steven Parry
Chief Executive Officer
Tel: (416) 777-0383

Grenville Strategic Royalty Announces $425,000 Royalty Agreement with Hybrid Financial Ltd.

Grenville Strategic Royalty Announces $425,000 Royalty Agreement with Hybrid Financial Ltd.

TORONTO, Ontario, August 8, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with Hybrid Financial Ltd. (“Hybrid”) to provide $425,000 CDN in growth capital. The JV partners are expected to close additional funds in the next week for a total commitment from the three parties of $750,000 CDN to Hybrid.

Based in Toronto, Hybrid provides investor relations and retail-focused origination and distribution services to the investment management industry throughout North America. Leveraging technology and one of the most comprehensive databases of the Canadian and US retail investment advisor landscape, Hybrid has become one of the leading financial sales and investor relations firms in Toronto.

“Like many Fintech companies, Hybrid has successfully reinvented important steps in the capital markets process” said Grenville CEO Steve Parry. “Their platform transforms and merges the deal origination, distribution and communications functions for companies and capital providers. As both an investor and a potential customer, we see their approach as state of the art with higher success rates than traditional practices.”

About Hybrid Financial Ltd.

Hybrid, founded in 2011 by Steven Marshall, is a specialized investment products and corporate sales, distribution and Investor relations business which delivers its services on an outsourced basis on behalf of several of Canada’s largest and most well respected financial institutions. As a result of its unique automated sales and marketing platform, Hybrid offers a compelling value proposition to publicly listed corporations, investment managers and issuers seeking to find a more efficient and cost-effective means of generating sales through the retail broker/dealer networks

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

August 2, 2017

Notice of Grenville Strategic Royalty’s Second Quarter 2017 Financial Results Conference Call

Notice of Grenville Strategic Royalty’s Second Quarter 2017 Financial Results Conference Call

– Financial results to be released after markets on Tuesday, August 8, 2017 –

TORONTO, Ontario, August 2, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its second quarter 2017 financial results after the markets close on Tuesday, August 8, 2017. Mr. Steve Parry, Chief Executive Officer, and Mr. Donnacha Rahill, Chief Financial Officer, will host a conference call at 8:00 a.m. ET the next day, Wednesday, August 9, 2017, to review the results. A question and answer session will follow the corporate update.

CONFERENCE CALL DETAILS

DATE:                                          Wednesday, August 9, 2017

TIME:                                           8:00 AM Eastern Time

DIAL IN NUMBER:                     647-427-2311 or 866-521-4909

TAPED REPLAY:                         416-621-4642 or 800-585-8367

REFERENCE NUMBER:            61059448

A recording of the call will be archived on the Company’s website at www.grenvillesrc.com/financials/ .

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For further information, please contact:

Steve Parry

Chief Executive Officer

Tel: (416) 777-0383

June 21, 2017

Grenville Strategic Royalty Announces USD$500,000 Royalty Agreement with Frequentz, Inc.

Grenville Strategic Royalty Announces USD$500,000 Royalty Agreement with Frequentz, Inc.

TORONTO, Ontario, June 21, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with Frequentz, Inc. (“Frequentz”) to provide USD$500,000 in growth capital.

Based in Palo Alto, CA, Frequentz is a leading provider of comprehensive supply chain traceability and information management solutions, serving some of the world’s largest food and life sciences distributors and manufacturers.  Leveraging technology initially built by Earthbound Farm and IBM, the company’s software provides valuable insights into supply chains and critical business processes by collecting, storing, and analyzing serialized ingredient data through each stage of processing down to their source.

“Frequentz represents an opportunity for Grenville to invest alongside highly regarded Silicon Valley investors and entrepreneurs with deep domain expertise in a leading supply chain technology company” said Grenville CEO Steve Parry. “This is a good example of our focus on investments with quality management and capital partners, where our royalty product is ideally suited to act as a catalyst for future growth.”

Frequentz, Inc.

Frequentz provides serialized data, supply chain traceability, and information management software solutions to major food and life sciences companies. Frequentz ’s primary offering, their Information Repository & Intelligence Server (“IRIS”) tracks, traces, serializes, verifies, captures, stores, and analyses product event data, at the unit or lot level, as the product moves through the supply chain.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

June 14, 2017

Grenville Strategic Royalty Announces Completion of Transaction To Restructure Lattice Biologics Investment

Grenville Strategic Royalty Announces Completion of Transaction To Restructure Lattice Biologics Investment

TORONTO, June 14, 2017 (GLOBE NEWSWIRE) — Grenville Strategic Royalty Corp. (TSXV:GRC) (“Grenville” or the “Company”) today announced that, as previously disclosed, it has acquired 18,246,600 common shares (“Shares”) of Lattice Biologics Ltd (TSXV:LBL) (“Lattice”) at an issue price of CDN$0.20 in exchange for the extinguishment of USD$2,000,000 of Grenville’s original royalty investment in Lattice and USD$700,000 of overdue royalty payments owing by Lattice to Grenville under the existing royalty agreement between the parties. As a result of the issuance of the Shares, Grenville holds approximately 19.68% of the total issued and outstanding common shares of Lattice. The Shares are subject to a four-month hold period under applicable securities laws. Grenville has filed an early warning report on SEDAR in respect of its acquisition of the Shares.

About Grenville
Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

June 5, 2017

Grenville Strategic Royalty Announces $USD350,000 Royalty Agreement with Kare Intellex Inc.

Grenville Strategic Royalty Announces $USD350,000 Royalty Agreement with Kare Intellex Inc.

TORONTO, June 05, 2017 (GLOBE NEWSWIRE) — Grenville Strategic Royalty Corp. (TSXV:GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with Kare Intellex Inc. (“Kare”) to provide USD$350,000 in acquisition and growth capital.

Kare offers software that automates tedious paper record-keeping and insurance billing for home health agencies. With this financing, the company has completed the acquisition of Alternacare Home Health Services Inc. (“Alternacare”) which will serve as a platform for demonstrating the value of the Kare  software.  By combining the two businesses, Kare will be able to fully integrate with medical providers, large insurance providers, and families to significantly improve the way home care is delivered.

“We are very pleased to add to our technology-enabled healthcare portfolio with the investment in Kare Intellex,” said Grenville CEO Steve Parry. “Hanad Duale, Cindy Thiel and their industry-expert board are taking advantage of the strongest trend in US healthcare – the move towards homecare as a more cost effective and patient-friendly method of delivering services. We believe the combination of Kare’s technology platform with the acquisition of Alternacare is a great model for demonstrating this approach.”

About Kare Intellex Inc.

Kare Intellex Inc. has developed an on-demand mobile platform that is transforming homecare delivery by empowering patients, caregivers and payers to reduce costs and focus resources where they’re needed most, patient care.  Via its recent acquisition of Alternacare, the company now offers home health services to patients located in the South East of the state of Ohio.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

May 10, 2017

Grenville Strategic Royalty Announces 2017 First Quarter Results

Grenville Strategic Royalty Announces 2017 First Quarter Results

– Records Royalty Payment Income of $1.3 million in Q1 2016 –

TORONTO, Ontario, May 10, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three-month period ended March 31, 2017 (“Q1 2017”). Financial references are in Canadian dollars unless otherwise specified.

2017 First Quarter Financial Highlights

  • Royalty Payment Income of $1,333,000
  • Adjusted EBITDA(1) of 157,000
  • Free Cash Flow(1) of $52,000

Operational Highlights

  • Closed four investments subsequent to the end of the quarter, consisting of three new investments of US$150,000 in Medworxs LLC, $125,000 in Fixt Wireless Inc. and US$1.5 million in ConnectAndSell, Inc. and one follow-on investment of US$125,000 in Factor 75
  • Announced a Contract Buyout of $5 million, plus royalties earned, on the $2 million investment in Aquam Corporation, subsequent to the end of the quarter

“Our results are starting to reflect the important improvements we have made in the business during the last twelve months. We have reduced our cost structure to a point where we generate cash on a consistent basis. While we are still seeing fair value decreases on the balance sheet related to the legacy portfolio, we are generating significant free cash flows related to Contract Buyouts, including the April buyout of Aquam. The Aquam buyout increased capital available for new investments to approximately $10 million, which along with investments by our joint venture partners is sufficient to fund a robust program in 2017,” said Steve Parry, Chief Executive Officer of Grenville.  “To put this in perspective, we have generated more than $40 million in cash from the $66 million invested to date. The core positions within the portfolio are producing and align well with our go-forward investment model reflecting the profound learning we have extracted from the first four years of deploying this unique SME royalty product.”

Financial Highlights

Canadian dollars

Three months ended March 31, 2017

Three months ended March 31, 2016

Revenues

$          (3,442,258)

$          (2,833,267)

Royalty Payment Income and Interest Income Earned

1,333,641

2,581,429

Adjusted EBITDA(1)

157,101

               1,586,562

Free Cash Flow(1)

                    52,232

               (639,064)

(Loss)/Profit for the period

            (3,792,281)

            (3,190,773)

Basic Earnings/(Loss) per share

                 (0.0357)

                 (0.0306)

Diluted Earnings/(Loss) per share

                 (0.0357)

                 (0.0306)

Weighted basic average number of shares outstanding

           106,297,830

           104,227,591

Royalty agreements acquired in period

98,130

5,373,594

  • Adjusted EBITDA and Free cash flow are non-IFRS measures. Refer to section Definition of Non-IFRS Measures for further explanation and definitions.

Revenues

Revenues were $(3,442,000) for Q1 2017, compared to $(2,833,000) for the same period in 2016. With the adoption of IFRS 9, certain non-cash items are recognized in revenue. Revenues were negatively impacted by net non-cash items of $4,793,000 compared to $5,451,000 for the same period in 2016. This non-cash amount of $4,793,000 relates to $1,036,000 for an unrealized gain from the change in fair value of royalty agreements acquired and promissory notes receivable which is offset by a realized loss of $5,145,000 from investments written-off and unrealized foreign exchange loss of $685,000. The realized loss from investments written off relates to two investments (BG Furniture Inc. and PFO Global Group) that were written-off in Q1 2017 as the recovery is expected to be small. The unrealized foreign exchange loss related to the translation of the royalty agreements acquired and promissory notes receivable denominated in U.S. dollars and reflects the movement in the exchange rate from $1.3427 at December 31, 2016 to $1.3299 at March 31, 2017.

Royalty Payment Income and Interest Income Earned

Royalty payment income plus interest income earned was $1,334,000 for Q1 2017, compared to $2,581,000 in the same period in 2016. The change was due to no royalty payment income revenue recognized in Q1 2017 from eight investees that have failed to pay royalties for at least three months. Management believes that the core companies from its portfolio will continue to contribute free cash flow(1) on a regular basis as the portfolio matures.

Operating Expense

Total operating expenses were $1,251,000 for Q1 2017, compared to $1,058,000 for the same period in 2016. The $193,000 increase is due to an once-off $400,000 HST provision expense offset by $85,000 lower salaries due to management team taking a lower salary and two fewer employees, lower professional fees of $69,000 and lower office and general administrative expenses of $36,000.

Adjusted EBITDA(1)

Adjusted EBITDA(1) was $157,000 for Q1 2017, compared to $1,587,000 for the same period in 2016. The change was due to the lower royalty payment income and the HST provision expense, each of which are referenced above.

Free Cash Flow(1)

Free cash flow(1) was $52,000 for Q1 2017, compared to negative $639,000 for the same period in 2016. The improvement was due to the crystallization of short-term working capital timing differences of $1,112,000 in the prior period, Q1 2016, as well as higher income tax payable of $255,000 in Q1 2016. These improvements were partially offset by lower royalty payment income received of $810,000 in Q1 2017.

Income (Loss) After Taxes

Income (Loss) after taxes was $(3,792,000) for Q1 2017, compared to $(3,191,000) in the same period in 2016. The change was due to an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable (net of realized loss from investments written-off) of $1,189,000, lower royalty payment income of $1,172,000 and the once-off $400,000 HST provision expense in Q1 2017. The impact of these items was partially offset by a lower unrealized foreign exchange loss of $1,848,000.

Assets

 

 As at March 31, 2017

 As at December 31, 2016

Cash and cash equivalents

$6,609,776

$6,202,412

Royalty agreements acquired and promissory notes

32,563,987

37,562,379

Total assets

46,303,933

              49,426,466

Outlook

The Company has invested more than $66 million of capital in 36 portfolio companies, generated Adjusted EBITDA(1) of $16.6 million and has generated free cash flow(1) of $8.1 million since inception in July 2013. The core of the portfolio has reached a scale at which it is generating Adjusted EBITDA(1) .

Grenville’s royalty agreements with its portfolio companies generated Adjusted EBITDA(1) to the Company of approximately $0.2 million for the three-month period ended March 31, 2017. As of May 10, 2017, the Company estimates that for the month of April 2017, royalty payment income, interest earned and Contract Buyout gain will be $3.35 million, Free Cash Flow will be $3.6 million and Adjusted EBITDA will be $3.2 million.

Based on information available as of May 10, 2017, management believes that there are additional investments in the portfolio that represent Contract Buyout opportunities in the next few quarters. The Company believes that the potential gross amount that could be received from these Contract Buyouts is up to $4.0 million spread over the next few quarters. The Company believes this would significantly increase Adjusted EBITDA(1) up to $2.0 million and Free Cash Flow(1) up to $1.4 million. Including the cash balance as of May 10, 2017, of $9.8 million, the available capital for investment in new companies would be up to $13.1 million. Given the nature of Contract Buyouts, the timing and the amount of Contract Buyouts are uncertain and any estimates included here may vary either positively or negatively.

Operating expenses (excluding share-based compensation and HST provision expense) for Q1 2017, were approximately $0.25 million per month and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q2 2017.

Grenville’s unique capital offering continues to fill an expansive niche in the North American small to medium sized enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, management is confident the Company will be able to add new portfolio companies to its existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville’s financial statements and management’s discussion and analysis for the three-month period ended March 31, 2017, will be filed today on SEDAR at www.sedar.com and also available on Grenville’s website at www.grenvillesrc.com.

(1)  Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details

Grenville will host a conference call to discuss these results at 8:00 a.m. Eastern Time, Thursday, May 11, 2017. Participants should call (647) 427-2311 or (866) 521-4909 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 17234196. The replay recording will be available until 11:59 p.m. Eastern Time, May 18, 2017.

An audio recording of the conference call will be also available on the investors’ page of Grenville’s website at grenvillesrc.com.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the amount and timing of the payment of dividends by the Company; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

May 9, 2017

Grenville Strategic Royalty Announces $1,500,000 Royalty Agreement with ConnectAndSell, Inc.

Grenville Strategic Royalty Announces $1,500,000 Royalty Agreement with ConnectAndSell, Inc.

TORONTO, Ontario, May 8, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with ConnectAndSell, Inc. (“ConnectAndSell”) to provide US$1,500,000 in growth capital.

ConnectAndSell, a Silicon Valley–based corporation established in 2007, has developed the world’s most advanced on-demand sales-acceleration platform. ConnectAndSell’s technology-enabled service overcomes the limitations of commonly used predictive and power dialers and increases the average number of live conversations per rep by a factor of 8-10X. The company achieves this through a combination of patented technology and minimal human agent touch. To date, ConnectAndSell has made more than 100 million dials and delivered over five million conversations to more than one thousand B2B customers, ranging from aggressive startups to the most established enterprises.

“With over 100 million fully navigated dials executed for its customers, ConnectAndSell has clearly demonstrated the value of its sales acceleration platform, earning recognition by Forbes Magazine as one of the 10 Most Innovative Companies to Watch in 2016,” said Grenville CEO Steve Parry. “We are investing with this management team of highly regarded Silicon Valley veterans including Chris Beall, Shawn McLaren and Jonti McLaren because they have demonstrated their commitment to the enterprise by growing the business with their own capital. Our non-dilutive royalty product, an alternative to traditional venture capital, is a very good fit with their continuing objective to retain strong ownership while accelerating growth.”

About ConnectAndSell, Inc.

ConnectAndSell, a Silicon Valley–based corporation established in 2007, has developed the world’s most advanced on demand sales-acceleration platform. ConnectAndSell’s technology-enabled service overcomes the limitations of commonly used predictive dialers and increases the average of number of live conversations per rep by a factor of 8-10X. The company achieves this through a combination of patented technology and minimal human agent touch.

 About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

May 4, 2017

Notice of Grenville Strategic Royalty’s First Quarter 2017 Financial Results Conference Call

Notice of Grenville Strategic Royalty’s First Quarter 2017 Financial Results Conference Call

– Financial results to be released after markets on Wednesday, May 10, 2017 –

TORONTO, Ontario, May 3, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its first quarter 2017 financial after the markets close on Wednesday, May 10, 2017. Mr. Steve Parry, Chief Executive Officer, and Mr. Donnacha Rahill, Chief Financial Officer, will host a conference call at 8:00 a.m. ET the next day, Thursday, May 11, 2017, to review the results. A question and answer session will follow the corporate update.

CONFERENCE CALL DETAILS

DATE:                                          Thursday, May 11, 2017

TIME:                                           8:00 AM Eastern Time

DIAL IN NUMBER:                     647-427-2311 or 866-521-4909

TAPED REPLAY:                         416-621-4642 or 800-585-8367

REFERENCE NUMBER:            17234196
A recording of the call will be archived on the Company’s website at www.grenvillesrc.com/financials/ .

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steve Parry

Chief Executive Officer

Tel: (416) 777-0383

April 26, 2017

Grenville Strategic Royalty Announces Restructuring of Lattice Biologics Investment

Grenville Strategic Royalty Announces Restructuring of Lattice Biologics Investment

TORONTO, Ontario, April 26, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced that, subject to the approval of the TSV Venture Exchange, 18,246,600 common shares (“Shares”) of Lattice Biologics Ltd (TSXV: LBL) (“Lattice”) will be issued to the Company at an issue price of CDN$0.20 in exchange for the extinguishment of USD$2,000,000 of Grenville’s original royalty investment in Lattice and USD$700,000 of overdue royalty payments owing by Lattice to Grenville under the existing royalty agreement between the parties. Immediately following the issuance of the Shares, Grenville expects that it will hold approximately 19.7% of the total issued and outstanding common shares of Lattice. The Shares will be subject to a four-month hold period under applicable securities laws.

Pursuant to the transaction, the existing royalty agreement will be terminated and additional overdue royalty payments of US$69,512 will be extinguished. The remaining USD$1,000,000 of the original royalty investment will be converted to a new royalty equal to 1.25% of the revenue of Lattice, payable quarterly as and when cash and cash equivalents of Lattice for a quarter exceed the cash and cash equivalents of Lattice for the previous quarter by at least USD$100,000.
In addition, the parties have agreed to amend the secured note in the principal amount of USD$700,000 issued by Lattice to Grenville on July 31, 2015 (the “Secured Note”) to extend the maturity date until April 24, 2022, and to change the interest rate from 12.5% per annum to 4.244% per annum. Accrued interest owing under certain unsecured promissory notes issued by Lattice to Grenville will also be extinguished.

“Lattice has made good progress on their development of new products,” said Grenville CEO Steve Parry. “Based on this progress, Grenville believes that transitioning our investment to a blend of equity, royalty and debt provides the best opportunity for positive financial returns for Grenville’s shareholders while improving Lattice’s balance sheet for future growth opportunities.”
Completion of the transaction is subject to all necessary approvals, including the approval of the TSX Venture Exchange.

About Grenville
Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:

Grenville Strategic Royalty Corp.:
Steven Parry
Chief Executive Officer
Tel: (416) 777-0383

Annoucements - Corporate Filing

August 8, 2017

Grenville Strategic Royalty Announces 2017 Second Quarter Results

Grenville Strategic Royalty Announces 2017 Second Quarter Results

Records Royalty Payment Income of $1.0 million and Free Cash Flow of $3.5 million in Q2 2017

TORONTO, Aug. 08, 2017 (GLOBE NEWSWIRE) — Grenville Strategic Royalty Corp. (TSX-V:GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three- and six-month periods ended June 30, 2017. Financial references are in Canadian dollars unless otherwise specified.

2017 Second Quarter Financial Highlights

  • Royalty Payment Income of $1,026,000
  • Adjusted EBITDA(1) of $3,372,000
  • Free Cash Flow(1) of $3,517,000

Operational Highlights

  • Closed five new investments, consisting of US$150,000 in MedWorxs LLC, $125,000 in Fixt Wireless Inc., US$1,500,000 in ConnectAndSell, Inc., US$350,000 in Kare Intellex Inc. and US$500,000 in Frequentz, Inc., and one follow-on investment of US$125,000 in Factor 75
  • Completed a Contract Buyout of $5 million, plus royalties earned, on the $2 million investment in Aquam Corporation
  • Acquired 18.2 million shares in Lattice Biologics Ltd at an issue price of $0.20 per share in exchange for the extinguishment of the US$2,000,000 royalty agreement and US$700,000 in overdue royalty payments
  • Closed after the end of the quarter one new investment in Hybrid Financial Ltd. for $425,000

“We generated positive free cash flow again this quarter as the performing investments and our cost restructuring have established a sustainable path forward for the business. In total, we have generated more than $41 million in cash from the nearly $68 million invested to date,” said Steve Parry, Chief Executive Officer of Grenville. “The Aquam buyout represents our seventh successful Contract Buyout, which provide non-dilutive cash to redeploy into new investments. The five new investments during the quarter and one new investment after the end of the quarter demonstrate we have returned to a consistent pace of capital deployment. We have sufficient cash on hand to continue this pace through calendar 2017, with a robust pipeline of new opportunities that align with the investment criteria of our new investment model that we implemented in mid-2016. We continue to focus on generating monthly royalty income above $400,000 where the business generates sustainable free cash flows.”

Financial Highlights

Canadian dollars Three months ended
June 30, 2017
Three months ended
June 30, 2016
Revenues $   (2,067,408) $   1,290,572
Royalty Payment Income and Interest and Fee Income Earned 1,068,560 2,096,718
Adjusted EBITDA(1)   3,371,884   507,700
Free Cash Flow(1)   3,517,919   340,161
(Loss) for the period   (2,456,208)   (633,250)
Basic (Loss) per share   (0.0231)   (0.0060)
Diluted (Loss) per share   (0.0231)   (0.0060)
Weighted basic average number of shares outstanding   106,317,656   106,267,252
Royalty agreements acquired in period 3,695,503 427,575

(1) Adjusted EBITDA and Free cash flow are non-IFRS measures. Refer to section Definition of Non-IFRS Measures for further explanation and definitions.

Revenues
Revenues were $(2,067,000) and $(5,510,000) for the three-month (Q2 2017) and six-month (YTD 2017) periods ended June 30, 2017, respectively, compared to $1,291,000 and $(1,543,000) for the corresponding periods in 2016. With the adoption of IFRS 9, certain non-cash items are recognized in revenue. Revenues in the quarterly period were negatively impacted by net non-cash items of $3,135,000 made up of $1,213,000 of an unrealized loss in writing-down the fair value of royalty agreements acquired and promissory notes receivable, $1,432,000 for the unrealized loss in the change in the fair value of the shares held in Lattice Biologics Ltd. and the balance for unrealized foreign exchange loss.

Royalty Payment Income and Interest and Fee Income Earned
Royalty payment income plus interest and fee income earned was $1,069,000 and $2,419,000 for Q2 2017 and YTD 2017, respectively, compared to $2,097,000 and $4,715,000 for the corresponding periods in 2016. The change in the quarterly period was due to no royalty payment income recognized in Q2 2017 from seven investees that have failed to pay royalties for at least three months compared to $825,000 of income recognized from this group in the same period last year. Management believes that the core companies from its portfolio will continue to contribute free cash flow(1) on a regular basis as the portfolio matures.

Operating Expense
Total operating expenses were $803,000 and $2,054,000 for Q2 2017 and YTD 2017, respectively, compared to $1,657,000 and $2,715,000 for the corresponding periods in 2016. The $854,000, or 52%, decrease was due to an overall $179,000 decrease in expenses in Q2 2017 and the $675,000 contract payment made to the former Chief Executive Officer in the prior year period.

Adjusted EBITDA(1) 
Adjusted EBITDA(1) was $3,372,000 and $3,529,000 for Q2 2017 and YTD 2017, respectively, compared to $508,000 and $2,094,000 for the corresponding periods in 2016. The improvement in the quarterly period is primarily due to the $3,000,000 realized gain on the Aquam Contract Buyout and lower operating expenses.

Free Cash Flow(1)
Free cash flow(1) was $3,518,000 and $3,570,000 for Q2 2017 and YTD, respectively, compared to $340,000 and $(251,000) for the corresponding periods in 2016. The improvement in the quarterly period is primarily due to the $3,000,000 realized gain on the Aquam buyout.

Loss After Taxes
Loss after taxes was $2,456,000 and $6,248,000 for Q2 2017 and YTD 2017, respectively, compared to $633,000 and $3,824,000 for the corresponding periods in 2016. The change in the quarterly period was due to an increase of $2,150,000 in the realized loss from investments written-off, lower royalty payment income of $945,000, higher unrealized foreign exchange loss of $334,000, which was partially offset by a higher unrealized gain of $922,000 from investments derecognized and lower operating costs.

Assets

   As at June 30, 2017  As at December 31, 2016
Cash and cash equivalents $ 7,984,838 $ 6,202,412
Royalty agreements acquired and promissory notes 25,376,712 37,562,379
Equity securities in in investee companies 2,190,617
Total assets 43,685,117   49,426,466

Outlook

The Company has invested almost $68 million of capital in 39 portfolio companies, generated Adjusted EBITDA(1) of $19.5 million and generated free cash flow(1) of $11.6 million since inception in July 2013. The core of the portfolio has reached a scale at which it is generating Adjusted EBITDA(1) .

