Annoucements - All News

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

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

February 13, 2017

Grenville Strategic Royalty Announces 2016 Fourth Quarter and Year End Results

Grenville Strategic Royalty Announces 2016 Fourth Quarter and Year End Results

– Records Royalty Payment Income of $1.6 million in Q4 2016 and $8.0 million in FY 2016 –

TORONTO, Ontario, February 13, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three-month (“Q4 2016”) and twelve-month (“FY 2016”) periods ended December 31, 2016. Financial references are in Canadian dollars unless otherwise specified.

2016 Fourth Quarter Financial Highlights

  • Royalty Payment Income of $1,573,000
  • Adjusted EBITDA(1) of $700,000
  • Free Cash Flow(1) of $(170,000)

2016 Fiscal Year Financial Highlights

  • Royalty Payment Income of $8,003,000
  • Adjusted EBITDA(1) of $4,202,000
  • Free Cash Flow(1) of $(267,000)

“The portfolio continues to generate strong royalty income on a consistent basis. The operating cost reductions we implemented earlier this year and the conservative approach we continue to ascribe to both Contract Buyouts and underperforming investments in the portfolio position us to exit 2017 stronger than 2016,” said Steve Parry, Chief Executive Officer of Grenville. “Our pipeline is stronger than ever as it relates to both the volume and the quality of the opportunities we are reviewing. In our review, we place an increased emphasis on companies with strong growth, recurring/predictable revenues and the ability to raise capital from multiple sources. We intend to return to a more consistent pace of investment in 2017 with the support of our two joint venture partners who have already co-invested in three opportunities with us since October.”

Financial Highlights

Canadian dollars Three months ended  December 31, 2016   Three months ended December 31, 2015   Twelve months ended December 31, 2016   Twelve months ended December 31, 2015
Revenues $ (5,631,721) $ 964,798 $ (7,930,240) $ 12,127,179
Royalty payment income and Interest Income Earned 1,573,171 2,481,828 8,271,177 8,445,246
Adjusted EBITDA(1) 699,407 4,221,253 4,201,513 10,760,875
Free cash flow(1) (170,083) 3,739,658 (267,623) 7,349,954
(Loss)/Profit for the period (5,140,581) (671,616) (10,655,454) 5,167,286
Basic Earnings/(Loss) per share (0.0484) (0.0067) (0.1007) 0.0578
Diluted Earnings/(Loss) per share (0.0484) (0.0067) (0.1007) 0.0535
Royalty agreements acquired in period 706,425 14,411,025 6,880,150 32,541,05

 

(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.

Share Option Cancellation

Mr. Parry has elected to cancel 1,000,000 options granted to him and return them to the corporate option pool. The options were granted to him as part of his compensation program as Executive Chairman.

“The share option program is an important component of our ability to attract and retain talented investment professionals. Replenishing the pool with these cancelled options provides us with greater flexibility to continue to build and incentivize the great team we have assembled at Grenville – which is the key asset we possess to drive our growth strategy,” said Mr. Parry.

Revenues

Revenues were $(5,632,000) and $(7,930,000) for Q4 2016 and FY 2016, respectively, compared to $965,000 and $12,127,000 for the corresponding periods in 2015. With the adoption of IFRS 9, certain non-cash items are recognized in revenue. Revenues in Q4 2016 were impacted by net non-cash losses of $7,807,000 related to an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable which were partially offset by an unrealized foreign exchange gain of $570,000. The change in revenues was also impact by $2,353,000 from Contract Buyouts in the three-month period ended December 31, 2015 (“Q4 2015”), while there were no realized gains from Contract Buyouts in Q4 2016. Revenues in the FY 2016 period were impacted by net non-cash losses of $16,410,000 compared to $2,224,000 in 2015. The change in net non-cash losses relate to $13,056,000 for an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable, $1,841,000 for realized losses from investments written off and $1,513,000 of unrealized foreign exchange loss. The realized loss from investments written off relates to two investments where in previous reporting periods the fair value of the investment was recorded as nil.

Royalty Payment Income and Interest Income Earned

Royalty payment income plus interest income earned was $1,573,000 and $8,271,000 for Q4 2016 and FY 2016, respectively, compared to $2,482,000 and $8,445,000 in the corresponding periods in 2015. The change in the quarterly period is primarily due to approximately $850,000 of royalty payment income that was not recognized for ten investments which have not paid a royalty for at least three months. 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 $1,020,000 and $4,610,000 for Q4 2016 and FY 2016, respectively, compared with $1,469,000 and $3,383,000 for the corresponding periods in 2015. The change in the quarterly period is primarily due to $475,000 of an employee bonus expense for the Q4 2015 period, lower professional fees in Q4 2016 offset by $156,000 expensed for withholding tax in Q4 2016. The change in the fiscal year period is due primarily to costs related to the departure of the former CEO, the cost of new employees, including a new managing director and investment team member hired in 2015, a salary increase starting January 1, 2016 following an executive compensation review, and a one-time consultancy expense in 2016 for the IFRS 9 conversion and portfolio fair value valuation reports.