Grenville’s royalty agreements with its portfolio companies generated Adjusted EBITDA(1) to the Company of approximately $3.4 million, including the $3.0 million Contract Buyout of Aquam, for the three-month period ended June 30, 2017. As of August 8, 2017, the Company estimates that for the month of July 2017, royalty payment income, interest and fee income will be $350,000, Free Cash Flow will be $50,000 and Adjusted EBITDA will be $100,000.

Based on information available as of August 8, 2017, management believes that there are additional investments in the portfolio that represent Contract Buyout opportunities. The Company believes that the potential gross amount that could be received from these Contract Buyouts is up to $4.0 million. The Company believes this would significantly increase Adjusted EBITDA(1) up to $2.0 million and Free Cash Flow(1) up to $1.4 million. Given the nature of Contract Buyouts, the timing and the amount of Contract Buyouts are uncertain and any estimates included here may vary either positively or negatively.

Operating expenses (excluding share-based compensation) for Q2 2017, were approximately $245,000 per month and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q3 2017. The Company’s cash position as at August 8, 2017, is approximately $8.1 million.

Grenville’s unique capital offering continues to fill an expansive niche in the North American small to medium sized enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, management is confident the Company will be able to add new portfolio companies to its existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville’s financial statements and management’s discussion and analysis for the three-month period ended June 30, 2017, will be filed today on SEDAR at www.sedar.com and also available on Grenville’s website at www.grenvillesrc.com.

(1)  Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details

Grenville will host a conference call to discuss these results at 8:00 a.m. Eastern Time, Wednesday, August 9, 2017. Participants should call (647) 427-2311 or (866) 521-4909 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 61059448. The replay recording will be available until 11:59 p.m. Eastern Time, August 16, 2017.

An audio recording of the conference call will be also available on the investors’ page of Grenville’s website at grenvillesrc.com.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the amount and timing of the payment of dividends by the Company; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact: 

Grenville Strategic Royalty Corp.:
Steven Parry
Chief Executive Officer
Tel: (416) 777-0383

August 2, 2017

Notice of Grenville Strategic Royalty’s Second Quarter 2017 Financial Results Conference Call

Notice of Grenville Strategic Royalty’s Second Quarter 2017 Financial Results Conference Call

– Financial results to be released after markets on Tuesday, August 8, 2017 –

TORONTO, Ontario, August 2, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its second quarter 2017 financial results after the markets close on Tuesday, August 8, 2017. Mr. Steve Parry, Chief Executive Officer, and Mr. Donnacha Rahill, Chief Financial Officer, will host a conference call at 8:00 a.m. ET the next day, Wednesday, August 9, 2017, to review the results. A question and answer session will follow the corporate update.

CONFERENCE CALL DETAILS

DATE:                                          Wednesday, August 9, 2017

TIME:                                           8:00 AM Eastern Time

DIAL IN NUMBER:                     647-427-2311 or 866-521-4909

TAPED REPLAY:                         416-621-4642 or 800-585-8367

REFERENCE NUMBER:            61059448

A recording of the call will be archived on the Company’s website at www.grenvillesrc.com/financials/ .

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For further information, please contact:

Steve Parry

Chief Executive Officer

Tel: (416) 777-0383

May 10, 2017

Grenville Strategic Royalty Announces 2017 First Quarter Results

Grenville Strategic Royalty Announces 2017 First Quarter Results

– Records Royalty Payment Income of $1.3 million in Q1 2016 –

TORONTO, Ontario, May 10, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three-month period ended March 31, 2017 (“Q1 2017”). Financial references are in Canadian dollars unless otherwise specified.

2017 First Quarter Financial Highlights

  • Royalty Payment Income of $1,333,000
  • Adjusted EBITDA(1) of 157,000
  • Free Cash Flow(1) of $52,000

Operational Highlights

  • Closed four investments subsequent to the end of the quarter, consisting of three new investments of US$150,000 in Medworxs LLC, $125,000 in Fixt Wireless Inc. and US$1.5 million in ConnectAndSell, Inc. and one follow-on investment of US$125,000 in Factor 75
  • Announced a Contract Buyout of $5 million, plus royalties earned, on the $2 million investment in Aquam Corporation, subsequent to the end of the quarter

“Our results are starting to reflect the important improvements we have made in the business during the last twelve months. We have reduced our cost structure to a point where we generate cash on a consistent basis. While we are still seeing fair value decreases on the balance sheet related to the legacy portfolio, we are generating significant free cash flows related to Contract Buyouts, including the April buyout of Aquam. The Aquam buyout increased capital available for new investments to approximately $10 million, which along with investments by our joint venture partners is sufficient to fund a robust program in 2017,” said Steve Parry, Chief Executive Officer of Grenville.  “To put this in perspective, we have generated more than $40 million in cash from the $66 million invested to date. The core positions within the portfolio are producing and align well with our go-forward investment model reflecting the profound learning we have extracted from the first four years of deploying this unique SME royalty product.”

Financial Highlights

Canadian dollars

Three months ended March 31, 2017

Three months ended March 31, 2016

Revenues

$          (3,442,258)

$          (2,833,267)

Royalty Payment Income and Interest Income Earned

1,333,641

2,581,429

Adjusted EBITDA(1)

157,101

               1,586,562

Free Cash Flow(1)

                    52,232

               (639,064)

(Loss)/Profit for the period

            (3,792,281)

            (3,190,773)

Basic Earnings/(Loss) per share

                 (0.0357)

                 (0.0306)

Diluted Earnings/(Loss) per share

                 (0.0357)

                 (0.0306)

Weighted basic average number of shares outstanding

           106,297,830

           104,227,591

Royalty agreements acquired in period

98,130

5,373,594

  • Adjusted EBITDA and Free cash flow are non-IFRS measures. Refer to section Definition of Non-IFRS Measures for further explanation and definitions.

Revenues

Revenues were $(3,442,000) for Q1 2017, compared to $(2,833,000) for the same period in 2016. With the adoption of IFRS 9, certain non-cash items are recognized in revenue. Revenues were negatively impacted by net non-cash items of $4,793,000 compared to $5,451,000 for the same period in 2016. This non-cash amount of $4,793,000 relates to $1,036,000 for an unrealized gain from the change in fair value of royalty agreements acquired and promissory notes receivable which is offset by a realized loss of $5,145,000 from investments written-off and unrealized foreign exchange loss of $685,000. The realized loss from investments written off relates to two investments (BG Furniture Inc. and PFO Global Group) that were written-off in Q1 2017 as the recovery is expected to be small. The unrealized foreign exchange loss related to the translation of the royalty agreements acquired and promissory notes receivable denominated in U.S. dollars and reflects the movement in the exchange rate from $1.3427 at December 31, 2016 to $1.3299 at March 31, 2017.

Royalty Payment Income and Interest Income Earned

Royalty payment income plus interest income earned was $1,334,000 for Q1 2017, compared to $2,581,000 in the same period in 2016. The change was due to no royalty payment income revenue recognized in Q1 2017 from eight investees that have failed to pay royalties for at least three months. Management believes that the core companies from its portfolio will continue to contribute free cash flow(1) on a regular basis as the portfolio matures.

Operating Expense

Total operating expenses were $1,251,000 for Q1 2017, compared to $1,058,000 for the same period in 2016. The $193,000 increase is due to an once-off $400,000 HST provision expense offset by $85,000 lower salaries due to management team taking a lower salary and two fewer employees, lower professional fees of $69,000 and lower office and general administrative expenses of $36,000.

Adjusted EBITDA(1)

Adjusted EBITDA(1) was $157,000 for Q1 2017, compared to $1,587,000 for the same period in 2016. The change was due to the lower royalty payment income and the HST provision expense, each of which are referenced above.

Free Cash Flow(1)

Free cash flow(1) was $52,000 for Q1 2017, compared to negative $639,000 for the same period in 2016. The improvement was due to the crystallization of short-term working capital timing differences of $1,112,000 in the prior period, Q1 2016, as well as higher income tax payable of $255,000 in Q1 2016. These improvements were partially offset by lower royalty payment income received of $810,000 in Q1 2017.

Income (Loss) After Taxes

Income (Loss) after taxes was $(3,792,000) for Q1 2017, compared to $(3,191,000) in the same period in 2016. The change was due to an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable (net of realized loss from investments written-off) of $1,189,000, lower royalty payment income of $1,172,000 and the once-off $400,000 HST provision expense in Q1 2017. The impact of these items was partially offset by a lower unrealized foreign exchange loss of $1,848,000.

Assets

 

 As at March 31, 2017

 As at December 31, 2016

Cash and cash equivalents

$6,609,776

$6,202,412

Royalty agreements acquired and promissory notes

32,563,987

37,562,379

Total assets

46,303,933

              49,426,466

Outlook

The Company has invested more than $66 million of capital in 36 portfolio companies, generated Adjusted EBITDA(1) of $16.6 million and has generated free cash flow(1) of $8.1 million since inception in July 2013. The core of the portfolio has reached a scale at which it is generating Adjusted EBITDA(1) .

Grenville’s royalty agreements with its portfolio companies generated Adjusted EBITDA(1) to the Company of approximately $0.2 million for the three-month period ended March 31, 2017. As of May 10, 2017, the Company estimates that for the month of April 2017, royalty payment income, interest earned and Contract Buyout gain will be $3.35 million, Free Cash Flow will be $3.6 million and Adjusted EBITDA will be $3.2 million.

Based on information available as of May 10, 2017, management believes that there are additional investments in the portfolio that represent Contract Buyout opportunities in the next few quarters. The Company believes that the potential gross amount that could be received from these Contract Buyouts is up to $4.0 million spread over the next few quarters. The Company believes this would significantly increase Adjusted EBITDA(1) up to $2.0 million and Free Cash Flow(1) up to $1.4 million. Including the cash balance as of May 10, 2017, of $9.8 million, the available capital for investment in new companies would be up to $13.1 million. Given the nature of Contract Buyouts, the timing and the amount of Contract Buyouts are uncertain and any estimates included here may vary either positively or negatively.

Operating expenses (excluding share-based compensation and HST provision expense) for Q1 2017, were approximately $0.25 million per month and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q2 2017.

Grenville’s unique capital offering continues to fill an expansive niche in the North American small to medium sized enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, management is confident the Company will be able to add new portfolio companies to its existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville’s financial statements and management’s discussion and analysis for the three-month period ended March 31, 2017, will be filed today on SEDAR at www.sedar.com and also available on Grenville’s website at www.grenvillesrc.com.

(1)  Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details

Grenville will host a conference call to discuss these results at 8:00 a.m. Eastern Time, Thursday, May 11, 2017. Participants should call (647) 427-2311 or (866) 521-4909 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 17234196. The replay recording will be available until 11:59 p.m. Eastern Time, May 18, 2017.

An audio recording of the conference call will be also available on the investors’ page of Grenville’s website at grenvillesrc.com.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the amount and timing of the payment of dividends by the Company; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

May 4, 2017

Notice of Grenville Strategic Royalty’s First Quarter 2017 Financial Results Conference Call

Notice of Grenville Strategic Royalty’s First Quarter 2017 Financial Results Conference Call

– Financial results to be released after markets on Wednesday, May 10, 2017 –

TORONTO, Ontario, May 3, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its first quarter 2017 financial after the markets close on Wednesday, May 10, 2017. Mr. Steve Parry, Chief Executive Officer, and Mr. Donnacha Rahill, Chief Financial Officer, will host a conference call at 8:00 a.m. ET the next day, Thursday, May 11, 2017, to review the results. A question and answer session will follow the corporate update.

CONFERENCE CALL DETAILS

DATE:                                          Thursday, May 11, 2017

TIME:                                           8:00 AM Eastern Time

DIAL IN NUMBER:                     647-427-2311 or 866-521-4909

TAPED REPLAY:                         416-621-4642 or 800-585-8367

REFERENCE NUMBER:            17234196
A recording of the call will be archived on the Company’s website at www.grenvillesrc.com/financials/ .

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steve Parry

Chief Executive Officer

Tel: (416) 777-0383

November 21, 2016

Grenville Announces Option Grants

Grenville Announces Option Grants

TORONTO, Ontario, November 21, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) announces that as part of its stock option incentive program, which is designed to promote an ownership perspective among its executive officers and directors and encourage executive retention, it has granted options to acquire 2,175,000 common shares of the Company to certain executive officers and newly appointed directors of the Company. In addition, the Company has granted options to acquire an aggregate of 150,000 common shares of the Company to non-executive employees of the Company. All of the options are exercisable at a price of CDN $0.165 per common share and, other than options granted to newly appointed directors of the Company, vest quarterly in equal tranches based on the achievement of certain time and performance metrics. The options have a term of 5 years and are subject in all respects to the terms of Grenville’s stock option plan.

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.
Steve Parry
Chief Executive Officer
tel: (416) 777-0383

November 15, 2016

Grenville Strategic Royalty Announces 2016 Third Quarter Results and Board Changes

Grenville Strategic Royalty Announces 2016 Third Quarter Results and Board Changes

– Records Royalty Payment Income of $2.0 million –

TORONTO, Ontario, November 15, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three-month (“Q3 2016”) and nine-month (“YTD 2016”) periods ended September 30, 2016. Financial references are in Canadian dollars unless otherwise specified.

2016 Third Quarter Financial Highlights

  • Royalty Payment Income of $1,954,000
  • Adjusted EBITDA(1) of $1,376,000
  • Free Cash Flow(1) of $164,000
“Our business model continues to generate cash – which is the fundamental metric by which to judge Grenville’s performance. The cash generated from the portfolio is available for re-investment in new opportunities now that we have reduced our ongoing expense structure and suspended the dividend,” said Steve Parry, Chief Executive Officer of Grenville. “Our goal remains the same, enhance margins and cash flow to generate shareholder value. The agreements with our two co-investment partners are an innovative method to continue to diversify the portfolio and leverage our capital to support the growth objectives of our investees. We have identified a number of attractive opportunities and expect to deploy capital in the fourth quarter. As contract buyouts arise in the coming months, they provide another non-dilutive source of capital to re-invest in new opportunities alongside our co-investment partners.”


Changes to the Board of Directors
The Board of Directors has appointed Mr. Peter Kampian, CPA, CA, as a Director of the Board, subsequent to the resignation of Ms. Andrea Zaradic, effective November 14, 2016. Mr. Kampian has a long track record as a financial executive with a number of Canadian public companies. Mr. Kampian is currently the Chief Financial Officer of Mettrum Health Corp, and previously held the position of Vice President Finance with Superior Energy Management and Chief Financial Officer of Algonquin Income Fund where he led and supported debt and equity capital raising.

“Peter brings a wealth of public markets experience to our Board. His financial acumen and expertise in financial management, risk management and in capital markets adds to, and broadens, the skill set of the Board,” said Mr. Parry. “On behalf of the Board, I would like to thank Andrea for the commitment and dedication she brought to the Board through the Company’s formative period. The Board has undergone a significant renewal in the past few months and we believe the existing membership is well suited to lead Grenville as we continue to grow the portfolio and support SMEs across North America with non-dilutive royalty-based growth capital.”

Financial Highlights

Canadian dollars Three months ended September 30, 2016 Three months ended September 30, 2015 Nine months ended September 30, 2016 Nine months ended September 30, 2015
Revenues $             (854,503) $             6,631,036 $          (2,397,198) $           11,162,381
Royalty payment income and
Interest Income Earned
2,044,058 2,364,807 6,698,008 5,963,419
Adjusted EBITDA (1)                1,376,396                3,960,613                3,470,658                6,539,624
Free cash flow (1)                   163,992                2,654,803                  (97,540)                3,597,072
(Loss)/Profit for the period             (1,690,843)                4,021,100             (5,514,867)                5,838,903
Basic Earnings/(Loss) per share                  (0.0159)                     0.0407                  (0.0522)                     0.0680
Diluted Earnings/(Loss) per share                  (0.0159)                     0.0330                  (0.0522)                     0.0580
Royalty agreements acquired in period                   370,797                4,970,940                6,171,924              18,130,210

 

  1. EBITDA, Adjusted EBITDA, Free cash flow and weighted average royalty rate are non-IFRS measures. Refer to section Definition of Non-IFRS Measures for further explanation and definitions.

Revenues
Revenues were $(855,000) and $(2,397,000) for Q3 2016 and YTD 2016, respectively, compared to $6,631,000 and $11,162,000 for the corresponding periods last year. With the adoption of IFRS 9, certain non-cash items are recognized in revenue. Revenues in Q3 2016 were impacted by a total net non-cash losses of $3,461,000 related to an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable and realized loss from investments written off. These losses were partially offset by an unrealized foreign exchange gain of $545,000. The realized loss from investments written off relates to two investments where in previous reporting periods the fair value of the investment was written down to nil. Revenues in the YTD 2016 period were impacted by a total net non-cash losses of $9,272,000 related to an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable of $5,150,000, $1,841,000 of realized loss from investments written off, and $2,182,000 of unrealized foreign exchange loss.

Royalty Payment Income and Interest Income Earned
Royalty payment income plus interest income earned was $2,044,000 and $6,698,000 for Q3 2016 and YTD 2016, respectively, compared to $2,365,000 and $5,963,000 in the corresponding periods last year. The change in the YTD period is primarily due to an increase in the total aggregate investments of 48.1% since the September 30, 2015. Management believes that the core of portfolio companies will continue to contribute Free Cash Flow(1) on a regular basis as the portfolio matures.

Operating Expense
Total operating expenses were $876,000 and $3,591,000 for Q3 2016 and YTD 2016, respectively, compared with $721,000 and $1,913,000 for the corresponding periods last year. The change in the quarterly period is primarily due to increased professional fees, and general administrative expenses. The YTD change is due primarily to costs related to the departure of the former CEO, the cost of the increased number of employees including a new managing director and investment team member hired in 2015 and a salary increase starting January 1, 2016 following an executive compensation review and a one-time consultancy expense in the YTD 2016 period for the IFRS 9 conversion and portfolio fair value valuation reports.

Adjusted EBITDA(1)

Adjusted EBITDA(1) was $1,376,000 and $3,471,000 for Q3 2016 and YTD 2016, respectively, compared to $3,961,000 and $6,540,000 for the corresponding periods last year. The changes were primarily due to lower realized gain on contract buyouts of $2,098,000 in each period and increased operating costs (excluding share-based payment expense) of $132,000 and $1,607,000 for Q3 2016 and YTD 2016, respectively, which was partially offset by $515,000 of higher royalty payment income in the YTD period.
Free Cash Flow(1)
The Free Cash Flow(1) was $164,000 and $(98,000) for Q3 2016 and YTD 2016, respectively, compared to $2,655,000 and $3,597,000 for the corresponding periods last year. The change in Free Cash Flow(1) during the periods was primarily due to realized gains of $2,197,000 in Q3 2015 and YTD 2015, respectively. Also, impacting the YTD 2016 figure were short-term timing differences at the end of December 2015, including $500,000 for bonuses accrued and expensed in 2015 but paid in February 2016 and $612,000 in respect of sales taxes for 2015 paid at the end of January 2016.

Income (Loss) After Taxes

Income (Loss) after taxes was $(1,691,00) and $(5,515,000) for Q3 2016 and YTD 2016, respectively, compared to $4,021,000 and $5,839,000 in the corresponding periods last year. The changes were due to the aforementioned changes in the fair value of royalty agreements acquired and promissory notes receivable, the realized losses on investments written off and the unrealized foreign exchange losses.


Assets

 As at September 30, 2016  As at December 31, 2015
Cash and cash equivalents $7,786,000 $16,897,000
Royalty agreements acquired and promissory notes 43,540,000 46,449,000
Total assets 55,171,000 64,545,000

 

Average Royalty Payment per Million Invested(1)
The average royalty payment per million invested(1) for the month of September 2016 was $147,000. The rolling twelve-month average royalty payment per million invested(1) was $266,000 for the period ended September 30, 2016.
The Company will cease reporting these metrics for the three months ended March 31, 2017.To view the bar graph accompanying this press release, please visit the following link:
http://media3.marketwire.com/docs/Grenville%20Graphic%201B.pdf
Portfolio Performance Profile
On a quarterly basis, the Company carries out a portfolio performance review of the portfolio of royalty agreements acquired and promissory notes. As of September 30, 2016, 74.3% of the investment portfolio has generated returns equal to or in excess of Grenville’s pricing level of 25%. As of September 30, 2016, as a percentage of total portfolio value the Bought Out category was 16.0% and the Above Target category was 14.8% – which includes $2,161,655 which was moved into the category during the quarter. The On Target category was 43.5% and the Off Target category was 20.5% – which includes $1,615,568 which was moved into the category during the quarter. The Loss category accounted for 5.2% of the portfolio value, which includes the $1,840,936 of unrealized loss written off during the quarter.

 

An outline of the portfolio for the periods ended September 30, 2016 and June 30, 2016, is as follows*:
http://media3.marketwire.com/docs/Grenville%20Graphic%201B.pdf

 

*: The $ amounts stated in the tables above reflect amounts invested in royalty agreements acquired and promissory notes per investee and are not measured or adjusted on a fair value basis as part of the Company’s adoption of IFRS 9.


Outlook

The Company has invested more than $63 million of capital in 31 portfolio companies, generated Adjusted EBITDA(1) of $15.3 million since inception in July 2013 and has generated Free Cash Flow(1) of $8.2 million. The core of the portfolio has reached a scale at which it is generating positive Free Cash Flow(1) and Adjusted EBITDA(1). The Company plans to make investments in certain industries where there are a higher likelihood of Contract Buyouts which previously has resulted in significant realized gains. Offsetting the Contract Buyouts, the Company has also experienced losses and underperforming investments which management anticipates will continue in the future which is consistent with expectations for an SME portfolio.

Grenville’s royalty agreements with its portfolio companies generated Adjusted EBITDA(1) to the Company of approximately $1.4 million for the three-month period ended September 30, 2016 and $3.5 million for the nine-month period ended September 30, 2016. As of November 15, 2016, the Company estimates the royalty payment income and interest earned for October 2016 will be $0.6 million which while lower than the run rate for the third quarter of 2016, is still sufficient to generate an estimated $0.4 million of Adjusted EBITDA(1) and $0.1 million of Free Cash Flow(1) for the month.

In October 2016, the Company announced arrangements with two partners that could co-invest with the Company in a syndication structure on future new investments originated by the Company. The co-investments will be incremental to any of the Company’s investment and the enable the Company to participate in a greater number of larger-sized investments. The arrangements enable the Company to continue to build a more diversified portfolio and generate stable returns with non-dilutive capital and earn fees through a license agreement.  The Company is entitled to a 50% participation in each investment with the co-investment partners entitled to 25 percent each. The partners may have a higher participation percentage if the Company wishes to have an interest lower than 50%.

Based on information available as of November 15, 2016, management believes that there are a number of investments in the Above Target category that may represent Contract Buyout opportunities in the next few quarters. There is no change in the guidance provided by the Company at the time of the Q2 2016 report  and the Company believes that the potential gross amount that could be received from these Contract Buyouts is up to $9 million. If the amounts that the Company believes are possible, this would significantly increase Adjusted EBITDA(1) up to $5 million and Free Cash Flow(1) up to $4 million. Including the cash balance as of November 15, 2016, of $7.3 million, the available capital for investment in new companies would be up to $16.3 million. Given the nature of Contract Buyouts, the timing and the amount of Contract Buyouts are uncertain and any estimates included here may vary either positively or negatively.

Operating expenses (excluding share-based payment expense) for Q2 2016, were approximately $0.26 million per month and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q4 2016.

Grenville’s unique capital offering continues to fill an expansive niche in the North American small to medium sized enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, management is confident the Company will be able to add new portfolio companies to its existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville’s financial statements and management’s discussion and analysis for the three-month and nine-month periods ended September 30, 2016 are filed on SEDAR at www.sedar.com and also available on Grenville’s website at www.grenvillesrc.com.
(1)  Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details
Grenville will host a conference call to discuss these results at 8:00 a.m. Eastern Time, Wednesday, November, 16, 2016. Participants should call (647) 427-2311 or (877) 521-4909 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 17231914. The replay recording will be available until 11:59 p.m. Eastern Time, November 23, 2016.

An audio recording of the conference call will also be available on the investors’ page of Grenville’s website at grenvillesrc.com.

About Grenville
Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the Company’s ability to pay dividends in the future and Anchorthe amount and timing of Anchorthose dividendsAnchor; the Company’s ability to successfully manage its joint venture relationshipsAnchor; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. 

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the Company’s ability to pay dividends in the future and the timing and amount of those dividends; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments and the concentration of a significant amount of the Company’s invested capital in a small number of investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings;
changes to the Company’s accounting policies and methods; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.


Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; and that the Company will have the ability to raise required equity and/or debt financing on acceptable terms. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.


The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.
Steve Parry
Chief Executive Officer
Tel: (416) 777-0383

 

September 8, 2016

Grenville Declares September 2016 Dividend

Grenville Declares September 2016 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, September 8, 2016 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of September 2016, representing $0.05 per share on an annualized basis. The dividend is payable on October 14, 2016 to shareholders of record on September 30, 2016. The ex-dividend date is September 28, 2016.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For more information, please contact:
Grenville Strategic Royalty Corp.:
Steve Parry
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

August 29, 2016

Grenville Strategic Royalty Announces 2016 Second Quarter Results

Grenville Strategic Royalty Announces 2016 Second Quarter Results

– Records Royalty Payment Income of $2.0 million –

 TORONTO, Ontario, August 29, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three-month (“Q2 2016”) and six-month (“YTD 2016”) periods ended June 30, 2016. Financial references are in Canadian dollars unless otherwise specified.

2016 Second Quarter Financial Highlights

  • Royalty Payment Income of $1,971,000
  • Adjusted EBITDA(1) of $508,000
  • Free Cash Flow(1) of $340,000

 2016 Second Quarter Portfolio Highlights

  • Average royalty payment per million invested(1) was $164,000 for the month of June 2016
  • Average total royalty income per million invested, including gains on Contract Buyouts, was $337,000 for the rolling twelve-month period ended June 30, 2016
  • Royalty agreements, follow-on financings and new loans acquired were $428,000 for Q2 2016, for an aggregate net value of acquired royalties and loans since inception to the end of Q2 2016 to $63,345,000
  • Negotiated updated contract terms with Bluedrop Performance Learning that provides additional upside for the portfolio

“We made significant progress on the plan we laid out in the first quarter. We have reduced operating costs and determined the business can be effectively managed at a cost of $2.4 million to $3.0 million per year.  We have extracted additional value from the existing portfolio as evidenced by the Bluedrop amendment. We have also identified new investment targets to generate additional cash flow,” said Steve Parry, Chief Executive Officer of Grenville. “However, we now believe that we will need more capital for additional investments to generate sufficient cash flow to complete our goal of growing the Company now that we have stabilized ‎the business.”

Mr. Parry continued, “Multiple alternatives exist to access new capital including cash flow from future Contract Buyouts or the use of senior debt. Based on discussions held to date, we believe we can raise senior debt at a reasonable cost for accretive investment opportunities. Both cash flow and senior debt sources may have an impact on the current dividend.  We continue to focus our business to maximize margins and cash flow‎ to enhance shareholder value.”

Financial Highlights

Canadian dollars Three months ended June 30, 2016 Three months ended June 30, 2015 Six
months ended June 30, 2016
Six
months ended June 30, 2015
Revenues $             1,290,572 $             1,753,427 $          (1,542,695) $             4,531,345
Royalty payment income and Interest Income Earned 2,072,750 2,093,571 4,653,949 3,598,612
Adjusted EBITDA (1)                   507,700                1,523,895                2,094,262                2,579,026
Free cash flow (1)                   340,161                   776,735                (250,696)                   942,269
(Loss)/Profit for the period                (633,250)                   468,891             (3,824,023)                1,817,803
Basic Earnings/(Loss) per share                  (0.0060)                     0.0051                  (0.0363)                     0.0229
Diluted Earnings/(Loss) per share                  (0.0060)                     0.0051                  (0.0363)                     0.0222
Royalty agreements acquired in period                   427,575                7,939,870                5,801,127              13,159,270

(1) EBITDA, Adjusted EBITDA, and Free cash flow are non-IFRS measures. Refer to section Definition of Non-IFRS Measures for further explanation and definitions.

Revenues

Revenues were $1,291,000 and $(1,543,000) for Q2 2016 and YTD 2016, respectively, compared to $1,753,000 and $4,531,000 for the corresponding periods last year. With the adoption of IFRS 9, certain non-cash items are recognized in revenue. Revenues in Q2 2016 were impacted by a net non-cash loss amount of $806,000 related to an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable as well as unrealized foreign exchange loss of $195,000. Revenues in the YTD 2016 period were impacted by a net non-cash loss amount of $6,257,000 related to $3,530,000 for an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable as well as $2,727,000 of unrealized foreign exchange loss due to the movement in the exchange rate from $1.3840 at December 31, 2015 to $1.2917 at June 30, 2016.

Royalty Payment Income and Interest Income Earned

Royalty payment income plus interest income earned was $2,073,000 and $4,654,000 for Q2 2016 and YTD 2016, respectively, compared to $2,094,000 and $3,599,000 in the corresponding periods last year. The change in the YTD period is primarily due to an increase in the total aggregate investments of 67.6% since the six-month period ended June 30, 2015. Management believes that the growing core of portfolio companies will continue to contribute income on a regular basis as the portfolio matures.

Operating Expenses

Total operating expenses were $1,657,000 and $2,715,000 for Q2 2016 and YTD 2016, respectively, compared with $672,000 and $1,193,000 for the corresponding periods last year. The change is primarily due to increased salary and benefits related to costs related to the departure of the former CEO, a new managing director, an additional investment team member, and a third-party executive compensation review that resulted in an increase for existing members as well as a one-time consultancy expense in the YTD 2016 period for the IFRS 9 conversion and portfolio fair value valuation reports.

Adjusted EBITDA(1)

Adjusted EBITDA was $508,000 and $2,094,000 for Q2 2016 and YTD 2016, respectively, compared to $1,524,000 and $2,579,000 for the corresponding periods last year. The changes were primarily due to increased operating expenses referenced above, partially offset in the YTD period by higher royalty payment income.

Free Cash Flow(1)

The free cash flow was $340,000 and $(251,000) for Q2 2016 and YTD 2016, respectively, compared to $777,000 and $942,000 for the corresponding periods last year. The change in free cash flow during the YTD period was primarily due to short-term timing differences, in particular, $500,000 for the 2015 accrued bonuses paid in Q1 2016 and $248,000 for royalty payments due at June 30, 2016 that were paid subsequent to the end of the period.

Income (Loss) After Taxes

Income (Loss) after taxes was $(633,00) and $(3,824,000) for Q2 2016 and YTD 2016, respectively, compared to $469,000 and $1,818,000 in the corresponding periods last year. The changes were due to the aforementioned changes in the fair value of royalty agreements acquired and promissory notes receivable and the unrealized foreign exchange loss.

Assets

   As at June 30, 2016  As at December 31, 2015
Cash and cash equivalents $7,503,000 $16,897,000
Royalty agreements acquired and promissory notes 46,932,000 46,449,000
Total assets 57,770,000 64,545,000

 

Average Royalty Payment per Million Invested(1)

The average royalty payment per million invested(1) for the month of June 2016 was $164,000 which was within the range outlined by management at the time of the Q1 2016 report.

The rolling twelve-month average royalty payment per million invested(1) was $337,000 for the period ended June 30, 2016.

To view the bar graph accompanying this press release, please visit the following link:

http://media3.marketwire.com/docs/Grenville829a.jpg

Portfolio Performance Profile

On a quarterly basis, the Company carries out a portfolio performance review of the portfolio of royalty agreements acquired and promissory notes. As of June 30, 2016, 79.8% of the investment portfolio has generated returns equal to or in excess of Grenville’s pricing level of 25%. As of June 30, 2016, as a percentage of total portfolio value the Bought Out category was 21.4% and the Above Target category was 10.9% – which includes $2,510,000 which was moved into the category during the quarter. The On Target category was 47.5% and the Off Target category was 17.1% – which includes $1,510,000 which was moved into the category during the quarter. The Loss category accounted for 3.1% of the portfolio value.

An outline of the portfolio for the periods ended June 30, 2016 and March 31, 2016, is as follows*: http://media3.marketwire.com/docs/Grenville829b.jpg

Outlook

The Company has invested more than $63 million of capital in 31 portfolio companies. Management is building a balanced portfolio using a pricing level of 25%. Contract Buyouts will continue to form a meaningful part of the Company’s annual revenue stream and the capital returned from Contract Buyouts represent the cheapest form of capital for growth. However, given their nature, the timing of buyouts and buydowns will be more irregular than the monthly royalty payments received by the Company. Offsetting the Contract Buyouts, the Company has experienced losses and underperforming investments which management anticipates will continue in the future consistent with expectations for an SME portfolio. The Company plans to mitigate investment losses and underperforming investments by designing a portfolio diverse of U.S. and Canadian dollar denominated investments and investments consisting of cyclical, neutral and defensive sectors as well as growth through new company investments. The core of the portfolio has reached a scale at which it is generating stable income, positive free cash flow (a non-IFRS measure, refer to Definition of Non-IFRS Measures for definition) and Adjusted EBITDA (a non-IFRS measure, refer to Definition of Non-IFRS Measures for definition).

Grenville’s royalty agreements with its portfolio companies generated Adjusted EBITDA (a non-IFRS measure, refer to Definition of Non-IFRS Measures for definition) to the Company of approximately $0.5 million for the three-month period ended June 30, 2016 and $2.09 million for the six-month period ended June 30, 2016. As of August 29, 2016, management estimates the royalty payment income and interest earned for July and August 2016 will total $1.43 million which is a higher run-rate than the second quarter of 2016, as a result of a negotiated increase in the monthly minimum monthly royalty with Bluedrop and higher royalties earned on other investments in the Above Target category. Based on information available as of August 29, 2016, management does not expect any further material unrealized losses on investments for the three-month period ended September 30, 2016.

Based on information available as of August 29, 2016, management believes that there are a number of investments in the Above Target category that may represent Contract Buyout opportunities in the next few quarters. Management believes that the potential gross amount that could be received from these Contract Buyouts is up to $9 million which, if realized in the amounts that management believes are possible, would significantly increase Adjusted EBITDA (a non-IFRS measure, refer to Definition of Non-IFRS Measures for definition) up to $5 million and Free Cash Flow (a non-IFRS measure, refer to Definition of Non-IFRS Measures for definition) up to $3.7 million. Given the nature of Contract Buyouts, the timing and the amount of Contract Buyouts are uncertain and any estimates included here may vary either positively or negatively.

Operating expenses for Q2 2016, were approximately $0.33 million per month excluding any exceptional non-recurring expense, and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q3 2016.

Grenville’s unique capital offering continues to fill an expansive niche in the North American small to medium enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, management is confident the Company will be able to add new portfolio companies to its existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville’s financial statements and management’s discussion and analysis for the three-month and six-month periods ended June 30, 2016 are filed on SEDAR at www.sedar.com and also available n Grenville’s website at www.grenvillesrc.com.

(1)  Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details
Grenville will host a conference call to discuss these results at 8:00 a.m. Eastern Time, Tuesday, August 30, 2016. Participants should call (647) 788-4922 or (877) 291-4570 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 70449917. The replay recording will be available until 11:59 p.m. Eastern Time, September 6, 2016.

An audio recording of the conference call will be also available on the Financials page of Grenville’s website at grenvillesrc.com.

About Grenville
Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements 

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the amount and timing of the payment of dividends by the Company; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

 Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:
Steve Parry
Chief Executive Officer
Tel: (416) 777-0383

 

August 23, 2016

Notice of Grenville Strategic Royalty’s Second Quarter 2016 Financial Results Conference Call

Notice of Grenville Strategic Royalty’s Second Quarter 2016 Financial Results Conference Call


Financial results to be released before market on Tuesday, August 30, 2016

TORONTO, Ontario, August 23, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its second quarter 2016 financial results before the market on Tuesday, August 30, 2016. Mr. Steve Parry, Chief Executive Officer, and Mr. Donnacha Rahill, Chief Financial Officer, will host a conference call at 8:00 a.m. ET that same day, Tuesday, August 30, 2016, to review the results. A question and answer session will follow the corporate update.

CONFERENCE CALL DETAILS

DATE:                                          Tuesday, August 30, 2016

TIME:                                           8:00 AM Eastern Time

DIAL IN NUMBER:                     647-788-4922 or 877-291-4570

TAPED REPLAY:                         416-621-4642 or 800-585-8367

REFERENCE NUMBER:            70449917

A recording of the call will be archived on the Company’s website at www.grenvillesrc.com/financials/

About Grenville
Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Contact Information
Steve Parry
Chief Executive Officer
Tel: (416) 777-0383

 

August 15, 2016

Grenville Declares August 2016 Dividend

Grenville Declares August 2016 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, August 11, 2016 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of August 2016, representing $0.05 per share on an annualized basis. The dividend is payable on September 15, 2016 to shareholders of record on August 31, 2016. The ex-dividend date is August 26, 2016.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For more information, please contact:

Grenville Strategic Royalty Corp.:
Steve Parry
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

July 14, 2016

Grenville Declares July 2016 Dividend

Grenville Declares July 2016 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, July 14, 2016 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of July 2016, representing $0.05 per share on an annualized basis. The dividend is payable on August 15, 2016 to shareholders of record on July 29, 2016. The ex-dividend date is July 27, 2016.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For more information, please contact:

Grenville Strategic Royalty Corp.:
Steve Parry
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

June 14, 2016

Grenville Declares June 2016 Dividend

Grenville Declares June 2016 Dividend

 

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, June 14, 2016 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of June 2016, representing $0.05 per share on an annualized basis. The dividend is payable on July 15, 2016 to shareholders of record on June 30, 2016. The ex-dividend date is June 28, 2016.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville
Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For more information, please contact:
Grenville Strategic Royalty Corp.:
Steve Parry
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

May 17, 2016

Grenville Declares May 2016 Dividend

Grenville Declares May 2016 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

– Reduces dividend from 7 cents to 5 cents on an annualized basis –

TORONTO, Ontario, May 17, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of May 2016, representing $0.05 per share on an annualized basis. The dividend is payable on June 15, 2016 to shareholders of record on May 31, 2016. The ex-dividend date is May 27, 2016.

“This step toward achieving a sustainable dividend is commensurate with the original dividend level we implemented last year. The Board’s decision reflects the current challenges faced by the SME market and the impact we expect these conditions to have on the portfolio during the first half of 2016,” said Steve Parry, Chief Executive Officer of Grenville. “To date, we have generated $27.6 million in returns based on $63 million of invested capital which demonstrates the strength of the core holdings. We believe reducing the monthly dividend now is a responsible decision that provides greater flexibility in terms of our financial position as we continue to work with those investee companies that are underperforming.”

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:
Steve Parry
Chief Executive Officer
Tel: (416) 777-0383

April 14, 2016

Grenville Declares April 2016 Dividend and Announces Year End 2015 Financial Results Conference Call

Grenville Declares April 2016 Dividend and Announces Year End 2015 Financial Results Conference Call

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW. 

– Implements IFRS 9 to allow fair value reporting of investments – 

Financial results to be released before markets open on April 27, 2016 –‎

TORONTO, Ontario, April 14, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00583 per common share for the month of April 2016, representing $0.07 per share on an annualized basis. The dividend is payable on May 16, 2016 to shareholders of record on April 29, 2016. The ex-dividend date is April 27, 2016.

 

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

 

Year End 2015 Financial Results Conference Call

Grenville will release its year end 2015 financial results before the markets open on Wednesday, April 27, 2016 rather than the previously announced date of April 18. Grenville will host a conference call at 8:00 a.m. ET that same day, Wednesday, April 27, 2016, to review the results. A question and answer session will follow the corporate update.

 

Early Adoption of IFRS 9

For the Full Year period ended December 31st, 2015, Grenville has elected to early adopt the International Reporting Standard 9 for Financial Instruments (IFRS 9) held by the Company.

 

CONFERENCE CALL DETAILS

DATE:                                           Wednesday, April 27, 2016

TIME:                                            8:00 AM Eastern Time

DIAL IN NUMBER:                      647-788-4922 or 877-291-4570

TAPED REPLAY:                         416-621-4642 or 800-585-8367

REFERENCE NUMBER:              81901363


A recording of the call will be archived on the Company’s website at
www.grenvillesrc.com/investors.

 

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. To date, Grenville has announced cash inflows of $23.4 million from $62.5 million invested in the two years since its inception.

For further information, please contact:
Grenville Strategic Royalty Corp.:

William (Bill) R. Tharp
President and Chief Executive Officer
Tel: (416) 777-0383

February 17, 2016

Grenville Declares February 2016 Dividend

Grenville Declares February 2016 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, February 17, 2016 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00583 per common share for the month of February 2016, representing $0.07 per share on an annualized basis. The dividend is payable on March 15, 2016 to shareholders of record on February 29, 2016. The ex-dividend date is February 25, 2016.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. To date, Grenville has announced cash inflows of $23.4 million from $56.9 million invested in the two years since its inception.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

December 16, 2015

Grenville Declares December 2015 Dividend

Grenville Declares December 2015 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, December 15, 2015 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00583 per common share for the month of December 2015, representing $0.07 per share on an annualized basis. The dividend is payable on January 15, 2016 to shareholders of record on December 31, 2015. The ex-dividend date is December 29, 2015.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. To date, Grenville has announced cash inflows of $23.4 million from $56.9 million invested in the two years since its inception.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

October 15, 2015

Grenville Declares October 2015 Dividend

Grenville Declares October 2015 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

 

Toronto, Ontario, October 15, 2015 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of October 2015, representing $0.05 per share on an annualized basis. The dividend is payable on November 16, 2015 to shareholders of record on October 30, 2015. The ex-dividend date is October 28, 2015.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing small to medium-sized businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

August 18, 2015

Grenville Strategic Royalty Announces 2015 Second Quarter Results

Grenville Strategic Royalty Announces 2015 Second Quarter Results

TORONTO, ONTARIO–(Marketwired – Aug. 18, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three- and six-month periods ended June 30, 2015. Financial references are in Canadian dollars unless otherwise specified.

2015 Second Quarter (Q2 2015) Highlights

  • Revenues of $2,298,542, an increase of 544% from Q2 2014, and a year to date total of $3,909,234
  • Adjusted EBITDA(1) (excluding impairment provisions) of $1,463,700 and a year to date total of $2,586,954
  • Free Cash Flow(1) of $776,655 and a year to date total of $942,269
  • Loss after taxes was $(25,716) and a year to date total of $1,373,267
  • Gross proceeds closed of $13.8 million, through a bought deal equity offering

To view the bar graph accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/1021875_graphs.pdf

Portfolio Highlights

  • Average royalty payment per million invested(1) was $252,661 for the month ended June, 2015
  • Royalty and royalty related investments acquired totaled $7,939,790 for Q2 2015, an increase of 52.1% from Q1 2015, and total aggregate to date of $37,791,518
  • Announced first successful exit, subsequent to the end of the period, with the buyout of its investment in Wmode for proceeds of $2.78 million, resulting in a total return of $3.15 million, representing an IRR of approximately 104% and a 3.15x cash on cash return, from the $1.0 million investment made in November, 2013
  • Provided for an impairment provision of $1,008,405 relating to one portfolio investment

“The portfolio continues to perform well, with Q2 representing our sixth consecutive quarter of record growth since going public,” said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “Our business model continues to fill a gap in the market for established small-to-medium enterprises in search of capital to fund growth. During the quarter we funded four new companies, continuing to diversify the portfolio, and made six follow-on investments into existing portfolio companies, for a total of 10 investments. We also achieved our first successful exit, locking in returns which can be redeployed into new opportunities within our robust pipeline of prospective investments and further support the economics of our dividend. The Wmode exit will have a material, positive impact on our Q3 results, with or without impairments. We believe positive exits, like WMode, will balance and offset the impairment of a portion of investments inevitable in an SME portfolio. This cushion is in addition to that already built into the portfolio allowing us to further protect and enhance the core-return being generated.”

Financial Highlights for Second Quarter 2015

Canadian dollars Three months ended
June 30,
Six months ended
June 30,
2015 2014 2015 2014
Revenues $2,298,542 $357,090 $3,909,234 $504,161
Profit/(Loss) for the period (25,716 ) (224,610 ) 1,373,267 (3,905,856 )
Basic Earnings/(Loss) per share (0.0003 ) (0.0045 ) 0.0173 (0.1147 )
Diluted Earnings/(Loss) per share (0.0003 ) (0.0045 ) 0.0173 (0.1147 )
Adjusted EBITDA(1) 455,295 17,446 1,578,549 10,229
Adjusted EBITDA excluding impairment provision 1,463,700 17,446 2,586,954 10,229
Free cash flow(1) 776,655 (568,867 ) 942,269 96,081
Royalty agreements acquired and new loans in period 7,939,790 5,999,500 13,159,190 8,670,715

Revenues

Revenues were $2,298,542 and $3,909,234 for Q2 2015 and the six-month period ended June 30, 2015 (YTD 2015), respectively, compared with $357,090 and $504,161 for the corresponding periods in 2014. The substantial increase in revenues was due to total aggregate investments increasing by 257% between Q2 2014 and Q2 2015, as the Company continues to scale its portfolio. The most significant component of revenues is royalty payment income, which represented 88% of total revenue in Q2 2015.

Operating Expense

Total operating expenses were $881,775 and $167,159 for Q2 2015 and YTD 2015, respectively, compared to $581,700 and $4,410,017 for the corresponding periods last year. The increase in the quarterly period included a net foreign exchange loss of $219,859, of which $209,645 related to an unrealized foreign exchange loss following the translation of royalty agreements acquired denominated in U.S. dollars and a share-based payment expense of $39,684, compared to a net foreign exchange loss of $130,527 in the same period last year. Operating expenses for Q2 2015, excluding foreign exchange losses, came in at approximately $210,000 per month.

Total expenses in YTD 2015 included a net foreign exchange gain of $1,041,434, of which $1,025,702 related to an unrealized foreign exchange gain following the translation of royalty agreements acquired denominated in U.S. dollars, and a share-based payment expense of $67,643, compared to a net foreign exchange loss of $125,476 in the same period last year. Total operating expenses for the corresponding 2014 period were $4,410,017 and included expenses of $3,636,197 directly attributable to the Company’s reverse takeover (RTO).

Income (loss) After Taxes

Income (loss) after taxes was $(25,716) and $1,373,267 for Q2 2015 and YTD 2015, respectively, compared to $(224,610) and $(3,905,856) for corresponding periods last year. The improvements were due to higher revenues in each of the 2015 periods, as the Company scales its portfolio, as well as the foreign exchange gain in the YTD 2015 period and the RTO expense in 2014.

Income (loss) after taxes for Q2 2015 and YTD 2015 includes the impact of an impairment provision of $1,008,405 related to one investment which as of June 30, 2015 was in default due to non-payment of royalty payments. The Company has elected to recognize a provision against the entire carrying amount of the investment. Management will continue to review the financial position of the investee and the appropriateness of the impairment provision.

Adjusted EBITDA(1)

Adjusted EBITDA was $455,295 and $1,578,549 for Q2 2015 and YTD 2015, respectively, compared to $17,446 and $10,229 for corresponding periods last year. The increases were due to higher revenues driven by the new royalty agreements acquired since the end of June 2014 which were partially offset by the impairment provision of $1,008,405 referenced above.

Free Cash Flow(1)

Free cash flow was $776,655 and $942,269 for Q2 2015 and YTD 2015, respectively, compared to $(568,867) and $96,081 for the corresponding periods last year. Free cash flow can be impacted by short-term timing differences in the receipt of royalty payments and tax recoveries.

Dividend

Grenville declared an August dividend, payable on September 15, 2015, to holders of record on August 31, 2015, in the amount of $0.00416 per share, which represents $0.05 on an annualized basis. The aggregate dividend payments during Q2 2015 were $1,077,005. Subsequent to the end of the period, the Company declared aggregate dividends of $820,484 for the months of July and August. All dividend payments have come, or will come, from available free cash flow of the Company.

Assets

As at
June 30, 2015
As at
December 31, 2014
Cash and cash equivalents $20,383,288 $9,748,841
Royalty agreements acquired and loan portfolio 37,705,405 24,283,758
Total assets 60,227,743 35,194,085

Average Royalty Payment per Million Invested(1)

The average royalty payment per million invested(1) for the month of June 2015 was $252,661, which is in line with the Company’s target of $250,000 per month.

To view the bar graph accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/1021875_graphs.pdf

Rolling Three-Month Average Investment per Month(1)

As of July 31, 2015, the rolling three-month average investment per month(1) was $1,998,937.

To view the bar graph accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/1021875_graphs.pdf

Rolling Three-Month Average Investment per Transaction(1)

As of July 31, 2015, the rolling three-month average investment per transaction(1) was $728,949.

To view the bar graph accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/1021875_graphs.pdf

Outlook

As the Company continues to scale its business, it is building a diversified portfolio consisting of cyclical, neutral and defensive asset classes. The strength and diversity of this portfolio has also been designed to mitigate a level of portfolio impairment that would be expected in small to medium enterprise (SME) investments. The Company has invested more than $37 million of capital across 40 investments in 25 portfolio companies. Management’s target in building a balanced portfolio is based on the pricing of risk in the SME market a rate of $250,000 of average royalty per million invested(1). The portfolio has reached a scale at which, as designed, it is generating stable income and Adjusted EBITDA(1), allowing the Company to declare dividends.

Grenville’s royalty agreements with its portfolio companies provided revenue to the Company of approximately $2.3 million for the three-month period ended June 30, 2015. As of August 18, 2015, management estimates July 2015 revenues will be approximately $0.79 million, net of the $1.68 million in revenue as a result of the gain (over the carrying amount of the investment) from the exit of the Company’s Wmode investment. Operating expenses for Q2 2015, excluding any foreign exchange effects, came in at approximately $0.2 million per month, and are estimated to run in the range of $2.2 million and $2.8 million on an annualized basis in Q3 2015.

Grenville’s unique capital offering continues to fill an expansive niche in North American small to medium enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, management is confident the Company will be able to add new portfolio companies to its existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville may also expand the range of financial instruments and solutions employed where the use of these additional instruments can enhance or defend portfolio value, including secured and unsecured short-term debt instruments, modifications to its royalty payment structure, the granting of security on existing investments and equity-based instruments. At the present time, the use of such modifications and additions does not form a material percentage of its investments, at $1.2 million, and is included in the Company’s non IFRS measurement “Average royalty payment per million(1)“.

Grenville’s financial statements and management’s discussion and analysis for the three- and six-month periods ended June 30, 2015 will be filed on SEDAR at www.sedar.com and will be available on Grenville’s website at www.grenvillesrc.com.