Adjusted EBITDA(1)

Adjusted EBITDA(1) was $699,000 and $4,202,000 for Q4 2016 and FY 2016, respectively, compared to $4,221,000 and $10,761,000 for the corresponding periods in 2015. The change in the quarterly period was primarily due to a lower realized gain on contract buyouts of $2,353,000 and lower royalty income of $786,000.  The change in the fiscal year period was due to a lower realized gain on contract buyouts of $4,451,000, as well as a reduction of $710,000 in realized foreign exchange gains and $884,000 of higher operating costs (excluding share-based compensation).

Free Cash Flow(1)

Free cash flow(1) was $(170,000) and $(268,000) for Q4 2016 and FY 2016, respectively, compared to $3,740,000 and $7,350,000 for the corresponding periods in 2015. The changes in free cash flow(1) were primarily due to realized gains of $1,730,000 ($2,353,000 before taxes)] and $3,344,000 ($4,550,000 before taxes) for Contract Buyouts generated during Q4 2015 and FY 2015, respectively. Also, impacting the FY 2016 figure were short-term timing differences in expenses at the end of December 2015 of $1,112,000 that were paid in 2016, as well as the $675,000 contract payment that was paid to the former CEO and the $156,000 withholding tax that needed to be expensed.

Income (Loss) After Taxes

Income (Loss) after taxes was $(5,141,000) and $(10,655,000) for Q4 2016 and FY 2016, respectively, compared to $(672,000) and $5,167,000 in the corresponding periods in 2015. The changes in each period were due to the aforementioned changes in the fair value of royalty agreements acquired and promissory notes receivable, the decrease in royalty payment income, and a decrease in Contract Buyouts. In addition, the fiscal year period was also impacted by an increase in unrealized foreign exchange losses and higher operating costs.

Assets

 

 As at December 31, 2016

 As at December 31, 2015

Cash and cash equivalents

$6,202,412

$16,897,331

Royalty agreements acquired and promissory notes

37,562,379

46,449,356

Total assets

             49,426,466

              64,544,855

Average Royalty Payment per Million Invested(1)

The average royalty payment per million invested(1) for the month of December 2016 was $116,000. The rolling twelve-month average royalty payment per million invested(1) was $172,000 for the period ended December 31, 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/1085736_graph.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 December 31, 2016, 57% of the investment portfolio has generated returns equal to or in excess of Grenville’s pricing level of 25%. As of December 31, 2016, as a percentage of total portfolio value the Bought Out category was 1% and the Above Target category was 18%. The On Target category was 38% and the Off Target category was 16% – which includes $2,860,000 which was moved into the category during the quarter. The Loss category accounted for 14% of the portfolio value including $4,260,000 moved into this category during the quarter.

An outline of the portfolio for the periods ended December 31, 2016 and September 30, 2016, can be viewed by visiting the following link*: http://media3.marketwire.com/docs/1085736_graph.pdf

Outlook

The Company has invested more than $64 million of capital in 33 portfolio companies, generated Adjusted EBITDA(1)  of $16.0 million since inception in July 2013 and has generated free cash flow(1) of $8.0 million. 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 $0.7 million for the three-month period ended December 31, 2016 and $4.2 million for the twelve-month period ended December 31, 2016. As of February 13, 2017, the Company estimates the royalty payment income and interest earned for January 2017 will be $0.5 million which while lower than the run rate for twelve-month period end December 31, 2016, is still sufficient to generate an estimated $50,000 thousand of free cash flow(1) and $0.25 million of Adjusted EBITDA(1)  in January.

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 February 13, 2017, management believes that there are some investments in the Above Target category that represent Contract Buyout opportunities in the next few quarters. There is no change in the guidance provided in the MD&A as of November 15, 2016, and the Company believes that the potential gross amount that could be received from these Contract Buyouts is up to $9.0 million with $5.0 million possibly received in the three-months ended March 31, 2017 and the balance spread over the remaining quarters of 2017. The Company believes this would significantly increase Adjusted EBITDA(1) up to $5.0 million and Free Cash Flow(1) up to $4.1 million. Including the cash balance as of February 13, 2017, of $6.4 million, the available capital for investment in new companies would be up to $14.5 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 the withholding tax expensed) for Q4 2016, were approximately $0.24 million per month and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q1 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 and twelve-month periods ended December 31, 2016 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, Monday, February 13, 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 67382647. The replay recording will be available until 11:59 p.m. Eastern Time, February 20, 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 Company’s ability to pay dividends in the future and the amount and timing of those dividends by the Company; the Company’s ability to successfully manage its joint venture relationships; 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 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”); 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; 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.:

Steven Parry

Chief Executive Officer

Tel: (416) 777-0383

February 7, 2017

Notice of Grenville Strategic Royalty’s Year End 2016 Financial Results Conference Call

Notice of Grenville Strategic Royalty’s Year End 2016 Financial Results Conference Call

– Financial results to be released after markets on Monday, February 13, 2017 –

TORONTO, Ontario, February 7, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its year end 2016 financial results after markets close on Monday, February 13, 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, Tuesday, February 14, 2017, to review the results. A question and answer session will follow the corporate update.

CONFERENCE CALL DETAILS

DATE:                                          Tuesday, February 14, 2017

TIME:                                           8:00 AM Eastern Time

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

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

REFERENCE NUMBER:               67382647

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

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