(1) Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details

Grenville will host a conference call to discuss these results at 10:00 a.m. Eastern Time, Wednesday, August 19, 2015. William Tharp, CEO, Donnacha Rahill, CFO and Steven Parry, Executive Chairman, will co-chair the call. Participants should call (647) 788-4922 or (877) 291-4570 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 78044156. The replay recording will be available until 11:59 p.m. Eastern Time, August 26, 2015.

An audio recording of the conference call will be also available on the investors’ page of Grenville’s website at grenvillesrc.com.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”.
The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. 
An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Caution Regarding Non-IFRS Financial Measures – Grenville uses certain measures in this press release which do not have a standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) and are unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures, including adjusted EBITDA, average royalty payment per million investment, rolling three month average investment per transaction and rolling three month average investment per month have been presented in this press release in order to provide shareholders and potential investors with additional information regarding Grenville, but should not be considered in isolation or as a substitute for, or more meaningful than, measures prepared in accordance with IFRS, such as net income (loss) or cash flow from operating activities. Please refer to the Company’s Management’s Discussion and Analysis as at and for the three and six months ended June 30, 2015 for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION

  • Grenville Strategic Royalty Corporation:
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
August 17, 2015

Grenville Declares August 2015 Dividend

Grenville Declares August 2015 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, August 17, 2015 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of August 2015, representing $0.05 per share on an annualized basis. The dividend is payable on September 15, 2015 to shareholders of record on August 31, 2015. The ex-dividend date is August 27, 2015.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

July 14, 2015

Grenville Declares July 2015 Dividend and Announces Option Grant

Grenville Declares July 2015 Dividend and Announces Option Grant

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

TORONTO, ONTARIO–(Marketwired – July 13, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of July 2015, representing $0.05 per share on an annualized basis. The dividend is payable on August 14, 2015 to shareholders of record on July 31, 2015. The ex-dividend date is July 29, 2015.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

The Corporation also announces that it has granted options to acquire an aggregate of 1,500,000 common shares of Grenville to Annie Theriault, who recently joined Grenville as a managing director. The options are exercisable at a price of CDN$0.87 per common share and will vest annually in equal tranches if the Corporation achieves cumulative free cash (as that term is defined in the Corporation’s management discussion and analysis) of at least $5 million, $10 million, $15 million and $20 million by the first, second, third and fourth anniversaries of the grant date, respectively. The options have a term of 5 years and are subject in all respects to the terms of Grenville’s stock option plan.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

June 15, 2015

Grenville Declares June 2015 Dividend

Grenville Declares June 2015 Dividend

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Toronto, Ontario, June 15, 2015 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of June 2015, representing $0.05 per share on an annualized basis. The dividend is payable on July 15, 2015 to shareholders of record on June 30, 2015. The ex-dividend date is June 26, 2015.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.

The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

May 13, 2015

Grenville Strategic Royalty Announces 2015 First Quarter Results and Declares May 2015 Dividend

Grenville Strategic Royalty Announces 2015 First Quarter Results and Declares May 2015 Dividend

TORONTO, ONTARIO–(Marketwired – May 13, 2015) – Grenville Strategic Royalty Corporation (TSX VENTURE:GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three-month period ended March 31, 2015. Financial references are in Canadian dollars unless otherwise specified.

First Quarter 2015 Highlights

  • Revenues of $1,610,690 for the three-month ended March 31, 2015 (Q1 2015)
  • Adjusted EBITDA(1) of $1,125,132
  • Free Cash Flow(1) of $165,534
  • Income after taxes was $1,398,981
  • Royalty agreements acquired were $5.2 million for Q1 2015, bringing the aggregate value of acquired royalties since inception to the end of Q1 2015 to $29.9 million
  • Average royalty payment per million invested(1) was $262,724 for the month of March, 2015
  • Raised gross proceeds of $25.3 million comprised of $11.5 million closed on February 26, 2015 and $13.8 million, subsequent to end of the period

“Our growing portfolio performed well in the quarter, generating record quarterly revenue and Adjusted EBITDA and material improvements in other key operating metrics such as royalty agreements acquired and average royalty payment per million invested,” said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “The portfolio is delivering on its objectives and our unique capital offering continues to fill an important niche in the North American, small-to-medium enterprise, growth-capital marketplace. Our pipeline of prospective investments remains robust, positioning us well for continued growth and diversification in 2015.”

Financial Highlights for the First Quarter 2015

Canadian dollars Three-month period
ended March 31, 2015
  Three-month period
ended March 31, 2014
 
Revenues 1,610,690   147,071  
Profit (loss) after income taxes 1,398,981   (3,681,246 )
Basic earnings (loss) per share 0.0208   (0.1280 )
Diluted earnings (loss) per share 0.0185   (0.1280 )
Adjusted EBITDA/EBITDA (loss)(1) 1,125,132   (7,217 )
Free Cash Flow(1) 165,534   664,948  
Royalty agreements acquired in the period 5,219,400   2,671,215  

Revenues

Revenues were $1,610,690 for Q1 2015, compared with $147,071 for Q1 2014. The substantial increase in revenues was due to total aggregate investments increasing by 552% between Q1 2014 and Q1 2015, as the Company continues to scale its portfolio. The most significant component of revenues is royalty payment income, which represented 97.4% of total revenue in Q1 2015.

Operating Expense

Total operating expenses were $(714,616) for Q1 2015 and included a net foreign exchange gain of $1,261,292, of which $1,235,347 related to an unrealized foreign exchange gain following the translation of royalty agreements acquired denominated in U.S. dollars and a share-based payment expense of $27,959. Total operating expenses for Q1 2014 were $3,828,317 and included expenses of $3,636,197 directly attributable to the Company’s reverse takeover completed in Q1 2014 (RTO). Operating expenses for Q1 2015, excluding foreign exchange gains, were approximately $185,000 per month.

Income (loss) After Taxes

Income (loss) after taxes was $1,398,981 for Q1 2015, compared to a (loss) after taxes of $(3,681,246) for Q1 2014. The increase over the comparable period was due to higher revenues, as well as the foreign exchange gain of $1,261,292 in Q1 2015 and the total RTO related costs of $3,636,197 that were incurred in Q1 2014.

Adjusted EBITDA (loss) (1)

Adjusted EBITDA(1) was $1,125,132 for Q1 2015, compared to an Adjusted EBITDA loss of $(7,217) for Q1 2014. The increase in Adjusted EBITDA(1) since 2014 was primarily due to higher revenues driven by new royalty agreements acquired since the end of March 2014.

Free Cash Flow(1)

Free cash flow(1) was $165,534 for Q1 2015, compared to $664,948 for the three-month period ended March 31, 2014. The primary decrease is due to timing differences in tax recoveries and receivables during the period.

Dividend

Starting on March 15, 2015 the Company commenced the payment of a monthly dividend of $0.00416 per share. The amounts paid in March and April 2015 were $332,877 and $334,114, respectively. The expected dividend to be paid on May 15, 2015 is $334,673. All dividend payments were made from the Company’s available free cash flow(1).

Assets

  As at
March 31,
2015
As at
December 31,
2014
Cash and cash equivalents $ 15,652,746 $ 9,748,841
Royalty agreements acquired and loan portfolio   30,727,914   24,283,758
Total assets   47,949,517   35,194,085

Average Royalty Payment per Million Invested(1)

The average royalty payment per million(1) invested for the month of March 2015 was $262,724, which exceeded the Company’s target of $250,000 per month.

To view the bar graph accompanying this press release, please visit the following link: 
http://media3.marketwire.com/docs/grc0513graph1.jpg.

Rolling Three-Month Average Investment per Month(1) 

As of March 31, 2015, the rolling three-month average investment per month(1) was $2,659,800.

To view the bar graph accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/grc0513graph2.jpg.

Rolling Three-Month Average Investment per Transaction(1)

As of March 31, 2015, the rolling three-month average investment per transaction(1) was $1,045,489.

To view the bar graph accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/grc0513graph3.jpg.

Declaration of May Dividend

The board of directors of the Company has declared a dividend of $0.00416 per common share for the month of May 2015, representing $0.05 per share on an annualized basis. The dividend is payable on June 15, 2015 to shareholders of record on May 29, 2015. The ex-dividend date is May 27, 2015.

This dividend is designated by the Company to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.

The declaration and payment of dividends is at the discretion of the board of directors of the Company and any future declaration of dividends will depend on the Company’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Company.

Outlook

As the Company continues to scale its business, it is building a diversified portfolio consisting of cyclical, neutral and defensive asset classes. The strength and diversity of this portfolio has also been designed to mitigate a level of portfolio impairment that would be expected in small to medium enterprise (SME) investments. The Company has invested more than $29 million of capital across 24 investments in 19 portfolio companies. Management’s target in building a balanced portfolio is based on the pricing of risk in the SME market a rate of $250,000 average royalty payment per million(1) invested. The portfolio has reached a scale at which, as designed, it is generating stable income and Adjusted EBITDA(1), allowing the Company to declare dividends.

Grenville’s royalty agreements with its portfolio companies provided revenue to the Company of approximately $1.6 million for the three-month period ended March 31, 2015. As at the date of this release, management estimates April 2015 revenues will be approximately $0.6 million, reflecting the existing portfolio and new investments added to date. Operating expenses for Q1 2015, excluding any foreign exchange effects, were approximately $0.2 million per month, and are estimated to run in the range of $1.9 million and $2.4 million on an annualized basis in Q2 2015.

Grenville’s unique capital offering continues to fill an expansive niche in North American small to medium enterprise, growth-capital markets. With continued access to funding accretive to shareholder value, we are confident we will be able to add new portfolio companies to the Company’s existing portfolio holdings. Each new portfolio company added will further diversify and strengthen Grenville’s existing portfolio balance. Management also believes that the revenue contribution per portfolio-company added will be priced at roughly the same rate as existing companies within the portfolio.

Grenville’s financial statements and management’s discussion and analysis for the three months ended March 31, 2015 will be filed on SEDAR at www.sedar.com and will be available on Grenville’s website at www.grenvillesrc.com.

(1) Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Conference Call Details

Grenville will host a conference call to discuss these results at 8:00 a.m. Eastern Time today, Wednesday, May 13, 2015. William Tharp, CEO, Donnacha Rahill, CFO and Steven Parry, Executive Chairman, will co-chair the call. Participants should call (647) 788-4922 or (877) 291-4570 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 37098416. The replay recording will be available until 11:59 p.m. Eastern Time, May 20, 2015.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”.
The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. 
An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Caution Regarding Non-IFRS Financial Measures – Grenville uses certain measures in this press release which do not have a standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) and are unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures, including adjusted EBITDA, average royalty payment per million investment, rolling three month average investment per transaction and rolling three month average investment per month have been presented in this press release in order to provide shareholders and potential investors with additional information regarding Grenville, but should not be considered in isolation or as a substitute for, or more meaningful than, measures prepared in accordance with IFRS, such as net income (loss) or cash flow from operating activities. Please refer to the Company’s Management’s Discussion and Analysis as at and for the three months ended March 31, 2015 for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  • Grenville Strategic Royalty Corp.
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
    www.grenvillesrc.com
March 11, 2015

Grenville Declares March 2015 Dividend

Grenville Declares March 2015 Dividend

TORONTO, ONTARIO–(Marketwired – March 11, 2015) –

NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Corporation”) announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of March 2015, representing $0.05 per share on an annualized basis. The dividend is payable on April 15, 2015 to shareholders of record on March 31, 2015. The ex-dividend date is March 27, 2015.

This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.

The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  •  

    Grenville Strategic Royalty Corp.
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
February 27, 2015

Grenville Announces Completion of Bought Deal Offering and exercise of Over-Allotment Option

Grenville Announces Completion of Bought Deal Offering and exercise of Over-Allotment Option

TORONTO, ONTARIO–(Marketwired – Feb. 26, 2015) –

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Company”) is pleased to announce that it has closed its previously announced offering (the “Offering”) of 19,828,300 common shares of the Company (the “Issued Shares”) at a price of $0.58 per Issued Share for aggregate gross proceeds of $11,500,414. The Offering was completed on a “bought deal” basis with a syndicate of underwriters led by National Bank Financial Inc. (collectively, the “Underwriters”). The Issued Shares include 2,586,300 common shares sold by the Company pursuant to the over-allotment option granted by the Company to the Underwriters, which was exercised in full.

As consideration for their services in connection with the Offering, the Company has paid the Underwriters a cash commission equal to 6% of the gross proceeds of the Offering.

As previously announced, the Company intends to use the net proceeds from the Offering for future purchases of revenue royalties in the Company’s target markets.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can be complementary to other financing alternatives or be simple stand-alone capital. Capital can be used in a variety of ways: from working capital needs, to funding acquisitions, buying out minority partners, or just adding a financing alternative to the range of existing capital solutions. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks 
relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  •  

    Grenville Strategic Royalty Corp.
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
February 9, 2015

Grenville Announces $10.0 Million Bought Deal Financing

Grenville Announces $10.0 Million Bought Deal Financing

TORONTO, ONTARIO–(Marketwired – Feb. 9, 2015) –

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a “bought deal” basis, subject to regulatory approval, 17,242,000 common shares of the Company (the “Common Shares”) at a price of $0.58 per Common Share for gross proceeds of $10,000,360 (the “Offering”). The Company has granted to the Underwriters an over-allotment option to purchase up to an additional 15% of the Common Shares at the same price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering, to cover over-allotments.

Grenville intends to use the net proceeds from the Offering for future purchases of revenue royalties in the Company’s target markets and for general corporate purposes.

The Company expects to file a preliminary short form prospectus relating to the Offering on February 12, 2015. Closing of the Offering is expected to occur on or about February 26, 2015. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange, and other securities regulatory authorities as applicable.

As previously announced, the Company will pay cash dividends at an annualized rate of $0.05 per Common Share, subject to review and approval by the board of directors of the Corporation on a monthly basis. The first dividend for which purchasers of the Common Shares contemplated herein will be entitled to receive is the $0.00416 per Common Share dividend expected to be paid on or about March 16, 2015 to holders of record at the close of business on February 27, 2015.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can be complementary to other financing alternatives or be simple stand-alone capital. Capital can be used in a variety of ways: from working capital needs, to funding acquisitions, buying out minority partners, or just adding a financing alternative to the range of existing capital solutions. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements.
An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated April 21, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383


February 6, 2015

Grenville Strategic Royalty Corp. Announces 2014 Year End Results and Declaration of First Dividend

Grenville Strategic Royalty Corp. Announces 2014 Year End Results and Declaration of First Dividend

 

TORONTO, Ontario, February 6th, 2015 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three-month and twelve-month periods ended December 31, 2014. Financial references are in Canadian dollars unless otherwise specified.

 

Fourth Quarter 2014 Highlights

 

·       Revenues of $1,535,246 and $2,944,791 for the three-months ended December 31, 2014 (Q4 2014) and twelve-month period ended December 31, 2014 (FY 2014), respectively

·       Income (loss) after taxes was $(80,461) in Q4 2014 and $(3,457,760) in FY 2014, including non-recurring costs of $3,636,197 directly attributable to the Company’s going public transaction

·       Adjusted EBITDA1 (loss) of $(61,451) in Q4 2014 and $490,357 in FY 2014

·       Excluding the writedown of $1,000,000, Adjusted EBITDA was $938,549 in Q4 2014 and $1,490,537 in FY 2014

·       Free Cash Flow1 of $1,217,417 in Q4 2014 and $936,690 in FY 2014

·       Royalty agreements acquired were $4.5 million for Q4 2014, bringing the aggregate value of acquired royalties since inception to the end of Q4 2014 to $24.6 million

·       Average royalty payment per million invested1 was $247,118 for the month of December

 

Financial Highlights for the Fourth Quarter and Fiscal Year 2014

Canadian dollars

Three-month period ended December 31, 2014

Twelve-month period ended December 31, 2014

Revenues

1,535,246

2,944,791

Loss after income taxes

(80,461)

(3,457,760)

Basic and diluted earnings (loss) per share

(0.0014)

(0.0700)

Adjusted EBITDA1 (loss)

(61,451)

490,357

Adjusted EBITDA1, excluding writedown

938,549

1,490,537

Free Cash Flow1

1,217,407

936,690

Royalty agreements acquired in the period

4,511,400

22,722,168

 

“The strength of our diversified and growing portfolio of royalty investments generated strong results with increased revenue and free cash flow”, said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “The stability and sustainability of the portfolio now enables us to return capital to shareholders with the declaration of our first dividend. Our underlying fundamentals remain strong as evidenced by our average royalty payment per million invested1 and a robust pipeline of prospective investments. As we continue to scale the business, we are committed to providing shareholders access to a growing, diversified portfolio of SME opportunities providing regular, predictable and growing returns”.

Revenues

Revenues were $1,535,246 and $2,944,791 for Q4 2014 and FY 2014, respectively, compared to $51,952 for the period from July 29 to December 31, 2013 (2013). The most significant component of revenues is royalty payment income, which represents 89.4% and 90.2% of total revenue Q4 2014 and FY 2014, respectively. The increase in revenues was due to $22,722,168 in new royalty agreements acquired during FY 2014 as the Company scaled its portfolio, as well as the impact of a full year of revenues from investments made in FY 2013.

Operating Expense

Total operating expenses were $218,916 and $4,660,620 for Q4 2014 and FY 2014, respectively, compared to $160,808 in 2013. Total operating expenses in Q4 2014 included a net foreign exchange gain of $445,963, $444,643 of which related to an unrealized foreign exchange gain following the translation of royalty agreements denominated in US dollars; a share-based payment expense of $27,959; and $156,799 for withholding tax paid that was expensed rather than treated as recoverable. Net of these expenses, operating expenses for Q4 2014 were $480,121. Total operating expenses during FY 2014 included $3,636,197 directly attributable to the Company’s going public transaction; $693,789 of unrealized foreign exchange gains; $214,046 in share-based payment expense and $156,799 for withholding tax paid that was expensed rather than treated as recoverable. Net of these expenses, operating expenses for FY 2014 were $1,347,367, or approximately $112,000 per month, which is in line with management’s expectations.

Income (loss) After Taxes

Income (loss) after taxes was $(80,461) and $(3,457,760) for Q4 2014 and FY 2014, respectively, compared to $(108,856) for 2013. The Company recorded a $1,000,000 impairment provision during Q4 2014, previously announced on November 10, 2014, in relation to a single investment. While management believes a portion of the investment may be recovered, the Company has made a full impairment provision in the period against the book value of the investment. The Company is currently pursuing enforcement actions against the investee company. The impairment was partially offset by the foreign exchange gain of $445,963 referenced above.

Adjusted EBITDA

Adjusted EBITDA1 (loss) was $(61,451) and $490,357 for Q4 2014 and FY 2014, respectively, compared to $(23,844) for 2013. Adjusted EBITDA1 margin was (5.244)% for Q4 2014, reflecting the impairment provision referenced above. Excluding the writedown of $1,000,000, Adjusted EBITDA was $938,549 in Q4 2014 and $1,490,537 in FY 2014.

Free Cash Flow

Free cash flow1 was $1,217,417 and $936,690 for Q4 2014 and FY 2014, respectively, compared to negative free cash flow1 of $548,988 in 2013. The Company received a HST refund in the amount of $1,038,124 in November 2014.

Assets

  As at December 31, 2014 As at December 31, 2013
Cash and cash equivalents $9,748,841 $ 593,417
Royalty agreements acquired and loan portfolio 24,283,758 1,890,169
Total assets 35,194,085 3,176,891

Average Royalty Payment per Million Invested1

The average royalty payment per million invested1 for the month of December 2014 was $247,118, compared to the Company’s target of $250,000 for the month. Management is focused on building a portfolio with expanding diversification, underlying revenue growth greater than portfolio write-downs combined with a healthy percentage of minimum monthly payments, currently at 85% of the portfolio.


To view the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/991138_graph1.jpg

Rolling Three Month Average Investment per Month1

As of December 31, 2014, the rolling three month average investment per month1 was $1,504,000.

To view the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/991138_graph2.jpg

Rolling Three Month Average Investment per Transaction1

As of December 31, 2014, the rolling three month average investment per transaction1 was $920,000.

To view the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/991138_graph3.jpg

Declaration of Dividend

The Company is also pleased to announce that its board of directors has approved a cash dividend of $0.00416 per share for the period of February 1, 2015 to February 28, 2015, which is equal to $0.05 per share on an annualized basis. The dividend will be paid on March 16, 2015 to shareholders of record at the close of business on February 27, 2015.

The declaration and payment of dividends is at the discretion of the board of directors of the Company and any future declaration of dividends will depend on the Company’s financial results, cash requirements, future prospects and other factors deemed relevant by the board.

Outlook

As the Company continues to scale its business, it is building a diversified portfolio consisting of cyclical, neutral and defensive asset classes. The strength and diversity of this portfolio has also been designed to mitigate a level of portfolio impairment that would be expected in small to medium enterprise (SME) investments. The Company has invested more than $24 million of capital across 24 investments in 19 portfolio companies. Management’s target in building a balanced portfolio is based on the pricing of risk in the SME market a rate of $250,000 of annual revenue per million of invested capital1. The portfolio has reached a scale at which, as designed, it is generating stable income and Adjusted EBITDA1, which has enabled the Company to declare its first dividend.

Grenville continues to possess a strong pipeline of investment prospects. During 2014, management reviewed approximately 465 prospective transactions, proceeded to the due diligence stage on approximately 260 transactions, issued 68 term sheets and closed 16 new investments and 4 follow-on investments. With the volatility of the broader markets experienced during the fourth quarter, management deliberately slowed its rate of investment, as evidenced by the decrease in the rolling three month average investment per month. Management believes this volatility in the markets has the potential to provide the Company with enhanced deal flow, as small and medium sized enterprises often face difficulty in accessing growth capital in challenging equity markets.

Grenville’s financial statements and management’s discussion and analysis for the twelve-months ended December 31, 2014 will be filed on SEDAR at www.sedar.com and will be available on Grenville’s website at www.grenvillesrc.com.

1 Please refer to the Non-IFRS Measures section below.

 

 Non-IFRS Measures

For the definitions of Non-IFRS measures, please refer to the Company’s management’s discussion and analysis. 
The following tables reconcile Adjusted EBITDA1 and Free Cash Flow1 to IFRS measures reported in the audited consolidated financial statements;

  Three months ended December 31, 2014   Year ended December 31, 2014  
Loss before income taxes $ (111,568 ) $ (3,513,887 )
Depreciation 2,384   3,721  
Financing expense 427,898   798,058  
EBITDA/EBITDA (Loss) 318,714   (2,712,108 )
Adjustments:        
Unrealized foreign exchange gain on carrying amount of Royalty Agreements Acquired (444,643 ) (684,297 )
Unrealized adjustment to carrying amount of royalty agreements as a result of revising estimated cash flows (120,280 ) (120,280 )
Share-based payment expense 27,959   214,046  
Going public transaction expense   2,651,316  
Severance payment   400,000  
Legal and professional expenses directly related to the going public transaction   584,881  
Withholding tax expensed 156,799   156,799  
Adjusted EBITDA/EBITDA (Loss) $ (61,451 ) $ 490,357  
         
  Three months ended December 31, 2014   Year ended December 31, 2014  
Net cash used in operating activities $ (2,914,423 ) $ (22,028,331 )
Royalty agreements acquired 4,511,400   22,722,168  
Interest expense (351,144 ) (661,644 )
Income tax payable- movement in period (28,426 ) (80,384 )
Going public transaction expenses not paid from Free cash flow – see above   984,881  
Free Cash Flow $ 1,217,407   $ 936,690  

The calculation of the average royalty payment per million invested, the rolling three month average investment per month and the rolling three month average transaction per transaction are:

To view the tables associated with this release, please visit the following link:

http://media3.marketwire.com/docs/991138_table.pdf

Conference Call Details

Grenville will host a conference call to discuss these results at 4:30 p.m. Eastern Time today, Friday, February 6, 2015. William Tharp, CEO, Donnacha Rahill, CFO and Steven Parry, Executive Chairman, will co-chair the call. Participants should call (647) 788-4919 or (877) 291-4570 and ask an operator for the Grenville earnings call. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 75102239. The replay recording will be available until 11:59 p.m. Eastern Time, February 13, 2015.

An audio recording of the conference call will be also available on the “investors” page of Grenville’s website at grenvillesrc.com.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can be complementary to other financing alternatives or be simple stand-alone capital. Capital can be used in a variety of ways: from working capital needs, to funding acquisitions, buying out minority partners, or just adding a financing alternative to the range of existing capital solutions. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”.

The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchasers from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated April 21, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statements that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Caution Regarding Non-IFRS Financial Measures – Grenville uses certain measures in this press release which do not have a standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) and are unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures, including adjusted EBITDA, average royalty payment per million investment, rolling three month average investment per transaction and rolling three month average investment per month have been presented in this press release in order to provide shareholders and potential investors with additional information regarding Grenville, but should not be considered in isolation or as a substitute for, or more meaningful than, measures prepared in accordance with IFRS, such as net income (loss) or cash flow from operating activities. Please refer to the Company’s Management’s Discussion and Analysis as at and for the three months ended September 30, 2014 for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  •  

    Grenville Strategic Royalty Corporation
    William (Bill) R. Tharp
    President and Chief Executive Officer
    Tel: (416) 777-0383

     

 
November 10, 2014

Grenville Strategic Royalty Announces Write Down on Individual Investment

Grenville Strategic Royalty Announces Write Down on Individual Investment

Toronto, Ontario, November 10, 2014 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced that it will record a $1 million non-recurring write down during the three-month period ending December 31, 2014 due to management’s view on its ability to collect the principal on one of the investee companies in its portfolio. The investment represents less than 3 percent of Grenville’s total asset base. The charge is within the range of the Company’s expected investment outcomes and will not materially impact future cash flows.

The Company decided to record the charge immediately after new information on one of its investee companies came to light.  

“While the outcome of this investment is certainly unfortunate, our strategy to build a diversified portfolio of royalty investments is specifically designed to mitigate the risk of individual investment losses,” said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “We made a proactive decision to take a 100 percent charge against this individual investment as we believe there is little chance to collect the principal. Even at this relatively early stage of our evolution, the portfolio is constructed to withstand events of this nature. We are generating positive net cash flows today and remain confident in the outlook for the business”.  

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can be complementary to other financing alternatives or be simple stand-alone capital. Capital can be used in a variety of ways: from working capital needs, to funding acquisitions, buying out minority partners, or just adding a financing alternative to the range of existing capital solutions. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control.  Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”.  The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements.  An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. 

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital  that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar.  In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated April 21, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

November 4, 2014

Grenville Strategic Royalty Announces 2014 Third Quarter Results

Grenville Strategic Royalty Announces 2014 Third Quarter Results

Board approves Outlook and Implementation of Dividend Strategy

Toronto, Ontario, November 3, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three and nine months ended September 30, 2014. Financial references are in Canadian dollars unless otherwise specified.

Third Quarter 2014 Highlights
  • Revenues of $905,000 for the three months ended September 30, 2014 (Q3 2014)
  • Net Income of $529,000
  • Adjusted EBITDA1 of $542,000
  • Royalty agreements acquired were $9.5 million for Q3 2014, bringing the aggregate value of acquired royalties since inception to the end of Q3 2014 to $20.1 million
  • Average royalty payment per million invested1 was $243,000 for the month of September
  • Acquired additional investments in royalty agreements of $4 million subsequent to the end of the period, bring royalty agreements acquired since inception to $24.1 million

“Our growing portfolio of royalty investments generated strong revenue, Net Income and Adjusted EBITDA1 during the quarter.” said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “This is a milestone quarter for the Company, with material improvements to the diversification of the portfolio and corresponding growth in both investment pace and individual deal size. As a result of these positive results, rapidly increasing revenues and most importantly, material Adjusted EBITDA1, along with strong future growth prospects, the Company is now focused on delivering its next significant milestone, the design and implementation of a plan to return capital to shareholders in the form of a regular dividend. With a solid foundation set in place, the Company will continue to build on its successes while managing the business to achieve our target average royalty payment per million invested1 of $250,000.”

Financial Highlights for the Third Quarter of 2014
  Three months ended
September 30, 2014
Nine months ended
September 30, 2014
Revenues $ 905,384 $ 1,409,546
Profit (Loss) after income,taxes 528,558 (3,377,297)
Basic and diluted earnings (loss),per share 0.0089 (0.0734)
Adjusted EBITDA 1 541,579 551,810
Weighted basic average number,of shares outstanding 59,302,462 45,996,104
Royalty agreements acquired,in period 9,540,053 18,210,768
Revenues

Revenues were $905,000 and $1,410,000 for the three and nine months ended September 30, 2014, respectively. Royalty payment income represented 93% and 91% of total revenue during the respective periods. The improvement, compared to revenue of $52,000 and royalty payment income of 53% of total revenue for the period from July 29, 2013 to December 31, 2013, is primarily due to additional royalty agreements acquired during 2014 as the Company scales its portfolio.

Operating Expense

Total operating expenses were $32,000 and $4,442,000 for the three and nine months ended September 30, 2014, respectively. Operating expenses for the three month period were impacted by an unrealized foreign exchange gain of $361,000 resulting from the translation of royalty agreements denominated in US dollars, and a share-based payment expense of $28,000. Net of foreign exchange gains and share based expenses, operating expenses were $377,000 for the three month period, or approximately $126,000 per month, which is in line with management’s expectations. Operating expenses for the nine-month period included $3,636,000 in expenses related to the reverse take-over, completed in February 2014 (the “RTO”), $248,000 in unrealized foreign exchange gain and $186,000 in share-based payment expense. Net of these three items, operating expenses were $867,000 for the period. Operating expenses for the period from July 29, 2013 to December 31, 2013 were $161,000.

Profit After Income Taxes

Profit after income taxes was $528,559 (or $0.01 per basic and diluted share) for the three months ended September 30, 2014 compared to a loss of $108,856 (($0.01) per basic and diluted share) for the period July 29, 2013 to December 31, 2013. Profit in the quarter was attributable to the revenues generated from the growing portfolio of investments, as well $373,302 in unrealized foreign exchange gain and the $27,959 share-based payment expense mentioned above.

Adjusted EBITDA1

Adjusted EBITDA was $541,579 and $551,810 for the three months and nine months ended September 30, 2014, respectively, compared to a loss of $23,844 for the period from July 29, 2013 to December 31, 2013. Adjusted EBITDA margin was 60% for the quarter.

Assets
  As at,September
30, 2014
As at,December 31, 2013
Cash and cash equivalents $ 13,392,405 $ 593,417
Royalty agreements acquired,and loan portfolio 20,216,722 1,890,169
Total assets 35,262,794 3,176,891
Average Royalty Payment Per Million Invested1

The average royalty payment per million invested for the month of September 2014 was $243,451 versus the Company’s target of $250,000 for the month. Management believes that as the Company’s portfolio achieves a greater level of diversification, monthly results will become more closely aligned with this target. Management expects the average royalty to increase in the latter quarter of the year as seasonally adjusted revenue are generally higher than in the earlier part of the year for most portfolio companies. Current results are consistent with management’s expectations at this stage of the financial year.

news35_chart1.png

Rolling Three Month Average Investment Per Month1

As of October 31, 2014, the rolling three month average investment per month was $3,805,000.

news35_chart2.png

Rolling Three Month Average Investment Per Transaction1

As of October 31, 2014, the rolling three month average investment per transaction was $1,680,000.

news35_chart3.png

(1) Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS)

Outlook

Grenville continues to experience strong deal flow through its robust network. Current volatility in the broader markets has the potential to provide the Company with enhanced deal flow, as small and medium sized enterprises often face difficulty in accessing growth capital in challenging equity markets.

Since its inception, Grenville has built a diversified portfolio of approximately $24 million of invested capital across 22 investments in 18 portfolio companies. Management’s target in building a balanced portfolio is to achieve a rate of $250,000 of annual revenue per $1,000,000 of invested capital. Based on the existing investments, the portfolio has reached a scale at which it is generating stable income and Adjusted EBITDA, as designed. Additionally, as provided in the Rolling Three Month Average Investment Per Month and Per Transaction summaries above, management believes we can maintain, or exceed, the pace and rate of capital deployment achieved to date.

Dividend Strategy

Based on this performance, the Company is now focused on the design and implementation of a plan to return capital to shareholders in the form of a regular dividend. The quantum and timing of such dividend will be determined by the Board following a review of the Company’s cash flow, earnings, working capital requirements, financial position, future prospects and other factors deemed relevant by the Board. The Board believes that the transition to a growth-and-dividend company is supported by the underlying strength of the Company’s business and clearly demonstrates the power of the Company’s royalty-based business model.

Grenville’s scalable business model provides the capability to acquire an expanding portfolio of income-producing royalties. This expansion, combined with the Company’s modest corporate cost structure, generates strong free cash flow available for distribution, which the Company believes should enable it to fund a meaningful dividend strategy.

(1) Please refer to the Company’s management’s discussion and analysis for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS)

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can be complementary to other financing alternatives or be simple stand-alone capital. Capital can be used in a variety of ways: from working capital needs, to funding acquisitions, buying out minority partners, or just adding a financing alternative to the range of existing capital solutions. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For further information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

 

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; and financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; and that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated April 21, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Caution Regarding Non-IFRS Financial Measures – Grenville uses certain measures in this press release which do not have a standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) and are unlikely to be comparable to similar measures presented by other issuers. These non-IFRS measures, including adjusted EBITDA, average royalty payment per million investment, rolling three month average investment per transaction and rolling three month average investment per month have been presented in this press release in order to provide shareholders and potential investors with additional information regarding Grenville, but should not be considered in isolation or as a substitute for, or more meaningful than, measures prepared in accordance with IFRS, such as net income (loss) or cash flow from operating activities. Please refer to the Company’s Management’s Discussion and Analysis as at and for the three months ended September 30, 2014 for definitions and reconciliations of these non-IFRS measures to measures prescribed by IFRS.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

July 10, 2014

Grenville Files Final Short-From Prospectus in Connection with $15 Million Offering of Convertible Debentures

Grenville Files Final Short-From Prospectus in Connection with $15 Million Offering of Convertible Debentures

Toronto, Ontario, July 10, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) is pleased to announce that it has closed its previously announced offering of $15,000,000 aggregate principal amount of convertible unsecured subordinated debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Offering”). The Offering was completed on a “bought deal” basis with a syndicate of underwriters led by National Bank Financial Inc. (collectively, the “Underwriters”). The Underwriters were granted an over-allotment option to purchase up to an additional $2,250,000 aggregate principal amount of Debentures at the same price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering, to cover over-allotments and for market stabilization purposes.

The Debentures will bear interest from the date of issue at 8% per annum, payable semi-annually in arrears on June 30 and December 31 in each year commencing December 31, 2014. The Debentures will have a maturity date of December 31, 2019 (the “Maturity Date”).

The Debentures will be convertible at the holder’s option at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date specified by the Company for redemption of the Debentures into common shares at a conversion price of $0.92 per common share, being a conversion rate of 1,086.9565 common shares for each $1,000 principal amount of Debentures.

The Debentures will be direct, unsecured obligations of the Company, subordinated to other indebtedness of the Company for borrowed money and ranking equally with all other unsecured subordinated indebtedness.

The Debentures will not be redeemable before December 31, 2017. On or after December 31, 2017, but prior to the Maturity Date, the Company may, at its option, redeem the Debentures, in whole or in part, at a price equal to the principal amount of the Debentures plus all accrued and unpaid interest up to but excluding the date of redemption.

As consideration for their services in connection with the Offering, the Company has paid the Underwriters a cash commission equal to 6% of the gross proceeds of the Offering.

As previously announced, Company intends to use the net proceeds from the Offering for the future purchase of revenue royalties in the Company’s target markets.

An insider of the Company participated in the Offering, thereby making the Offering a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The participation of this insider was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Debentures issued to, or the consideration paid by, the insider exceeded 25% of the Company’s market capitalization.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

 

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; and financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; and that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated April 21, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

June 19, 2014

Grenville Announces $15 Million Bought Deal Financing

Grenville Announces $15 Million Bought Deal Financing

Toronto, Ontario, June 19, 2014 /Marketwire/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) is pleased to announce it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a “bought deal” basis, subject to regulatory approval, $15,000,000 aggregate principal amount of convertible unsecured subordinated debentures (the “Debentures”) at a price of $1,000 per Debenture (the “Offering”). The Company has granted to the Underwriters an overallotment option to purchase up to an additional $2,250,000 aggregate principal amount of Debentures at the same price, exercisable in whole or in part at any time for a period of up to 30 days following closing of the Offering, to cover over-allotments.

Grenville intends to use the net proceeds from the Offering for the future purchase of revenue royalties in the Company’s target markets and for general corporate purposes.

The Debentures will bear interest from the date of issue at 8.00% per annum, payable semi-annually in arrears on December 31 and June 30 each year commencing December 31, 2014. The Debentures will each have a maturity date of December 31, 2019 (the “Maturity Date”).

The Debentures will be convertible at the holder’s option at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date specified by the Company for redemption of the Debentures into common shares at a conversion price of $0.92 per common share, being a conversion rate of 1,086.9565 common shares for each $1,000 principal amount of Debentures.

Closing of the Offering is expected to occur on or about July 10, 2014. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange, and other securities regulatory authorities as applicable.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

 

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; and financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; and that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated April 21, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

June 2, 2014

Grenville Announces Option Grants

Grenville Announces Option Grants

Toronto, Ontario, June 2, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) today announced that it has granted options to acquire an aggregate of 400,000 common shares of Grenville to two directors of the company. All of the options are exercisable at a price of CDN $0.52 per common share and vest quarterly in equal tranches, with the first 25% of the options vesting on the grant date. The options have a term of 5 years and are subject in all respects to the terms of Grenville’s stock option plan.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive return potential.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

May 22, 2014

Grenville Files Financial Statements for Q1 2014

Grenville Files Financial Statements for Q1 2014

Toronto, Ontario, May 24, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”), today announced that it has filed interim condensed consolidated financial statements for the three months ended March 31, 2014. The statements, together with the related management’s discussion and analysis for such period, can be found on SEDAR at www.sedar.com.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

May 12, 2014

Grenville Announces Receipt for Final Prospectus

Grenville Announces Receipt for Final Prospectus

Toronto, Ontario, May 12, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) today announced that it has received a receipt for its short form prospectus dated May 9, 2014 filed with the securities regulatory authorities in the applicable provinces of Canada with respect to the distribution of an aggregate of 20,000,000 common shares issuable pursuant to the exercise of an aggregate of 20,000,000 special warrants (the “Special Warrants”). The Special Warrants were issued on March 27, 2014 at a price of $0.50 per Special Warrant on a “bought deal” private placement basis with a syndicate of underwriters led by National Bank Financial Inc. In accordance with the indenture governing the Special Warrants, each Special Warrant entitles the holder thereof to receive one Common Share on the exercise or deemed exercise of the Special Warrant for no additional consideration. All unexercised Special Warrants will be deemed to have been exercised without the payment of additional consideration or further action on the part of the holder within three (3) business days following the date hereof.

Following the date of the deemed exercise of the Special Warrants, Grenville will have an aggregate of 59,269,856 common shares issued and outstanding.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

April 15, 2014

Grenville Announces Appointment of Independent Directors

Grenville Announces Appointment of Independent Directors

Toronto, Ontario, April 4, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that, effective immediately, Mr. Paul B. Sweeney and Mr. Gaston Tano have been appointed as independent directors of Grenville.

Mr. Sweeney has over 35 years’ experience in financial management of mining and renewable energy companies and has been an independent business consultant since May 2011. Mr. Sweeney is currently a director of Tahoe Resources Inc. (TSX: THO; NYSE: TAHO), where he is chair of the audit committee and a member of the compensation committee, and Mongolia Growth Group Inc. (TSXV: YAK), where he is chair of the audit committee and a member of the compensation committee.

Mr. Tano is a seasoned senior finance executive with over 20 years of experience in global companies. Mr. Tano is currently the Executive Vice-President and Chief Financial Officer of Spin Master Limited, a multi-category children’s entertainment company that is recognized a global growth leader within the toy industry, and previously spent 13 years with Bacardi Limited, the international spirits company, in various progressing finance positions, ultimately becoming Global Corporate Controller of Bacardi. Mr. Tano has both Canadian Charted Professional Accountant and U.S. Certified Public Accountant (Illinois) designations.

Grenville’s Chief Executive Officer, William (Bill) R. Tharp, commented: “We are very pleased with the addition of Messrs. Sweeney and Tano to our board as independent members. This expansion materially strengthens our financial and governance skills, which will become more important as our business continues to grow and the number of financial holdings increase.”

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive return potential.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to the board of directors of Grenville. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. In connection with the forward-looking information and statements contained in this document, Grenville has made certain assumptions. Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of the joint information circular of Troon Ventures Ltd. and Grenville Strategic Royalty Corp. dated January 14, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

April 4, 2014

Grenville Announces Option Grants

Grenville Announces Option Grants

Toronto, Ontario, April 4, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) today announced that it has granted options to acquire an aggregate of 1,500,000 common shares of Grenville to the directors and certain officers of the company. All of the options are exercisable at a price of CDN $0.50 per common share and vest quarterly in equal tranches, with the first 25% of the options vesting on the grant date. The options have a term of 5 years and are subject in all respects to the terms of Grenville’s stock option plan.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive return potential.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

March 27, 2014

Grenville Announces Closing of $10 Million Bought Deal Financing

Grenville Announces Closing of $10 Million Bought Deal Financing

Toronto, Ontario, March 27, 2014 /Marketwire/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) is pleased to announce that it has completed its previously announced offering of 20,000,000 special warrants (the “Special Warrants”) of the Company at a price (the “Issue Price”) of $0.50 per Special Warrant for gross proceeds of $10,000,000. The offering was completed on a “bought deal” private placement basis with a syndicate of underwriters led by National Bank Financial Inc. (collectively, the “Underwriters”).

Each Special Warrant entitles the holder thereof to receive one common share of the Company (a “Common Share”). The Special Warrants will be exercisable by the holders thereof at any time after today’s closing (the “Closing Date”) for no additional consideration and all unexercised Special Warrants will be deemed to be exercised on the earlier of: (a) July 28, 2014, and (b) the third business day after a receipt is issued for a (final) prospectus by the securities regulatory authorities in each of the Provinces of Canada, except Quebec, where the Special Warrants are sold qualifying the Common Shares to be issued upon the exercise or deemed exercise of the Special Warrants (the “Final Qualification Prospectus”). The Company has agreed to use commercially reasonable efforts to obtain a receipt for the Final Qualification Prospectus on or prior to the date that is 60 days from the Closing Date.

As consideration for their services in connection with the offering, the Company has paid the Underwriters a cash commission equal to 6% of the gross proceeds of the offering. As previously announced, Grenville intends to use the net proceeds from the offering for the future purchase of revenue royalties in the Company’s target markets and for general corporate purposes.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: the ability to obtain a final receipt for the Final Qualification Prospectus; prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; and financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: Grenville’s ability to obtain a final receipt for the Final Qualification Prospectus; the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. In connection with the forward-looking information and statements contained in this document, Grenville has made certain assumptions. Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of the joint information circular of Troon Ventures Ltd. and Grenville Strategic Royalty Corp. dated January 14, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

March 6, 2014

Grenville Announces $10 Million Bought Deal Financing

Grenville Announces $10 Million Bought Deal Financing

Read this article on the Market Wired website

TORONTO, ONTARIO–(Marketwired – Mar. 6, 2014) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Company”) is pleased to announce it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a “bought deal” private placement basis 20,000,000 special warrants (the “Special Warrants”) of the Company, at a price (the “Issue Price”) of $0.50 per Special Warrant for gross proceeds of $10,000,000.

Each Special Warrant will entitle the holder thereof to receive one common share of the Company (a “Common Share”). The Special Warrants will be exercisable by the holders thereof at any time after the Closing Date for no additional consideration and all unexercised Special Warrants will be deemed to be exercised on the earlier of: (a) the date that is four months and a day following the Closing Date, and (b) the third business day after a receipt is issued for a (final) prospectus by the securities regulatory authorities in each of the Provinces of Canada, except Quebec, where the Special Warrants are sold qualifying the Common Shares to be issued upon the exercise or deemed exercise of the Special Warrants (the “Final Qualification Prospectus”). The Company has agreed to use its commercially reasonable best efforts to obtain such receipt for the Final Qualification Prospectus on or prior to the date that is 60 days from the Closing Date.

Grenville intends to use the net proceeds from the Offering for the future purchase of revenue royalties in the Company’s target markets and for general corporate purposes. The Offering is scheduled to close on or about March 27, 2014 (the “Closing Date”) and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange, and other securities regulatory authorities as applicable.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: the proposed completion of the offering; the pricing of the offering; prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; and financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements.

An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: Grenville’s ability to complete the offering; the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended. In connection with the forward-looking information and statements contained in this document, Grenville has made certain assumptions. Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of the joint information circular of Troon Ventures Ltd. and Grenville Strategic Royalty Corp. dated January 14, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Annoucements - Portfolio

August 8, 2017

Grenville Strategic Royalty Announces $425,000 Royalty Agreement with Hybrid Financial Ltd.

Grenville Strategic Royalty Announces $425,000 Royalty Agreement with Hybrid Financial Ltd.

TORONTO, Ontario, August 8, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with Hybrid Financial Ltd. (“Hybrid”) to provide $425,000 CDN in growth capital. The JV partners are expected to close additional funds in the next week for a total commitment from the three parties of $750,000 CDN to Hybrid.

Based in Toronto, Hybrid provides investor relations and retail-focused origination and distribution services to the investment management industry throughout North America. Leveraging technology and one of the most comprehensive databases of the Canadian and US retail investment advisor landscape, Hybrid has become one of the leading financial sales and investor relations firms in Toronto.

“Like many Fintech companies, Hybrid has successfully reinvented important steps in the capital markets process” said Grenville CEO Steve Parry. “Their platform transforms and merges the deal origination, distribution and communications functions for companies and capital providers. As both an investor and a potential customer, we see their approach as state of the art with higher success rates than traditional practices.”

About Hybrid Financial Ltd.

Hybrid, founded in 2011 by Steven Marshall, is a specialized investment products and corporate sales, distribution and Investor relations business which delivers its services on an outsourced basis on behalf of several of Canada’s largest and most well respected financial institutions. As a result of its unique automated sales and marketing platform, Hybrid offers a compelling value proposition to publicly listed corporations, investment managers and issuers seeking to find a more efficient and cost-effective means of generating sales through the retail broker/dealer networks

About Grenville

Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

June 21, 2017

Grenville Strategic Royalty Announces USD$500,000 Royalty Agreement with Frequentz, Inc.

Grenville Strategic Royalty Announces USD$500,000 Royalty Agreement with Frequentz, Inc.

TORONTO, Ontario, June 21, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with Frequentz, Inc. (“Frequentz”) to provide USD$500,000 in growth capital.

Based in Palo Alto, CA, Frequentz is a leading provider of comprehensive supply chain traceability and information management solutions, serving some of the world’s largest food and life sciences distributors and manufacturers.  Leveraging technology initially built by Earthbound Farm and IBM, the company’s software provides valuable insights into supply chains and critical business processes by collecting, storing, and analyzing serialized ingredient data through each stage of processing down to their source.

“Frequentz represents an opportunity for Grenville to invest alongside highly regarded Silicon Valley investors and entrepreneurs with deep domain expertise in a leading supply chain technology company” said Grenville CEO Steve Parry. “This is a good example of our focus on investments with quality management and capital partners, where our royalty product is ideally suited to act as a catalyst for future growth.”

Frequentz, Inc.

Frequentz provides serialized data, supply chain traceability, and information management software solutions to major food and life sciences companies. Frequentz ’s primary offering, their Information Repository & Intelligence Server (“IRIS”) tracks, traces, serializes, verifies, captures, stores, and analyses product event data, at the unit or lot level, as the product moves through the supply chain.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

June 14, 2017

Grenville Strategic Royalty Announces Completion of Transaction To Restructure Lattice Biologics Investment

Grenville Strategic Royalty Announces Completion of Transaction To Restructure Lattice Biologics Investment

TORONTO, June 14, 2017 (GLOBE NEWSWIRE) — Grenville Strategic Royalty Corp. (TSXV:GRC) (“Grenville” or the “Company”) today announced that, as previously disclosed, it has acquired 18,246,600 common shares (“Shares”) of Lattice Biologics Ltd (TSXV:LBL) (“Lattice”) at an issue price of CDN$0.20 in exchange for the extinguishment of USD$2,000,000 of Grenville’s original royalty investment in Lattice and USD$700,000 of overdue royalty payments owing by Lattice to Grenville under the existing royalty agreement between the parties. As a result of the issuance of the Shares, Grenville holds approximately 19.68% of the total issued and outstanding common shares of Lattice. The Shares are subject to a four-month hold period under applicable securities laws. Grenville has filed an early warning report on SEDAR in respect of its acquisition of the Shares.

About Grenville
Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

June 5, 2017

Grenville Strategic Royalty Announces $USD350,000 Royalty Agreement with Kare Intellex Inc.

Grenville Strategic Royalty Announces $USD350,000 Royalty Agreement with Kare Intellex Inc.

TORONTO, June 05, 2017 (GLOBE NEWSWIRE) — Grenville Strategic Royalty Corp. (TSXV:GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with Kare Intellex Inc. (“Kare”) to provide USD$350,000 in acquisition and growth capital.

Kare offers software that automates tedious paper record-keeping and insurance billing for home health agencies. With this financing, the company has completed the acquisition of Alternacare Home Health Services Inc. (“Alternacare”) which will serve as a platform for demonstrating the value of the Kare  software.  By combining the two businesses, Kare will be able to fully integrate with medical providers, large insurance providers, and families to significantly improve the way home care is delivered.

“We are very pleased to add to our technology-enabled healthcare portfolio with the investment in Kare Intellex,” said Grenville CEO Steve Parry. “Hanad Duale, Cindy Thiel and their industry-expert board are taking advantage of the strongest trend in US healthcare – the move towards homecare as a more cost effective and patient-friendly method of delivering services. We believe the combination of Kare’s technology platform with the acquisition of Alternacare is a great model for demonstrating this approach.”

About Kare Intellex Inc.

Kare Intellex Inc. has developed an on-demand mobile platform that is transforming homecare delivery by empowering patients, caregivers and payers to reduce costs and focus resources where they’re needed most, patient care.  Via its recent acquisition of Alternacare, the company now offers home health services to patients located in the South East of the state of Ohio.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

May 9, 2017

Grenville Strategic Royalty Announces $1,500,000 Royalty Agreement with ConnectAndSell, Inc.

Grenville Strategic Royalty Announces $1,500,000 Royalty Agreement with ConnectAndSell, Inc.

TORONTO, Ontario, May 8, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with ConnectAndSell, Inc. (“ConnectAndSell”) to provide US$1,500,000 in growth capital.

ConnectAndSell, a Silicon Valley–based corporation established in 2007, has developed the world’s most advanced on-demand sales-acceleration platform. ConnectAndSell’s technology-enabled service overcomes the limitations of commonly used predictive and power dialers and increases the average number of live conversations per rep by a factor of 8-10X. The company achieves this through a combination of patented technology and minimal human agent touch. To date, ConnectAndSell has made more than 100 million dials and delivered over five million conversations to more than one thousand B2B customers, ranging from aggressive startups to the most established enterprises.

“With over 100 million fully navigated dials executed for its customers, ConnectAndSell has clearly demonstrated the value of its sales acceleration platform, earning recognition by Forbes Magazine as one of the 10 Most Innovative Companies to Watch in 2016,” said Grenville CEO Steve Parry. “We are investing with this management team of highly regarded Silicon Valley veterans including Chris Beall, Shawn McLaren and Jonti McLaren because they have demonstrated their commitment to the enterprise by growing the business with their own capital. Our non-dilutive royalty product, an alternative to traditional venture capital, is a very good fit with their continuing objective to retain strong ownership while accelerating growth.”

About ConnectAndSell, Inc.

ConnectAndSell, a Silicon Valley–based corporation established in 2007, has developed the world’s most advanced on demand sales-acceleration platform. ConnectAndSell’s technology-enabled service overcomes the limitations of commonly used predictive dialers and increases the average of number of live conversations per rep by a factor of 8-10X. The company achieves this through a combination of patented technology and minimal human agent touch.

 About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

April 26, 2017

Grenville Strategic Royalty Announces Restructuring of Lattice Biologics Investment

Grenville Strategic Royalty Announces Restructuring of Lattice Biologics Investment

TORONTO, Ontario, April 26, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced that, subject to the approval of the TSV Venture Exchange, 18,246,600 common shares (“Shares”) of Lattice Biologics Ltd (TSXV: LBL) (“Lattice”) will be issued to the Company at an issue price of CDN$0.20 in exchange for the extinguishment of USD$2,000,000 of Grenville’s original royalty investment in Lattice and USD$700,000 of overdue royalty payments owing by Lattice to Grenville under the existing royalty agreement between the parties. Immediately following the issuance of the Shares, Grenville expects that it will hold approximately 19.7% of the total issued and outstanding common shares of Lattice. The Shares will be subject to a four-month hold period under applicable securities laws.

Pursuant to the transaction, the existing royalty agreement will be terminated and additional overdue royalty payments of US$69,512 will be extinguished. The remaining USD$1,000,000 of the original royalty investment will be converted to a new royalty equal to 1.25% of the revenue of Lattice, payable quarterly as and when cash and cash equivalents of Lattice for a quarter exceed the cash and cash equivalents of Lattice for the previous quarter by at least USD$100,000.
In addition, the parties have agreed to amend the secured note in the principal amount of USD$700,000 issued by Lattice to Grenville on July 31, 2015 (the “Secured Note”) to extend the maturity date until April 24, 2022, and to change the interest rate from 12.5% per annum to 4.244% per annum. Accrued interest owing under certain unsecured promissory notes issued by Lattice to Grenville will also be extinguished.

“Lattice has made good progress on their development of new products,” said Grenville CEO Steve Parry. “Based on this progress, Grenville believes that transitioning our investment to a blend of equity, royalty and debt provides the best opportunity for positive financial returns for Grenville’s shareholders while improving Lattice’s balance sheet for future growth opportunities.”
Completion of the transaction is subject to all necessary approvals, including the approval of the TSX Venture Exchange.

About Grenville
Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:

Grenville Strategic Royalty Corp.:
Steven Parry
Chief Executive Officer
Tel: (416) 777-0383

April 25, 2017

Grenville Strategic Royalty and Joint Venture Partners Announce $250,000 Royalty Agreement with Fixt Wireless Inc.

Grenville Strategic Royalty and Joint Venture Partners Announce $250,000 Royalty Agreement with Fixt Wireless Inc.

TORONTO, Ontario, April 25, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with Fixt Wireless Inc. (“Fixt”) to provide CDN$125,000 in growth capital. Grenville’s investment partners, Foregrowth Holdco Inc. and Darwin Strategic Royalty Corp., invested alongside Grenville, for a total commitment from the three parties of CDN$250,000 to Fixt.

Fixt is a Toronto-based B2B and B2C wireless device repair service provider, set-up by a team of industry veterans to lead a multi-billion-dollar market that is relevant to 90% of the Canadian population. The Fixt brand is quickly becoming synonymous with an unwavering commitment to quality, data security, and timely service.

“Fixt is a stellar example of the type of technology service business we seek. We are delighted to be co-investing alongside this world class management team led by Garry Wood,” said Grenville CEO Steve Parry. “We believe Garry and his team are building a great Canadian brand in the emerging market for cell phone repair where one or two dominant firms will emerge over the next few years. We believe their business plan, expertise and exceptional networks built over decades in the telecom industry position Fixt to be one of the winners in this race.”

About Fixt Wireless Inc.

Fixt is a privately-held, emerging national leader in the B2B and B2C Canadian wireless repair space.  In 100% corporately owned locations, the company provides clients with same-day service for most repairs, as well as a variety of warranty programs, mail-in, pick-up, and delivery services for corporate customers.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

April 19, 2017

Grenville Strategic Royalty Announces $5 Million Contract Buyout of Aquam Corporation Agreement

Grenville Strategic Royalty Announces $5 Million Contract Buyout of Aquam Corporation Agreement

TORONTO, Ontario, April 19, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced the contract buyout of its royalty agreement with Aquam Corporation (“Aquam”) for CDN$5 million.

Grenville’s total return from its CDN$2 million investment was CDN$5 million plus all royalties earned since the inception of the investment in June 2014. The contract buyout transaction also generated CDN$2.8 million of free cash flow for Grenville.

“We want to congratulate the Aquam team on the transformational financing that facilitated the buyout of the Grenville royalty and wish them continued success with their exciting business,” said Steve Parry, Chief Executive Officer of Grenville. “We are proud to have been a contributor to this successful outcome as an early capital provider. This is our highest cash on cash return to date, a strong demonstration of the value of our combined royalty-buyout financing structure. Grenville has now received more than $23.9 million in cash inflows from the seven buyouts to date. The proceeds from contact buyouts, like this one, provide us with a non-dilutive source of capital to redeploy across new opportunities. These new investments, together with the leverage in the portfolio from the participation of our joint venture partners, support our core objectives of diversification and scale. With CDN$11.8 million in capital ready to deploy, we are very well positioned for 2017 growth.”

Aquam is an integrated pipe infrastructure solutions company based in San Diego, California, that provides proven technology solutions to owners and operators of both water and natural gas pipe infrastructures.

Resignation of Director

Grenville also announced that effective May 1, 2017, Gaston Tano will resign as a director of Grenville.

“On behalf of Grenville, I would like to thank Gaston for the commitment he has demonstrated to Grenville since its inception. His expertise, advice and professionalism in his role as a director and as the Chair of the Audit Committee were invaluable,” said Catherine McLeod-Seltzer, Chair of Grenville. “We wish him the very best in his future endeavors.”

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

April 18, 2017

Grenville Strategic Royalty and Joint Venture Partners Announce US$300,000 Royalty Agreement with MedWorxs

Grenville Strategic Royalty and Joint Venture Partners Announce US$300,000 Royalty Agreement with MedWorxs

– Follow-on investment of US$250,000 in Factor 75 –

TORONTO, Ontario, April 18, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has signed a royalty purchase agreement with MedWorxs LLC (“MedWorxs”) to provide US$150,000 in growth capital. Grenville’s investment partners, Foregrowth Holdco Inc. and Darwin Strategic Royalty Corp., invested alongside Grenville, for a total commitment from the three parties of US$300,000 to MedWorxs.

Medworxs is a privately-held, Denver-based company that provides inpatient and ambulatory software solutions to healthcare facilities through its proprietary cloud-based, software-as-a-service platform. Its service offering includes electronic health records, ambulatory health records, revenue cycle management software, financial and management software.

In addition to the investment in MedWorxs, Grenville and its joint venture partners also announced a follow-on investment of US$250,000 in Factor 75, a healthy meal delivery company. Grenville committed US$125,000 to the follow-on investment based on the exceptional growth demonstrated by Factor 75 during the first quarter of 2017.

“MedWorxs is an excellent example of a company that fits our go-forward investment strategy. It is a recurring revenue business with an established growth strategy, run by highly experienced experts in the target market,” said Steve Parry, Chief Executive Officer of Grenville. “Similarly, Factor 75 has demonstrated the high growth potential of their fitness-based meal service again with a highly talented team and proven execution capability.”

About MedWorxs LLC

MedWorxs is a privately-held, international leader in inpatient and ambulatory software solutions. Its cloud based technology is modern in design, delivering the right features for its customer base. MedWorxs is software, people and expertise dedicated to helping the  organization meet regulatory commitments, reduce costs, errors and improve the quality of care.

About Factor 75

Based in Chicago and founded in 2012, Factor 75 is dedicated to optimizing people’s lives by giving them more energy, time and a fresh perspective on how to live. The Factor 75 approach takes care of planning, preparing and delivering healthy, nutritious meals to customers nationwide across the United States.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Grenville Strategic Royalty Corp.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

December 28, 2016

Grenville and Joint Venture Partners Complete CDN$250,000 Royalty Investment in eSCRIBE

Grenville and Joint Venture Partners Complete CDN$250,000 Royalty Investment in eSCRIBE

TORONTO, Ontario – December 28, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”), along with partners Foregrowth Holdco Inc. (“Foregrowth”) and Darwin Strategic Royalty Corp. (“Darwin”), is pleased to announce that it has contracted for a gross sales royalty from eSCRIBE. (“Escribe”) in exchange for an advance of $250,000 CDN. As part of the joint venture agreements with Foregrowth and Darwin, Grenville will fund $125,000 CDN of the investment, while Foregrowth and Darwin will each fund $62,500 CDN. Grenville and the joint venture partners will receive a royalty based on Escribe’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.

Founded in 2003, eSCRIBE is a leading North American provider of secure cloud based paperless board meeting software solutions, and has become the go-to choice of public and private sector boards, committees and councils looking to boost transparency, citizen participation, improve organizational efficiency and meet evolving accessibility standards. eSCRIBE’s Microsoft Azure cloud-based configurable suite of collaborative meeting management software can be used to create and enforce predictable, repeatable meeting patterns for collaboration among people working under a mandate towards a goal.

“We are pleased to welcome Grenville and its partners as one of the lead investors in our latest investment round,” said Robert Treumann, eSCRIBE’s Chief Executive Officer. “With the closing of this strategic growth capital, our already competitive solution set, and expanded Microsoft co-selling partnership, we are well positioned to continue to expand both our North American and International footprint.”

Grenville CEO, Steve Parry, commented, “Escribe is at the forefront of its industry as a paperless meeting automation solution and governance platform and we look forward to helping the company expand its reach with this investment.”

About eSCRIBE
eSCRIBE is a leading independent cloud provider of paperless legislative meeting management solutions. eSCRIBE’s robust user configurable meeting management engine and award winning SharePoint integration, is the go-to choice of public and private sector boards, committees and councils looking to improve efficiency, transparency and accessibility while at the same time reducing costs and impact to the environment. With eSCRIBE meeting outputs can be easily published to the web, indexed to video and audio if available; all in accordance with evolving access and accessibility requirements. With a broad base of experience and industry certifications in the design, development and support of custom legislative business process management solutions; eSCRIBE’s internal team of subject matter experts, project managers, business consultants, software engineers, quality assurance testers, and documentation experts do not outsource or subcontract any of the development, support or enhancement of its products.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance, including the performance of the joint ventures referenced herein; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the Company’s ability to pay dividends in the future and the timing and amount of those dividends;; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s ability to successfully manage its joint venture relationships; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION
Grenville Strategic Royalty Corp.
Steven Parry
Chief Executive Officer
(416) 777-0383

December 19, 2016

Grenville and Joint Venture Partners Complete US$500,000 Royalty Investment in Factor75, LLC

Grenville and Joint Venture Partners Complete US$500,000 Royalty Investment in Factor75, LLC

TORONTO, Ontario, December 19, 2016 – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”), along with partners Foregrowth Holdco Inc. (“Foregrowth”) and Darwin Strategic Royalty Corp. (“Darwin”), is pleased to announce that it has contracted for a gross sales royalty from Factor75, LLC (“Factor 75”) in exchange for an advance of $500,000 USD. As part of the joint venture agreements with Foregrowth and Darwin, Grenville will fund $250,000 USD of the investment, while Foregrowth and Darwin will each fund $125,000 USD. Investors will receive a royalty based on Factor 75’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.

Based in Chicago, Illinois, Factor 75 is a performance nutrition company dedicated to optimizing people’s lives, by providing them with more time, energy and a fresh perspective on how to live. Crafted by leading nutritionists and chefs, Factor 75 uses the highest quality ingredients in its meals coupled with culinary excellence to provide customers with optimal nutrition and exceptional taste.

Factor 75 Chief Executive Officer, Nick Wernimont, commented, “Partnering with Grenville provides Factor 75 with the capital for our next phase of growth and to meet the rapidly growing demand for our product. We look forward to working with Grenville to build and strengthen our company further.”

Grenville CEO Steve Parry, says of the new investment, “This is an exciting investment for Grenville and our joint venture partners. Factor 75 brings its customers a transformative product and we’re excited to be part of the company’s expansion and development.”

About Factor 75

Factor 75, an online personalized chef service based in Chicago, prepares and delivers meals throughout the United States. Our meals are specially designed by a team of nutritionists and chefs to provide an optimal balance of nutrition and taste to enhance performance in all aspects of your life. Our name is based on research showing 75% or more of your fitness results come from what you eat. Factor 75 is about outsourcing your nutrition so you can spend more time doing the activities you love while still enjoying and feeling good about what you eat.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance, including the performance of the joint ventures referenced herein; including the Company’s opinion regarding the current and future performance of its portfolio, expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the Company’s ability to pay dividends in the future and the timing and amount of those dividends;; and the Company’s financial position. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenues; the Company’s ability to manage future growth; the limited diversification in the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new investee companies; the Company’s dependence on the operations, assets and financial health of its investee companies; the Company’s ability to successfully manage its joint venture relationships; the Company’s limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company being classified as a Passive Foreign Investment Company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly the Company’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions; as well as the risks discussed under the heading “Risk Factors” on pages 16 to 22 of the Annual Information Form of the Company dated February 11, 2015 and the risks discussed herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect the Company’s business and its ability to identify and close new opportunities with new investees are material factors that the Company considered when setting its strategic priorities and objectives, and its outlook for its business.

Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that the Company’s existing investees will continue to make royalty payments to the Company as and when required; that the businesses of the Company’s investees will not experience material negative results; that the Company will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital; that the Company will have the ability to raise required equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, the Company primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

November 18, 2016

Grenville Announces First Joint Venture Investment – Follow-on Financing in Expert Homes

Grenville Announces First Joint Venture Investment – Follow-on Financing in Expert Homes

TORONTO, Ontario, November 18, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced the closing of a $500,000 follow-on financing in Expert Homes, an Alberta-based manufacturer of modular homes. The transaction represents the first investment under the joint venture arrangements with Foregrowth Holdco Inc. (“Foregrowth”) and Darwin Strategic Royalty Corp. (“Darwin”) announced last month.

Grenville funded $250,000 of the follow-on and the Foregrowth JV and Darwin JV funded an additional $125,000 each. The funds will be used to continue to accelerate growth at Expert Homes, where sales have been very robust in 2016, well ahead of plan from the time of the original Grenville investment. With this investment, Grenville has invested a total of $1,810,000 in the company including the original $1,560,000 investment in April 2015.

“We believe Expert Homes is an excellent choice as the first co-investment given the exceptional performance of the company and the value our joint venture partners can bring to the table above and beyond capital,” said Steve Parry, Chief Executive Officer of Grenville. “We believe this investment is a great start to what we see as an exciting investment platform for the three partners.”

“This first investment, just one month after the closing of the Joint Venture agreement, represents an excellent start to our portfolio development,” said Vishy Karamadam, Director of Foregrowth-Grenville Investments Inc. “We look forward to continued growth in the portfolio in the coming months.”

“Grenville has provided us with a robust pipeline of deals for investment,” said Louis Desmarais, Managing Partner of Darwin Strategic Royalty Corporation. “The Expert Homes investment matches well with our expectations for joint funding opportunities with Grenville and we look forward to building a diverse portfolio of investments through the joint funding arrangements.”

“Grenville has been a highly strategic partner since their first investment,” said Brad Sanders, CEO of Expert Home. “We appreciate the vote of confidence from this tranche of capital provided by Grenville, Foregrowth and Darwin, and we are enthusiastic as this capital will help to fuel our business providing high quality, sustainable homes to our many First Nations partners.”

About Grenville
Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.
For further information, please contact:
Grenville Strategic Royalty Corp.
Steve Parry
Chief Executive Officer
Tel: (416) 777-0383
March 7, 2016

Grenville Announces Investments in Compression/Generation Services and WATCH IT!

Grenville Announces Investments in Compression/Generation Services and WATCH IT!

Toronto, Ontario, March 7, 2016 Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that is has completed follow-on investments in Compression/Generation Services LLC (“CGS”) and WATCH IT! Incorporated (“WATCH IT!”).

Grenville has provided CGS, an industrial services business, with a secured short-term revolving royalty facility of up to US$2.5 million. This facility will be used to eliminate more expensive forms of debt and to assist the CGS with a materially growing order book. If this facility is fully utilized, Grenville’s total investment in CGS will be US$5.5 million.

Grenville has also made a CDN$1 million secured short-term royalty investment in WATCH IT!, a speciality retailer of watches and sunglasses, to facilitate a corporate reorganization and to provide working capital for WATCH IT! through the Q1 retail season. As a result of this investment, Grenville’s total investment in WATCH IT! is CDN$3 million.

“These investments offer the two companies use of much less expensive capital. As we’ve seen previously, these types of extended financial relationships give our portfolio companies leverage while at the same time reducing risk in our portfolio,” said Grenville’s CEO, William R. Tharp. “Deal flow at Grenville has been strong.  As we consider the weakened Canadian economy and the volatility both in the US and Canadian markets, we see considerable advantages to supporting our existing portfolio.”

Grenville is also pleased to announce that it will release its 2015 annual financial results on April 19, 2016. Mr. William Tharp, Chief Executive Officer, Mr. Donnacha Rahill, Chief Financial Officer and Mr. Steven Parry, Executive Chairman, will host a conference call at 8:00AM EST on the same day to review the results. A question and answer session will follow the corporate update.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. To date, Grenville has announced cash inflows of $23.4 million from $60.6 million invested since its inception in July 2013.

For more information, please contact:

Grenville Strategic Royalty Corp.

William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

December 9, 2015

Grenville Completes CDN $9.6 Million in Three New Investments

Grenville Completes CDN $9.6 Million in Three New Investments

TORONTO, ONTARIO–(Marketwired – Dec. 9, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) is pleased to announce that it has contracted for gross sales royalties from 3 companies: Steam Plant and CHX Systems Limited (“Steam Plant”); Compression/Generation Services, LLC (“Compression Generation Services”), and Westlake Financial Group Inc. (“Westlake”) for US$2,000,000, US$3,000,000 and US$2,000,000, respectively, for a total of CDN$9.6 Million. In exchange for these advances, Grenville will receive royalties based on the respective company’s gross revenues.

“Steam Plant, Compression Generation Services and Westlake are three solid royalty investments materially diversifying and growing the Grenville portfolio,” says Grenville Chief Executive Officer William (Bill) R. Tharp. “Westlake and Compression Generation Services are both closely held family businesses where Grenville provides an important source of capital, enabling the families to retain control of their business while focusing on future growth. Steam Plant is a great example of the patience and discipline Grenville shows in working with a capable and focused management team over what has been a 2 year re-structuring process. These investments are a material strengthening of our royalty holdings.

In Q2 and Q3, Grenville focused on generating five contract buyouts, returning $9.2 million in capital with a further $5.4 million in realized gains. In Q4, we have deployed $13.1 million in four high quality investments, demonstrating our ability to readily redeploy returned capital in short order. With these investments, Grenville has since its inception deployed $56.9 million into 31 companies through 55 investments. In addition, we have seen a 42% increase in our deal velocity in 2015 relative to 2014.”

Steam Plant CHX

Based in Greenfield Park, Quebec, Steam Plant CHX offers engineering solutions focused on energy efficiency and emissions reduction. SPCS is a distributor of related equipment specialized in integration and controls services to industrial and institutional customers across North America. The Company also owns, markets and sells a patented emissions reduction system using Teflon® to resist highly acidic bi-products of unconventional fuels such as bio gas and refuse derived fuel.

Compression Generation Services

Based in Houston, Texas, Compression Generation Services is a leader in high pressure compressor fabrication, sales, services and support. As a servicer and provider of refurbished high pressure gas compressors and power generators, Compression Generation Services specializes in equipment and parts sourcing, retro-fits, installations and onsite equipment servicing and refurbishing.

Westlake

Based in Lake Forest, Illinois, Westlake is a local leader in HR consulting and employee benefits and related technology services. By using technology and personalized expertise to provide clients with web-based solutions, claims administration, broker and consulting services, third party administration, and US-based call centre support, Westlake enables their clients to focus on core human resources activities. Westlake also owns SaveUp.com, a San Francisco based online personal financial management company offering money saving and debt reduction solutions to consumers.

Following the purchases of these 3 royalty agreements Grenville has approximately $17.8 million of capital available for future investments.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. To date, Grenville has announced cash inflows of $23.4 million from $56.9 million invested in the two years since its inception.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information
Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

November 27, 2015

Grenville Announces Closing of 4TELL™ Solutions Royalty Contract Buyout

Grenville Announces Closing of 4TELL™ Solutions Royalty Contract Buyout

TORONTO, ONTARIO–(Marketwired – Nov. 27, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) today announced the buyout of its investment in 4tell™ Solutions (Canada) Inc., Grenville’s fifth contract buyout in 2015. Grenville’s total return, from its investment in December 2013, represents an IRR of approximately 42% and a 1.75x cash on cash return.

“This is another solid return for our portfolio,” said Grenville’s Chief Executive Officer, William (Bill) Tharp. “This Contract Buyout brings our total to five in 2015, generating $14.6 million of capital on $9.15 million of invested capital, for an average cash on cash return of 1.84 times our investments. This represents an acceleration of cash flows to Grenville across these investments by 6.6 years based on royalty streams at the time of the buyout. This also represents another great example of the strength of Grenville’s business model by providing our shareholders access to venture capital-like returns through Contract Buyouts with the underlying strength of a growing and diversified portfolio providing consistent dividend returns.”

Following this transaction, Grenville has approximately $27.2 million of capital available for investments.

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. To date, Grenville has announced cash inflows of $22.7 million from $47.4 million invested in the two years since its inception.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION

  • Grenville Strategic Royalty Corp.

    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
October 26, 2015

Grenville Announces Closing of Above Security Royalty Exit

Grenville Announces Closing of Above Security Royalty Exit

TORONTO, ONTARIO–(Marketwired – Oct. 26, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) has received from Above Security Inc. $6.7 million net of transaction costs, completing the previously announced buyout of the $3 million royalty agreement and repayment of two bridge notes totaling $960,000. Above Security is a Montreal-based provider of managed cyber-security services which was previously reported on August 27, 2015.

“Grenville provided the catalytic capital that enabled us to successfully transition to the next stage of our company,” said Ray Chehata, Chief Executive Officer of Above Security. “Grenville’s professional and financial support throughout the sale process was critical to this highly favourable outcome for all parties.”

“We are very pleased with this transaction, and this investment is our highest return to date for Grenville shareholders,” said Grenville Chief Executive Officer William (Bill) Tharp. “Grenville generates stable royalty revenues and cash flow for our shareholders with the upside of equity-like returns on royalty buyouts. This is an excellent example of how our business model works to the benefit of our shareholders and the businesses within our portfolio.”

Following this transaction, Grenville has approximately $29.4 million of capital available for investments.

Details of the Above Security transaction can be found here.

 

About Grenville

Based in Toronto, Grenville Strategic Royalty Corp. is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms. To date, Grenville has announced cash inflows of $19.7 million from $42.7 million invested in the two years since its inception.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

August 27, 2015

Grenville Completes Investment in Medallion Holding Company, LLC

Grenville Completes Investment in Medallion Holding Company, LLC

Toronto, Ontario, August 27, 2015/Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that it has contracted for a gross sales royalty from Medallion Holding Company, LLC (“Medallion”) in exchange for an advance of $2,000,000 USD with an option, if agreed upon by both companies, to advance an additional $1,000,000 USD at a later date. In exchange for this advance, Grenville will receive a royalty based on Medallion’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.
 
Headquartered in Boardman, Ohio, with offices in Scottsdale, Arizona and Irvine, California, Medallion operates two primary businesses; Medallion Financial Distributors and Medallion Wealth Partners. Medallion Financial Distributors is a premier Insurance Marketing Organization (IMO), giving advisors access to a full spectrum of financial vehicles including top annuity and life products, service and lead generation tools. The company is a founding member of Annexus Group, a nationally recognized product development firm that excels in driving innovation, development and distribution of guaranteed retirement income and accumulation products. Medallion Wealth Partners is a new entity focused on comprehensive financial planning, specifically providing accounting, legal, and financial services to assist clients in the establishment and achievement of financial objectives that facilitate their life goals. Medallion is also actively acquiring companies in the tax and accounting field in California as they grow their full-service financial planning business.
 
Medallion President, Michael Rossi, says of the new investment, “Grenville’s product proved to be a solid fit with our current requirements to grow the business. Their team has been receptive and enjoyable to work with since day one. We are motivated and look forward to working with Grenville to build our company in the future.”
 
“Michael and his team have built a highly consistent IMO business and are now focused on building-out a higher-growth financial planning business.” said William (Bill) R. Tharp, Grenville’s CEO. “We’ve been impressed with Medallion’s high quality and diverse product line as well as their execution in the rollout of their new line of business. With an infusion of capital from Grenville, we anticipate the team at Medallion to continue to grow their business. This is also an investment in the non-bank financial services sector of our portfolio, a non-correlated business category we’re looking for investments in – Michael, his Team and the Medallion model fits this position well.”
 
To date, Grenville has completed approximately $41.80 million in royalty and royalty-linked investments, building a diversified portfolio in Canada and the United States.
 
About Medallion
Headquartered in Boardman, Ohio, with satellite offices in Scottsdale, Arizona and Irvine, California, Medallion is a premier Insurance Marketing Organization that gives advisors access to top annuity and life products, service and lead generation tools. The company is a founding member of Annexus Group, a nationally recognized product development firm that excels in driving innovation, development and distribution of guaranteed retirement income and accumulation products. Medallion Wealth Partners is a full-service firm providing tax, accounting, legal and financial planning services to small businesses and families.
 
About Grenville
Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing small and medium sized enterprises (SMEs). Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

 
For more information, please contact:
Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383
 
Forward-Looking Information and Statements
 
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance, including the Company’s opinion regarding the current and future performance of its portfolio; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
 
In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.
 
Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.
 
For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Grenville Announces Portfolio Updates

Grenville Announces Portfolio Updates

TORONTO, ONTARIO–(Marketwired – Aug. 27, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Company”) today announced that it has entered into a buyout agreement with Above Security Inc. (“Above Security”), one of its investee companies, as a result of the proposed acquisition of Above Security by Hitachi Systems, Ltd. (“Hitachi”), a wholly owned subsidiary of Hitachi, Ltd. Above Security will, in accordance with the terms of the royalty agreement between the parties and subject to the completion of the Hitachi acquisition, buy out Grenville’s royalty investment in Above Security. Grenville will receive a buyout payment of $6.2 million, less transaction-related expenses, upon closing of the Hitachi acquisition, which is expected to be completed on or around October 15, 2015 subject to the satisfaction of conditions of closing typical for transactions of this nature.

Based on the $3.18 million invested by Grenville in Above Security, this results in a total return of approximately $3 million, representing an IRR of approximately 128% and a 2.1x cash on cash return.

“As with the successful exit of our investment in Wmode, the anticipated exit of our investment in Above Security represents another excellent example of an opportunity to monetize immediate gains in our portfolio,” said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “The $8.8 million in exits from Wmode and Above Security are examples of the type of expected investment outcomes that provide positive offsets to the also expected impairments inherent in an SME portfolio, more than balancing the bookends of a higher-risk, higher-return portfolio.

“Investing in small and medium-sized enterprises by its nature brings wins and losses, but we continue to believe that the core of our portfolio – the investments that represent the bulk of our recurring revenue and drive consistent cash flows and fundamentals – is the underlying strength of our business. We’ve seen that core strengthen materially quarter over quarter and remain even more confident today that the repeatability of our business model will create consistent growth over the long term,” continued Mr. Tharp.

APO Solutions Recovery

Notwithstanding the impairment taken by the Company in 2014 in its $1 million investment in APO Solutions, the Company has aggressively pursued enforcement measures in an effort to recover some portion of its investment. As a result of those enforcement measures, the Company has successfully recovered almost 50% of its initial investment. Net of transaction and enforcement costs, the Company estimates that the recovery will result in a positive impact to profits of between $400,000 and $440,000.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing small and medium sized enterprises. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance, including the Company’s opinion regarding the current and future performance of its portfolio; expenses and operations; anticipated cash needs and need for additional financing; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position.

By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

August 25, 2015

Hitachi to Acquire Above Security

Hitachi to Acquire Above Security

Toronto, Ontario, August 25, 2015 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) provides the following link to the press release issued today by its portfolio company Above Security Inc. (“Above Security”) regarding the proposed acquisition of Above Security by Hitachi Systems, Ltd., a wholly-owned subsidiary of Hitachi, Ltd.:  

http://www.abovesecurity.com/press-room/hitachi-systems-acquires-above-security/

Grenville considers the announcement to be positive and will provide a further update to the market on this development once more information becomes available.

For more information, please contact:

Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

August 6, 2015

Blackstone to Acquire Lattice Biologics

Blackstone to Acquire Lattice Biologics

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

 

Vancouver, British Columbia, August 6, 2015 – Blackstone Ventures Inc. (the “Company” or“Blackstone”(TSX-V: BLV) is pleased to announce that it has entered into a letter of intent (the “LOI”), pursuant to which, subject to receipt of all applicable regulatory and shareholder approvals, the Company has agreed to acquire (the “Acquisition”) all of the issued and outstanding securities of Lattice Biologics Inc. (“Lattice”), a private, arm’s-length Delaware corporation (the “Business Combination”).

Consolidation and Debt Settlement
As a condition to the completion of the Business Combination, subject to the approval of the TSX Venture Exchange (the “Exchange”), Blackstone intends to: 1) complete a consolidation (the “Initial Consolidation”) of its outstanding common shares on the basis of twenty (20) pre-Initial Consolidation shares for each one (1) post-Initial Consolidation common share, as previously approved by shareholders; and 2) settle (the “Debt Settlement”) up to CAD $600,000 in outstanding debt through the issuance of subscription receipts convertible into up to 6,000,000 post-Initial Consolidation common shares (the “Settlement Subscription Receipts”) at a price of CAD $0.10 per Settlement Subscription Receipt. It is currently anticipated that, under the Debt Settlement, Donald McInnes, Chief Executive Officer of Blackstone, will receive Settlement Subscription Receipts in settlement of outstanding amounts owed to him by the Company convertible into a sufficient number of the then outstanding common shares of Blackstone to become a new “Control Person”, as that term is defined under the Policies of the Exchange.

The Settlement Subscription Receipts shall automatically, convert into underlying securities of Blackstone upon the date that is the earlier of: a) the date that the Acquisition closes; and b) the date that shareholder approval is obtained for the creation of a new Control Person pursuant upon conversion of the Settlement Subscription Receipts (together, the “Settlement Conditions”). If neither Settlement Condition is satisfied on or before 5:00 pm (Vancouver Time) on December 31, 2015 (the “Escrow Deadline”), the Settlement Subscription Receipts shall automatically terminate and become void, and all debts owed by the Company thereunder shall remain due and owing by Blackstone in accordance with their original terms.

Certain amounts proposed to be settled with Mr. McInnes and other directors of Blackstone (the “Related Party Settlements”) under the Debt Settlement are “related party transactions” under the policies of the Exchange and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Related Party Settlements are exempt from the formal valuation requirements under Section 5.4 of MI 61-101 and the minority approval requirements under Section 5.6 of MI 61-101 pursuant to the Company’s reliance on the exemptions available under MI 61-101. There has been no prior formal valuation of the Related Party Settlements as there has not been any necessity to do so. The Related Party Settlements are subject to review and approval by the Company’s board of directors.

Transaction Structure
Subject to the receipt of all requisite corporate, shareholder, and regulatory approvals, in connection with the completion of the Acquisition, Blackstone intends to complete a further consolidation (the “Acquisition Consolidation”) of its common shares on the basis of three (3) pre-Acquisition Consolidation common shares for each one (1) post-Acquisition Consolidation common share (effectively being a 60:1 consolidation of the common shares of Blackstone as at the date hereof) (the “Post- Acquisition Consolidation Blackstone Shares”). In connection with the Acquisition Consolidation, the Settlement Subscription Receipts will also be consolidated on the basis of three (3) pre-Acquisition Consolidation Settlement Subscription Receipts for each one (1) Post-Acquisition Consolidation Subscription Receipt, resulting in a total of 2,000,000 post-Acquisition Consolidation Subscription Receipts outstanding, each convertible into one Post-Acquisition Consolidation Blackstone Share at an effective price of CAD $0.30 per share.

As at the date hereof, Lattice has 15,875 common shares issued and outstanding (the “Lattice Common Shares”), and convertible notes convertible having an aggregate principal amount of USD $1,050,000 (the “Lattice Notes”) issued and outstanding. In addition, Lattice is in the process of issuing an aggregate of 824 common shares to two arm’s length parties (the “New Shares”), and granting rights to acquire an aggregate of 1,500,000 post-Acquisition common shares over a period of three years in consideration of services to be rendered up to and including January 1, 2018, (the “Compensation Shares”) to arm’s length members of Lattice’s Scientific Advisory Board.

Pursuant to the Acquisition, on closing (the “Closing”), the shareholders of Lattice, as constituted on the date hereof, shall receive an aggregate of 34,000,000 Post-Acquisition Consolidated Blackstone securities (the “Consideration Securities”) in exchange for all of the currently outstanding Lattice Common Shares. The Consideration Securities shall be comprised of both Post-Acquisition Consolidation Blackstone Shares, and/or unlisted convertible, restricted voting shares (the “Restricted Shares”) to be issued to US persons. The holders of the New Shares will also receive 1,764,184 Post-Acquisition Consolidated Blackstone Shares.

In connection with the completion of the Acquisition, Blackstone intends to complete an equity financing (the “Blackstone Financing”) of up to 6,666,666 subscription receipts (each a“Financing Subscription Receipt”) convertible into units (each a “Unit”) at a price of CAD $0.30 per Financing Subscription Receipt for gross proceeds of up to CAD $2,000,000.

Each Unit will be comprised of one post-Acquisition Consolidation Blackstone Share and one-half of one share purchase warrant. Each whole share purchase warrant (a “Warrant”) will entitle the holder thereof to acquire one post-Acquisition Consolidation Blackstone Share at a price of CAD $0.60 per share, provided that, if at any time after the date that is four months after the issuance of the Subscription Receipts, the closing price of Blackstone’s common shares on the Exchange is more than CAD $0.75 for five consecutive trading days, Blackstone will have the right to accelerate the expiry of the Warrants.

Provided that minimum aggregate proceeds of CAD $1,100,000 (the “Minimum Financing”) have been raised under the Blackstone Financing, the Financing Settlement Subscription Receipts shall automatically convert into underlying securities of Blackstone upon the date that the Acquisition closes. If either: a) the Minimum Financing has not closed; or b) the Closing of the Acquisition does not occur on or before 5:00 pm (Vancouver Time) on the Escrow Deadline, the Financing Subscription Receipts shall automatically terminate and the subscription proceeds will be returned to the Financing Subscription Receipt holders.

It is anticipated that upon completion of the Business Combination, assuming completion of the Minimum Financing, it is anticipated that the Company will have an aggregate of 43,455,064 Post- Acquisition Consolidation Blackstone Shares (inclusive of Restricted Shares) and share purchase warrants to acquire an aggregate of 1,833,333 post-Acquisition Consolidation Blackstone Shares outstanding. Assuming completion of the full Blackstone Financing, it is anticipated that the Company will have an aggregate of 46,455,064 post-Acquisition Consolidation Blackstone Shares (inclusive of Restricted Shares) and share purchase warrants to acquire an aggregate of 3,333,333 post-Acquisition Consolidation Blackstone Shares outstanding. In addition, the Company will have outstanding convertible notes having an aggregate principal amount of USD $1,050,000, and commitments to issue up to 1,500,000 Post- Acquisition Consolidation Blackstone Shares outstanding.

Grenville Royalty Financing
The parties anticipate that, prior to the closing of the Acquisition, Grenville Strategic Royalty Corp. (“Grenville”) will advance USD $700,000 (the “Loan”) to Lattice pursuant to a secured convertible promissory note (the “Note”). Amounts owing to Grenville under the Note will bear interest at a rate of 12.5% per annum, which interest rate will increase to 18% per annum upon the occurrence of an event of default under the Note. The Note will be secured pursuant to a general security agreement, and will mature and become payable by Lattice on July 31, 2016 (the “Maturity Date”). Under the terms of the Note, the entire outstanding amount of the Loan and any accrued and unpaid interest thereon may, at Lattice’s election, be repaid in part or in full prior to the Maturity Date, without penalty. At Grenville’s election, on or after the Maturity date, the Loan, and interest due and payable thereon may be converted into a gross sales royalty (the “Royalty”) pursuant to a Amended and Restated Royalty Purchase Agreement (the“Royalty Agreement”) between Lattice and Grenville. Upon conversion, the Loan will form part of an aggregate US $3,700,000 advance (inclusive of the Loan) from Grenville under the Royalty Agreement. Subject to Exchange approval, in consideration of Grenville advancing the Loan, upon completion of the Acquisition Blackstone will issue Grenville 500,000 non-transferable Warrants, having the same terms as the Warrants issued under the Blackstone Financing.

About Lattice Biologics
Lattice is an emerging personalized/precision medicine leader in the field of cellular therapies and tissue engineering, with a focus on bone, skin, and cartilage regeneration. Lattice develops and manufactures biologic products to domestic and international markets.

Lattice’s products are used in a variety of applications, including:

  • Enhancing fusion in spine surgery
  • Enhancing breast reconstruction post mastectomy for breast cancer patients
  • Sports medicine indications, including ACL repair
  • Promotion of bone regeneration in foot and ankle surgery
  • Promotion of skull healing following neurosurgery
  • Enhancing wound repair in burn victims
  • Subchondral bone defect repair in knee and other joint surgeries

Lattice is partnered in developing new precision medicine technologies to address widespread unmet clinical needs in cancer treatment. These technologies will provide an invaluable diagnostic service by utilizing patients’ own prostate cancer tumor cells, amplifying them within a human Extracellular Cellular Matrix (ECM) and utilizing proprietary viability markers to test the efficacy of anti-cancer agents.

Lattice’s principal goal is to develop diagnostic treatments capable of assisting physicians in identifying the most effective treatment plans for individuals on a completely personalized basis.

Lattice’s headquarters, laboratory and manufacturing facilities are located in Scottsdale, Arizona. The facility includes ISO Class 1000 and ISO Class 100 clean rooms, and specialized equipment capable of crafting traditional allografts and precision specialty allografts for various clinical applications. The Lattice team includes highly trained tissue bank specialists, surgical technicians, certified sterile processing and distribution technicians, and CNC operators who maintain the highest standards of aseptic technique throughout each step of the manufacturing process. From donor acceptance to the final packaging and distribution of finished allografts, Lattice Biologics is committed to maintaining the highest standards of allograft quality, innovation, and customer satisfaction.

Lattice maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and internationally. This includes Certificates to Foreign Governments from the U.S. Food and Drug Administration (FDA) for 29 countries, which allow the export of bone, tendon, meniscus, ligament, soft tissue, and cartilage products outside of the U.S.

Further information on Lattice, including current financial statements, will be filed and posted on SEDAR upon the completion of disclosure document that will be prepared in accordance with Exchange requirements in connection with the Business Combination.

Board and Management
Following completion of the Business Combination, Lattice’s principal shareholders, namely Guy Cook, Chief Executive Officer and Cheryl Farmer, Chief Financial Officer, each of Phoenix, Arizona, will serve as Chief Executive Officer and Chief Financial Officer of the Company following completion of the Business Combination and Gregory Davis will serve as Chief Operating Officer. In addition, the Company’s board of directors will be reconstituted to will include Mr. Cook, Ms. Farmer, Cathy Thomas, CPA, of Danville, California, Mario Stifano, CPA of Toronto, Ontario, and Blackstone’s current CEO and Director, Donald McInnes of Vancouver, British Columbia.

Lattice’s Chief Executive Officer, Guy Cook, remarked, “This board of directors and management team offers true depth across an indispensable range of expertise, which allows us to draw on beneficial contacts in M&A, Canadian government resources, and U.S. regulatory authorities.

Through the collaboration and focus of such a dedicated group of professionals, we are highly confident that we will execute Lattice’s goal of making personalized medicine available in the near future.

We recognize this is an excellent time to bring our products and services to market and we have assembled excellent senior managers to accomplish our growth goals. I am incredibly fortunate to partner with each one of these talented individuals.”

Guy Cook, Chief Executive Officer

Mr. Cook brings more than 25 years of experience organizing, managing, and running all aspects of start- up and mid-size businesses. Prior to leading the asset purchase of International Biologics (renamed Lattice Biologics Inc.) in September of 2013, Guy founded and led Bacterin International Inc. (AMEX: BONE) from a small contract R&D start-up to a publicly traded multinational organization with sales in over 15 countries, multi-million dollar revenue, and more than 150 employees. Under his tenure, Bacterin revenues increased from USD $7.8mm in 2009 to USD $15.4mm in 2010 and USD $30.1mm in 2012, achieving record sales. Guy’s expertise includes over 18 years of experience in the tissue engineering field. He began his career as a confocal microscopist scientist, utilizing novel biomarkers at Montana State University’s Center for Biofilm Engineering, a National Science Foundation center of excellence.

Cheryl Farmer, CPA, Chief Financial Officer

Ms. Farmer joined Lattice in September of 2014 with 20 years of experience as a CFO and business development specialist. She started her career with Big 6 accounting firms and soon began generating valuable and far-reaching professional relationships across a diverse network of industries. Prior to joining Lattice, Cheryl served as a Global Business Executive for the Greater Phoenix Economic Council (GPEC), Arizona’s premier economic development organization for public entities and private investors. In this role, she was responsible for identifying and building strategic relationships throughout Western Canada with individual businesses, government agencies, economic development organizations, and foreign trade associations to support expansion into America with great success. Cheryl’s trademark entrepreneurial spirit, determination to improve advanced stem cell technology outcomes, and expertise in finance, system/process implementation, efficiency management, business development, and growth strategy are critical assets for Lattice’s continued growth.

Gregory Davis, Chief Operating Officer

Mr. Davis joined Lattice as it Executive Director in August of 2014. Greg is a dynamic, results-focused leader with over 25 years of experience in the tissue banking industry. Throughout his career, Greg has worked with several organ procurement organizations and has also led eye and tissue banks. His emphasis has been on operations management, strategic planning, and the development of highly effective work teams to maximize productivity, while maintaining continuous quality improvement and regulatory compliance. Greg also brings extensive experience in developing operational budgets and cost containment initiatives.

Cathy Thomas, Board Member

Ms. Thomas, CPA, is the Founder of Paraclae, LLC, a thriving finance and accounting consulting firm that recently merged with Sensiba San Filippo, one of the largest Northern California based CPA and business consulting firms. Cathy offers over 30 years of experience in business accounting services, including 15 years with Deloitte and Touche, five of which as a partner. Her major career accomplishments address the critical areas of complex public offerings, global corporate auditing, and Sarbanes Oxley Compliance. Most significantly, the latter of which encompasses compliance program development and implementation to protect shareholders and the general public from accounting errors and fraudulent enterprise practices and to improve the accuracy of corporate disclosures. In 2002, she started the consulting arm of Armanino Mc Kenna, LLP, as a member of the firm’s executive committee. Providing outsourced internal audit services specifically to address Sarbanes Oxley Compliance, outsourced finance, and accounting resources, the firm tripled in size across six years driven by the increase in revenue from the consulting practice. In 2008, Cathy founded Paraclae and was profitable year one.

Mario Stifano, Board Member

Mr. Stifano, CPA, is currently President and CEO of Cordoba Minerals Corp. (TSX Venture: CDB), a Toronto-based junior resource exploration company focused on the exploration and acquisition of copper and gold projects in Colombia. He joins the team as a key Board Member. Mario is a seasoned executive who brings strong capital markets experience to the Company and will be invaluable to the development and implementation of a successful mergers and acquisitions strategy. Throughout his career, he has raised approximately $700mm in equity and debt for technology and resource companies, including raising funds for start-ups and an IPO. Mario’s extensive mergers and acquisitions experience, including a $400 million acquisition while CFO of Lake Shore Gold (TSX: LSG), will greatly assist Lattice as the Company pursues its growth strategies.

Donald McInnes, Board Member

Mr. McInnes comes to Lattice as a natural resources entrepreneur who began funding ideas through Canadian capital markets in 1993. Donald is the founder and former CEO of Plutonic Power Corporation (TSX: PCC), a British Columbia-based renewable power development company with a broad portfolio of clean energy projects. In 2011, Plutonic merged with Magma Energy Corp. (TSX: MXY) to create Alterra Power Corp. (TSX: AXY), a diversified clean energy company with annual gross revenue in excess of $100mm. Mr. McInnes currently serves as Alterra’s Vice Chairman of the Board and Chair of the Health & Safety Committee. Donald is a frequent public speaker, passionate contributor to the debate on public policy, and involved member of the business community. He shares his talents with a variety of boards and associations, including serving as Past Chair of the Board of Prostate Cancer Canada, Past Chairman of the Clean Energy Association of British Columbia, and Past Governor of the British Columbia Business Council, among many others. In the past four years, he has been awarded an EY Entrepreneur of the Year Award in the Pacific Division Cleantech category, the Queen’s Diamond Jubilee Medal, and the Clean Energy Association of British Columbia’s Lifetime Achievement Award.

Closing of the Business Combination
The Business Combination will constitute a Reverse Takeover and Change of Business for the Company under the policies of the Exchange. It is anticipated that, upon completion of the Business Combination, the resulting issuer, will be listed as a Life Sciences Issuer on the Exchange. Closing of the Business Combination is subject to a number of conditions including completion of the Initial Consolidation, the Debt Settlement, the Acquisition Consolidation, the Minimum Financing, the Grenville Financing, completion of satisfactory due diligence, the entering into a definitive agreement in respect of the Business Combination, receipt of all required shareholder, regulatory and third party consents, including Exchange approval, and satisfaction of other customary closing conditions. The Business Combination cannot close until the required approvals are obtained. There can be no assurance that the Business Combination will be completed as proposed or at all.

In accordance with Exchange Policy 2.2, the Company has engaged Haywood Securities Inc. (“Haywood”) to act as sponsor in connection with the Business Combination. Under the terms of its engagement letter, the Company will pay Haywood a sponsorship fee and reimburse Haywood for reasonable expenses it incurs in connection with acting as Sponsor in connection with the Business Combination.

On Behalf of the Board of Directors of

BLACKSTONE VENTURES CORP.

Donald McInnes
Chief Executive Officer
Tel: (604) 678-6747
Email: dmcinnes@oxygencapitalcorp.com

Completion of the Business Combination is subject to a number of conditions, including Exchange acceptance and disinterested Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Information Circular to be prepared in connection with the transaction, any information released or received with respect to the Business Combination may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

United States Advisory
The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), have been offered and sold outside the United States to eligible investors pursuant to Regulation S promulgated under the U.S. Securities Act, and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the United States Securities Act) unless the securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available. Hedging transactions involving the securities must not be conducted unless in accordance with the U.S. Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.

July 27, 2015

Grenville Strategic Royalty Announces Successful Exit of Wmode Transaction

Grenville Strategic Royalty Announces Successful Exit of Wmode Transaction

TORONTO, Ontario, July 27, 2015 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced a successful exit of its investment in Wmode Inc. (“Wmode”), a Calgary-based technology and service company for the connected device, mobile and app economy, in accordance with the terms of the royalty agreement previously entered into between Grenville and Wmode. 
 
Grenville’s total return from its $1.0 million investment in Wmode in November, 2013 was $3.15 million, representing an IRR of approximately 104% and a 3.15x cash on cash return. 
 
“Wmode’s platform attracted new, high-quality investors with a great deal of expertise in identifying innovative technologies and excellent management teams, which Wmode clearly has,” said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “This transaction is a great example of our business model and the applicability of the royalty offering we’re pioneering by providing capital to companies that helps them achieve their growth objectives while allowing them to retain their independence and equity ownership, including enabling shareholders the ability to monetize the value in the business at the right time. It also demonstrates our deal structure allows us to balance expected SME portfolio investment losses and gains to protect our overall portfolio returns, an important attribute of our small business investment strategy. A 3x cash on cash return on our investment protects the portfolio for three equivalent investments. Proceeds from this sale will be used to strengthen our dividend capability, make new investments from our robust pipeline of prospects and follow on investments in select portfolio companies.”
 

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.
 

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
 
In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. 
 
Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. 
 
For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR atwww.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
 

For further information, please contact:
Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer Tel: (416) 777-0383

July 2, 2015

Grenville Completes Investment in TruGolf Inc.

Grenville Completes Investment in TruGolf Inc.

Toronto, Ontario, July 2, 2015/Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that it has contracted for a gross sales royalty from TruGolf Inc. (“TruGolf”) in exchange for an advance of $1,000,000 USD with an option, if agreed upon by both companies, to advance an additional $1,000,000 USD at a later date. In exchange for this advance, Grenville will receive a royalty based on TruGolf’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.
 
Based in Centreville, Utah, TruGolf is a virtual golf Content Solution Provider that offers cutting edge technology for Cloud-based, real-time gaming, game improvement and alternative golf formats. Originally a subsidiary of Access Software, TruGolf formally spun off from the company in 1999 when Access Software was purchased by Microsoft, to focus on a growing market interest in golf software development. For more than 20 years, TruGolf has been passionately committed to recreating the artistry of the game and currently offers the most prestigious course library with almost 100 courses available, over 25 of which that are ranked among the “Top 100 Courses in the World” by Golf Digest. TruGolf’s E6GOLF Software, a physics-based engine that replicates the precise behaviours of outdoor play, can be found in commercial and residential indoor golf simulators throughout the world.
 
TruGolf CEO, Chris Jones, says of the new investment, “TruGolf has been a leader in virtual golf simulation for many years, and with the release of E6 Cloud which will incorporate a number of exciting offerings never seen in the marketplace before, we believe the company stands poised to revolutionize not only the virtual golf simulation industry, but the sport as a whole.  It has been incredibly exciting to partner with Grenville to execute our vision on a large scale.” 
 
“This is an exciting investment. Being offered the opportunity to purchase a royalty in TruGolf, as Chris Jones, TruGolf’s CEO, and his uniquely assembled team of software programmers and avid golfers, expand into a cloud-enabled offering really is exceptional,” says Grenville President and CEO William (Bill) R. Tharp. “TruGolf is a profitable business pivoting to take full advantage of the shifting appetite in golf with a sophisticated offering where their software skills are perfectly positioned. From cloud-enabled tournament-play to personal swing-stats management, Chris has positioned TruGolf to be a clear trend-setter in the strengthening digital-golf marketplace.”   
 
In the second quarter of 2015, Grenville invested $7.94 million in capital, $4.36 million into new investments and $3.58 million into follow-on investments. To date, Grenville has completed approximately $37.79 million in royalty financings, building a diversified portfolio in Canada and the United States.
 
About TruGolf Inc.
Based in Centreville, Utah, TruGolf Inc. is a virtual golf Content Solution provider that offers cutting edge technology for Cloud-based, real-time gaming, game improvement and alternative formats. For more than 20 years, TruGolf has been passionately committed to recreating the artistry of the game and currently offers the most prestigious course library with almost 100 courses available, over 25 of which that are ranked among the “Top 100 Courses in the World” by Golf Digest. TruGolf’s E6GOLF Software, a physics-based engine that replicates the precise behaviours of outdoor play, can be found in commercial and residential indoor golf simulators throughout the world.
 
About Grenville
Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.
 
For more information, please contact:
Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383
 
Forward-Looking Information and Statements
 
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
 
In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. 
 
Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. 
 
For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

May 25, 2015

Grenville Completes Follow-on Investment in WATCHIT! Incorporated

Grenville Completes Follow-on Investment in WATCHIT! Incorporated

TORONTO, ONTARIO — (Marketwired) — 05/25/15 — Grenville Strategic Royalty Corp. (TSX VENTURE: GRC) (“Grenville”) is pleased to announce that it has advanced an additional $1,000,000 CAD to WATCH IT! Incorporated (“WATCH IT!”). This investment represents Grenville’s first follow-on investment in WATCH IT! and brings Grenville’s total investment in WATCH IT! to $2,000,000 CAD. In exchange for this advance, Grenville will receive a royalty based on WATCH IT!’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.

WATCH IT! is a the leading Canadian specialty retailer and franchisor that offers mid-priced, brand name watches, sunglasses, accessories, and watch repair services. WATCH IT! was founded in 1999 as a privately held, Alberta-based company that has grown to a mix of over 30 corporate and franchise boutique stores across Canada. Since its establishment, WATCH IT! has proven itself to be an innovative leader in its industry by offering a wide selection of high quality and affordable watches and sunglasses with a focus on exemplary customer service.

“Our initial investment into WATCH IT! allowed Darren and the management team to restructure their balance sheet and to better orient it for growth,” noted William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “With this follow-on investment, WATCH IT! plans to capitalize on an already strong 2015 in terms of revenue and same-store sales growth and continue to expand its brand as a leading mid-priced watches, sun glasses and peripheral-services retailer.”

“The investments from Grenville are strategic and will allow WATCH IT! to continue to execute on its business plan with financial strength,” stated Darren Bondar, President and CEO of WATCH IT! “Grenville has proven to be an excellent financial partner for us. The entire team was efficient, transparent and delivered on the agreements as promised.”

To date, Grenville has completed approximately $35.23 million in royalty financings, building a diversified portfolio in Canada and the United States.

About WATCH IT!

In November 1999, WATCH IT! launched its flagship boutique in Edmonton, Alberta offering innovative and fashionable timepieces and high-quality service. Today, WATCH IT! maintains its fundamental mandate while also adding sunglasses and accessories to the mix. Through strong partnerships with franchisees, WATCH IT! continues to flourish as one of Canada’s most well recognized boutique retailers in the Canadian retail industry. There are currently 30 WATCH IT! locations across Canada. For more information and a full retailer listing link to: www.watchit.ca

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:
Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position.

By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

May 11, 2015

Grenville Completes Follow-on Investment in Lattice Biologics

Grenville Completes Follow-on Investment in Lattice Biologics

Toronto, Ontario, May 11, 2015/Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that it has advanced an additional USD$1,000,000 to Lattice Biologics Inc. (“Lattice Biologics”). This investment represents Grenville’s first follow-on investment in Lattice Biologics and brings Grenville’s total investment in Lattice Biologics to USD$3,000,000. In exchange for this advance, Grenville will receive a royalty based on Lattice’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.

Lattice Biologics is a leader in the innovative medical field of allograft healthcare services, producing allograft products for use in various clinical applications. Known industry wide for their allograft quality, operational efficiency and customer satisfaction, Lattice operates from its state-of-the-art facility in Phoenix, Arizona. Lattice Biologics’ staff of highly trained tissue bank specialists, surgical technicians, certified sterile processing and distribution technicians and CNC operators maintain the highest standards of aseptic technique throughout each step of the manufacturing process, from donor acceptance to the final packaging and distribution of finished allografts.  
 
“Our follow-on investment will allow Guy Cook, CEO of Lattice, and his team to continue to diversify their allograft offering and grow their revenues,” noted William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “This investment will also help us to increase our defensive-sector portfolio exposure as well as strengthen our partnership with a fast-growing company with a top tier management team.”
 
“Lattice Biologics is a fast growing company in regenerative medicine, and we need supportive partners like Grenville to develop our next generation allografts,” stated Guy Cook, President and CEO of Lattice Biologics. “ Part of the use of proceeds will be to begin clinical testing, which we believe will be available in early 2016. The royalty based capital we need today is well below equity alternatives.”
 
To date, Grenville has completed approximately $34.23 million in royalty financings, building a diversified portfolio in Canada and the United States.
 
About Lattice Biologics
Lattice Biologics opened their doors in the spring of 2007 in Scottsdale, AZ as International Biologics, LLC. In the fall of 2013, International Biologics, LLC was purchased by Lattice Biologics, Inc.  The company’s facility include ISO Class 1000 and ISO Class 100 clean rooms, and specialized equipment capable of crafting traditional allografts and precision specialty allografts for various clinical applications. Lattice’s staff of highly trained tissue bank specialists, surgical technicians, certified sterile processing and distribution technicians, and CNC operators maintains the highest standards of aseptic technique throughout each step of the manufacturing process. From donor acceptance to the final packaging and distribution of finished allografts, Lattice Biologics is committed to maintaining the highest standards of allograft quality, innovation, and customer satisfaction.
 
About Grenville
Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

For more information, please contact:
Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383

Forward-Looking Information and Statements
 
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
 
In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.
 
Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.
 
For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

April 30, 2015

Grenville Completes Investment in Dove Cleaners

Grenville Completes Investment in Dove Cleaners

Toronto, Ontario, April 30, 2015/Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that it has contracted for a gross sales royalty from Dove Dry Cleaners (“Dove”) in exchange for an advance of $1,300,000 with an option, if agreed upon by both companies, to advance an additional $700,000 at a later date.  In exchange for this advance, Grenville will receive a royalty based on Dove’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.
 
Founded in Los Angeles in 1992 and currently focused on the Greater Toronto Area (“GTA”), Dove quickly became recognized by the community for superior service and craftsmanship and has since revolutionized the professional dry cleaning industry. As part of its commitment to excellence, Dove became the first and only dry cleaner with ISO 9001 Quality Registration Certification. The company has devoted itself to environmentally-friendly practices and innovation and is now Canada’s largest high-end dry cleaning company in both volume and size utilizing both the Dove Cleaners brand along with its mid-tier brand, Flair Cleaners.
 
Regarding the new investment, Dove CEO Danny Zarif says, “The success of our existing corporate and franchise locations across both our brands demonstrates the value of great customer service and provides an opportunity to expand to additional locations in the GTA and beyond. Grenville’s capital and hands-off approach is a perfect fit with our growth plans.”
 
“Danny and the team at Dove have built a robust business through exceptional, industry-leading customer service and meticulous focus on quality. We believe our royalty financing will enable significant growth at Dove through the acquisition and development of new stores,” comments Grenville President and CEO William (Bill) R. Tharp.
 
To date, Grenville has completed approximately $31.15 million in royalty financings, building a diversified portfolio in Canada and the United States.
 
About Dove Cleaners 
Since its inception in 1992, Dove Cleaners has been recognized by its valued clientele and industry peers for its unparalleled dedication to industry innovation, quality and service that far surpasses the standard. Dove offers a complete package of exclusive high-end dry cleaning and laundry services, with additional value-added options available for the discerning client. Using state-of-the-art processes, fabric care expertise and environmentally-sound practices allow Dove Cleaners to deliver on all its promises, without compromising quality. Dove Cleaners adheres to the strict compliance of ISO 9001 and is the first and only dry cleaning company in the world to do so.
 
About Grenville
Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.
 
For more information, please contact:
Grenville Strategic Royalty Corp.
William (Bill) R. Tharp
President and Chief Executive Officer
(416) 777-0383


Forward-Looking Information and Statements
 
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
 
In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. 
 
Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. 
 
For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR atwww.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.
 
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

April 21, 2015

Grenville Increases Available Funding to Bluedrop Performance Learning

Grenville Increases Available Funding to Bluedrop Performance Learning

TORONTO, ONTARIO–(Marketwired – April 21, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) is pleased to announce that it has increased the funding available to Bluedrop Performance Learning (TSX Venture: BPL) (“Bluedrop”) from $1,000,000 to up to $1,650,000, with the additional $650,000 available to be drawn by Bluedrop prior to December 31, 2015. In exchange for the amount advanced, Grenville will receive a royalty based on Bluedrop’s gross revenues within Grenville’s targeted 1% to 4% royalty range.

“The Bluedrop team worked hard through 2014 to integrate the company’s previous acquisitions, and to streamline its operations and working capital structure. This is the type of team and company where we are pleased to provide a follow-on commitment”, said Grenville CEO William (Bill) R. Tharp.

“Grenville provided Bluedrop with the financing flexibility we needed to meet our capital structure requirements and they were there to support our growth plans when we needed them”, said Bluedrop Executive Chairman Derrick Rowe. “Our experience with the team at Grenville is that they deliver on their commitments and do so in a timely manner”.

To date, Grenville has completed approximately $29.85 million in royalty financings, building a diversified portfolio across Canada and the United States.

About Bluedrop

Bluedrop Performance Learning is an innovator in workplace training for individuals, corporations, military personnel and the public sector. Launched in 2004, Bluedrop is transforming the workplace globally by designing, developing and delivering practical, actionable and affordable training content that improves individual and overall performance of organizations.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing public and private, small to medium sized enterprises operating across a broad range of industrial and technology sectors. Grenville has identified a large and underserviced finance market for well-managed companies generating up to $50 million in revenue, which face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. 
The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  •  

    Grenville Strategic Royalty Corp.
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
April 2, 2015

Grenville Completes Investment in Humble Abode Inc.

Grenville Completes Investment in Humble Abode Inc.

TORONTO, ONTARIO–(Marketwired – April 1, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) is pleased to announce that it has contracted for a gross sales royalty from Humble Abode, Inc. (“Humble Abode”) in exchange for an advance of $550,000 USD, with an option, if agreed upon by both companies, to advance an additional $450,000 USD. In exchange for this advance, Grenville will receive a royalty based on Humble Abode’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.

Humble Abode is a California-based online retailer of furniture and home furnishings founded by e-retail pioneer, James Wickersham. Since inception in 1999, Humble Abode has become one of the US’s fastest growing retailers in the online furniture segment, listed on the Inc. 5000 list of fastest growing private companies in the US every year from 2007 to 2014. Humble Abode curates designer quality furniture made in the US and around the world, operating out of their Santa Rosa office, warehouse and customer service center in Sonoma County, California.

“James and his team at Humble Abode are true innovators in the online furniture market. From a standing start in 1999 they’ve managed to be one of the U.S’s fastest growing private companies, developing strong relationships with their broad supplier base during that period”, said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “We’re confident the team can continue to grow and with a little outside capital believe the growth will be at an accelerated pace”.

“We are focused on expanding our designer quality furniture line and maintaining premium service”, said James Wickersham, founder, President and Chief Executive Officer of Humble Abode. “Our design-conscious customers want a curated product offering with online convenience, and 16 years refining our process of building trust and confidence with online shoppers has developed a scalable model for continued growth”.

To date, Grenville has completed approximately $29.85 million in royalty financings, building a diversified portfolio in Canada and the United States.

About Humble Abode

More than furniture, Humble Abode is selling a lifestyle. Founded 16 years ago as an online furniture retailer at www.humbleabode.com, Humble Abode is one of the fastest growing businesses in the USA 8 years in a row. Humble Abode is a curator of designer quality furniture bringing personalized service and premium home delivery to thousands of online shoppers throughout the US and Canada. The company is headquartered in Santa Rosa, California, the Sonoma County wine country north of San Francisco where nearly all operations are managed in-house including product sourcing, web operations, customer service center and west coast fulfillment center. Humble Abode® is a registered trademark of Humble Abode, Inc.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing public and private, small to medium sized enterprises operating across a broad range of industrial and technology sectors. Grenville has identified a large and underserviced finance market for well-managed companies generating up to $50 million in revenue, which face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position.

By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  •  

    Grenville Strategic Royalty Corp.
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
March 23, 2015

Grenville Completes Investment in Interiormark, LLC

Grenville Completes Investment in Interiormark, LLC

TORONTO, ONTARIO–(Marketwired – March 23, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) is pleased to announce that it has contracted for a gross sales royalty from Interiormark, LLC (“Interiormark”) in exchange for an advance of $1,750,000 USD, with an option, if agreed upon by both companies, to advance an additional $1,250,000 USD. In exchange for this advance, Grenville will receive a royalty based on Interiormark’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.

Interiormark is a leading online furniture retailer with a core focus on the home theatre seating market. Interiormark operates multiple niche websites offering a large selection of furniture products including; www.theaterseatstore.com, and www.sofasandsectionals.com. Interiormark was founded in 2007 by entrepreneurs and logistics industry veterans, Peter Goldstein and Bruce Tucker, and operates from facilities in Golden, Colorado and Fort Lauderdale, Florida.

“Online furniture sales continue to capture significant market share from traditional bricks and mortar furniture stores every year as consumers become more familiar with the benefits of online purchasing. At Grenville, we see this sector as a means of investing in the stable durable goods marketplace with the risk of sales declines during recession mitigated by market share growth,” said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “We are delighted to invest in Peter, Bruce and the team at Interiormark who, as early entrants in this market, have managed to bootstrap and materially expand their business to become a significant industry player. In our view, this entrepreneurial tenacity is a hallmark for a quality investment.”

“From day one, the Grenville team delivered on every commitment they made. Fast to act and true business professionals at heart, we could not have hoped to partner with a better company in this next exciting growth stage,” noted Bruce Tucker, co-founder and President of Interiormark. “This type of calibre is rare and we know this is just the beginning of a long and successful relationship.”

To date, Grenville has completed approximately $28.93 million in royalty financings, building a diversified portfolio in Canada and the United States.

About Interiormark

Founded in 2007, with offices in Colorado, Florida, and Texas, Interiormark is a leading e-commerce furniture retailer with a customer driven focus to include quality and innovative design. Interiormark has developed and maintains multiple niche websites offering a large selection of products and competitive pricing, and a best-in-market shopping experience through a scalable and user friendly shopping platform. Interiormark’s products span many furniture categories including living room, entertainment room, bed, and dining room. In early 2014, Interiormark launched its Octane Seating brand focused on the home theatre seating market.

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing public and private, small to medium sized enterprises operating across a broad range of industrial and technology sectors. Grenville has identified a large and underserviced finance market for well-managed companies generating up to $50 million in revenue, which face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position. 
By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  •  

    Grenville Strategic Royalty Corp.
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
  •  
February 27, 2015

Grenville Completes Investment in WATCH IT! Incorporated

Grenville Completes Investment in WATCH IT! Incorporated

TORONTO, ONTARIO–(Marketwired – Feb. 27, 2015) – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) is pleased to announce that it has contracted for a gross sales royalty from WATCH IT! Incorporated (“WATCH IT!”) in exchange for an advance of $1,000,000 CAD, with an option, if agreed upon by both companies, to advance an additional $1,000,000 CAD. In exchange for this advance, Grenville will receive a royalty based on WATCH IT!’s system-wide sales within Grenville’s average royalty rate of between 1% and 4%.

WATCH IT! is a the leading Canadian specialty retailer and franchisor that offers mid-priced, brand name watches, sunglasses, accessories, and watch repair services. WATCH IT! was founded in 1999 as a privately held, Alberta-based company that has grown to a mix of over 30 corporate and franchise boutique stores across Canada. Since its establishment, WATCH IT! has proven itself to be an innovative leader in the watch industry by offering a wide selection of high quality and affordable watches with a focus on exemplary customer service.

“We’re very excited about the opportunity to partner with WATCH IT! as they continue to build their footprint across Canada and further establish themselves as a leader in the Canadian watch retail industry”, said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “With our capital helping to strengthen WATCH IT!’s balance sheet, we are confident that the company can continue to grow aggressively. We are pleased to add another Canadian deal providing new exposure to retail and helping to further diversify the portfolio”.

“Grenville was the perfect fit for our company and will allow us to accelerate our business growth”, said Darren Bondar, President and Chief Executive Officer of WATCH IT!. “Beyond capital, we also feel that we have found an experienced partner that will be able to provide support, guidance and advice on future financial transactions”.

To date, Grenville has completed approximately $26.23 million in royalty financings, building a diversified portfolio in Canada and the United States.

About WATCH IT!

In November 1999, WATCH IT! launched its flagship boutique in Edmonton, Alberta offering innovative and fashionable timepieces and high-quality service. Today, WATCH IT! maintains its fundamental mandate while also adding sunglasses and accessories to the mix. Through strong partnerships with franchisees, WATCH IT! continues to flourish as one of Canada’s most well recognized boutique retailers in the Canadian retail industry. There are currently 30 WATCH IT! locations across Canada. For more information and a full retailer listing link to: www.watchit.ca

About Grenville

Grenville is a Toronto-based company that was formed to provide royalty-based finance solutions by acquiring revenue streams generated by growing industrial and technology businesses. Grenville has identified a large and underserviced finance market for companies generating up to $50 million in revenue, many of which are well managed and generating improving cash flow, but face difficult financing hurdles from traditional debt and equity markets. The non-dilutive royalty financing structure offered by Grenville can bridge the financing needs of these companies until traditional debt or equity is available to them on more attractive commercial terms. The application of Grenville’s royalty financing structure into sectors not traditionally serviced by royalty companies represents a new and innovative financing model – Capital Simplified – that has already attracted a considerable number of opportunities with attractive potential returns.

Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and statements are not representative of historical facts or information or current condition, but instead represent only Grenville’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Grenville’s control. Generally, such forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken, “will continue”, “will occur” or “will be achieved”. The forward-looking information contained herein may include, but is not limited to, information with respect to: prospective financial performance; expenses and operations; anticipated cash needs and need for additional financing; anticipated use of the net proceeds of the Offering; anticipated funding sources; future growth plans; royalty acquisition targets and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; business prospects and strategy; anticipated trends and challenges in Grenville’s business and the markets in which it operates; the amount and timing of the payment of dividends by Grenville; and Grenville’s financial position.

By identifying such information and statements in this manner, Grenville is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Grenville to be materially different from those expressed or implied by such information and statements. An investment in securities of Grenville is speculative and subject to a number of risks including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in Grenville; the volatility of Grenville’s share price; Grenville’s lack of operating history; Grenville’s ability to generate sufficient revenues; Grenville’s ability to manage future growth; the limited diversification in Grenville’s existing investments; ability to negotiate additional royalty purchases from new investee companies; dependence on the operations, assets and financial health of investee companies; limited ability to exercise control or direction over investee companies; potential defaults by investee companies and the unsecured nature of Grenville’s investments; Grenville’s ability to enforce on any default by an investee company; competition with other investment entities; tax matters; Grenville’s ability to pay dividends in the future and the timing and amount of those dividends; reliance on key personnel, particularly Grenville’s founders; dilution of shareholders’ interest through future financings; and general economic and political conditions. Although Grenville has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this document, Grenville has made certain assumptions. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Grenville’s business and its ability to identify and close new opportunities with new investees are material factors that Grenville considered when setting its strategic priorities and objectives, and its outlook for its business. Key assumptions include, but are not limited to: assumptions that the Canadian and U.S. economies will continue to grow moderately over the next 12 to 24 months; that interest rates will not increase dramatically over the next 12 to 24 months; that Grenville’s existing investees will continue to make royalty payments to Grenville as and when required; that the businesses of Grenville’s investees will not experience material negative results; that Grenville will continue to grow its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change significantly in Canada and the U.S.; that more small to medium private and public companies will continue to require access to alternative sources of capital that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms; and that Grenville will have sufficient free cash flow to pay dividends. Grenville has also assumed that access to the capital markets will remain relatively stable, that the capital markets will perform with normal levels of volatility and that the Canadian dollar will not have a high amount of volatility relative to the U.S. dollar. In determining expectations for economic growth, Grenville primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies.

Although Grenville believes that the assumptions and factors used in preparing, and the expectations contained in, the forward looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

For additional information with respect to these risks, uncertainties and assumptions, please refer to the “Risk Factors” section of Grenville’s annual information form dated February 11, 2015 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information and statements contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information and/or statement that is contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward looking information and statements attributable to Grenville or persons acting on its behalf is expressly qualified in its entirety by this notice.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

 

 

CONTACT INFORMATION

  •  

    Grenville Strategic Royalty Corp.
    William (Bill) R. Tharp
    President and Chief Executive Officer
    (416) 777-0383
February 18, 2015

Grenville Completes Follow-on Investment in Above Security

Grenville Completes Follow-on Investment in Above Security

Toronto, Ontario, February 18, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that is has advanced an additional CAD$500,000 to Sécurité Above Inc. (“Above Security”) in order for the company to complete its proposed acquisition of Seccuris Inc. (“Seccuris”). In exchange for the amount advanced to Above Security, Grenville will receive a royalty based on Above Security’s gross revenue within Grenville’s average royalty rate of between 1% and 4%.

Above Security is a privately held, Montreal, Quebec-based provider of managed security solutions with  over 15 years’ experience providing services to networks of over 250 private and government-owned organization in nearly 40 countries.  Above Security’s solutions deliver customized services for monitoring and protecting clients’ critical and sensitive IT assets 24/7. Above Security’s primary service offering is their Managed Security Services, which provides clients the benefits of third-party validation of their security position in real time with the added convenience of no training, configuration or maintenance, and no required capital expenditures or additional headcount.

On February 17, 2015, Above Security publicly announced the proposed acquisition of Seccuris, North America’s premier information assurance integrator. The acquisition of Seccuris creates the only Canadian pure-play Managed Security Service Provider with two Security Operations Centres in Canada. Seccuris was founded in 1999 in Winnipeg, Manitoba and has grown a global customer base from its seven offices in Canada and the United States. Today, Seccuris is the North American leader in premium Enterprise Security Architecture and Information Assurance Integration.

“The acquisition of Seccuris puts Above Security in a position to further its market leading position in the Canadian managed security services industry”, said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “We congratulate CEOs Ray Chehata and Michael Legary for joining forces in this rapidly evolving industry.  While this transaction will officially be recorded by Grenville as part of an existing investment, we see this as further diversification of our portfolio. We see this deal, denominated in Canadian dollars and fitting our “defensive” investment category as a security provider, as highly desirable from a diversification and foreign exchange balancing perspective. We intend to continue managing risk each month with this investment strategy in the future.”

“We are very excited to see the Seccuris acquisition come to fruition”, said Ray Chehata, President and Chief Executive Officer of Above Security. “Grenville was instrumental throughout the due diligence and acquisition process. It is extremely hard to find a financial partner that can follow you stride by stride during strategic growth and acquisition processes. Grenville has been exactly that partner and we can’t be more satisfied with this collaboration”.

To date, Grenville has completed approximately $25.23 million in royalty financings, building a diversified portfolio in Canada and the United States. 

About Above Security

Above Security is a privately held, Montreal, Quebec-based provider of managed security solutions with  over 15 years’ experience providing security services to networks of over 250 private and government-owned organization in nearly 40 countries.  Above Security’s solutions deliver customized services for monitoring and protecting clients’ critical and sensitive IT assets 24/7. Above Security was founded in 1999 and has representative offices in North America, Europe, and the Middle East.

About Seccuris

Seccuris is a Winnipeg, Manitoba-based cybersecurity consulting, risk management, and managed services firm. With offices in Winnipeg, Dallas, TX and key cities across North America, the company is a leader in the premium Enterprise Security Architecture and Information Assurance Integration in the finance, telecommunications, utilities, oil and gas, retail, government, and gaming industries. Seccuris was founded by visionary, Michael Legary, master security architect and winner of an Ernst and Young Entrepreneur of the Year Award.

About Grenville

Grenville is a Toronto-based company that w