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February 15, 2018

Grenville Strategic Royalty Announces 2017 Year End and Fourth Quarter Results

Grenville Strategic Royalty Announces 2017 Year End and Fourth Quarter Results

– Records Royalty Payment and Interest Income of $1.1 million and Free Cash Flow(1) of $701,000 in Q4 2017 –

TORONTO, Ontario, February 15, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three- and twelve-month periods ended December 31, 2017. Financial references are in Canadian dollars unless otherwise specified.

2017 Fourth Quarter Financial Highlights

  • Royalty Payment and Interest Income of $1,133,000
  • Adjusted EBITDA(1) of $65,000
  • Free Cash Flow(1) of $701,000

Financial Highlights

Canadian dollars Three months ended December 31, 2017 Three months ended December 31, 2016(2) Year ended December 31, 2017 Year ended December 31, 2016(2)
Revenues $          (2,870,933) $          (5,631,721) $          (9,603,221) $          (7,930,240)
Royalty Payment Income Interest and Fee Income Earned 1,130,658 1,586,259 4,704,198 8,284,265
Adjusted EBITDA(1)                     65,313 699,407 4,150,070                4,201,513
Free Cash Flow(1)                   701,050                (170,083)                4,438,293                (267,623)
(Loss)/Profit for the period             (3,339,862)             (5,140,581)           (11,351,423)           (10,655,454)
EBITDA/EBITDA (Loss)(1)             (4,053,740) (6,542,870) (13,525,112)           (12,500,834)
Basic Earnings/(Loss) per share                  (0.0288)                  (0.0484)                  (0.1068)                  (0.1007)
Diluted Earnings/(Loss) per share                  (0.0288)                  (0.0484)                  (0.1068)                  (0.1007)
Weighted basic average number of shares outstanding            106,317,656            106,287,720            106,312,767            105,770,194
Royalty agreements acquired and promissory notes receivable in period 829,665 706,425 5,048,298 6,171,924
  1. (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
    (2) For the three-month and year ended December 31, 2016 the company reported under results of operations dividend paid and payable during the period and dividend per share on an annualized basis. As the dividend was suspended in October 2016, this information was not included again as it would not provide a meaningful comparison.

 Revenues

Revenues were $(2,871,000) and $(9,603,000) for the three-month (Q4 2017) and twelve-month (FY 2017) periods ended December 31, 2017, respectively, compared to $(5,632,000) and $(7,930,000) 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 $3,869,000 compared to $7,237,000 for the same period in 2016. This non-cash amount relates to $3,438,000 for an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable, $730,000 for an unrealized loss in the change of the fair value of the shares held in Lattice Biologics Ltd., partially offset by $94,000 of unrealized foreign exchange gain.

Revenues in the annual period were negatively impacted by net non-cash items of $14,390,000 compared to $16,410,000 in 2016. This non-cash amount relates to $3,321,625 of an unrealized loss in writing-down the fair value of royalty agreements acquired and promissory notes receivable, $7,449,269 for investments written-off, $2,732,254 for the unrealized loss in the change in the fair value of the shares held in Lattice Biologics Ltd., $1,809,436 for unrealized foreign exchange loss offset by $922,284 for an unrealized gain from an investment derecognized. There was $3,000,000 of realized gain from contract buyouts recognized for 2017 because of the buyout of the Aquam investment compared to a gain of $99,000 for 2016.

Royalty Payment Income and Interest and Fee Income Earned

Royalty payment income plus interest and fee income earned was $1,131,000 and $4,704,000 for Q4 2017 and FY 2017, respectively, compared to $1,586,000 and $8,284,000 for the corresponding periods in 2016.

The change in the quarterly period was due to no royalty payment income recognized in Q4 2017 from four investees that have failed to pay royalties for at least three months compared to $190,000 of income recognized from this group in the same period last year and $330,000 of income recognized on the Aquam investment during the three-month period ended December 31, 2016 that was bought-out in April 2017.

The change in the annual period was primarily due to $3,300,000 for investments where more income was recognized in 2016 than in 2017 due to 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 $1,196,000 and $3,963,000 for Q4 2017 and FY 2017, respectively, compared to $1,020,000 and $4,610,000 for the corresponding periods in 2016. The change in the quarterly period is due to an increase of $198,000 in withholding tax expense offset by $30,000 lower staffing costs which reflects management’s initiatives to reduce costs. The improvement in the annual period is due to a $675,000 contract payment made to the former CEO in 2016, $245,000 in lower professional fees in 2017, $197,000 in lower salaries in 2017 and $148,000 in lower office and general expense in 2017. These improvements in the annual period were partially offset by $400,000 in harmonized sales tax expense recognized during the three-month period ended March 31, 2017 for overclaimed HST and an increase of $198,000 in withholding tax expense.

Adjusted EBITDA(1)

Adjusted EBITDA(1) was $65,000 and $4,150,000 for Q4 2017 and FY 2017, respectively, compared to $699,000 and $4,202,000 for the corresponding periods in 2016. The change in the quarterly period was primarily due to the decrease in royalty payment income and the higher withholding tax, each of which are described above.

Free Cash Flow(1)

Free Cash Flow(1) was $701,000 and $4,438,000 for Q4 2017 and FY 2017, respectively, compared to $(170,000) and $(268,000) for the corresponding periods in 2016. The improvement in the quarterly period was due to the $427,000 of income tax recoverable and $252,000 of prepaid royalty payments and interest income in Q4 2017. The change in the annual period was primarily due to the contract buyout of the Aquam investment that generated $3,533,000 in free cash flow(1) and the $427,000 of income tax recoverable.

Loss After Taxes

Loss after taxes was $3,340,000 and $11,351,000 for Q4 2017 and FY 2017, respectively, compared to $5,141,000 and $10,655,000 for the corresponding periods in 2016.

Assets

 

  As at December 31, 2017 As at December 31, 2016
Cash and cash equivalents $7,534,383 $6,202,412
Royalty agreements acquired, promissory notes and equity investments 22,194,107 37,562,379
Total assets 39,323,563               49,426,466

 

Grenville’s financial statements and management’s discussion and analysis for the three-month period and year ended December 31, 2017, will be filed today on SEDAR at www.sedar.com and will also 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, Friday, February 16, 2018. 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 cal. To access the replay, please dial (416) 621-4642 or (800) 585-8367 and enter access code 5494847. The replay recording will be available until 11:59 p.m. Eastern Time, February 23, 2018.

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, buyouts from contracts and equity returns. The flexible 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

February 13, 2018

Notice of Grenville Strategic Royalty’s Year End 2017 Financial Results Conference Call

Notice of Grenville Strategic Royalty’s Year End 2017 Financial Results Conference Call

– Financial results to be released after markets on Thursday, February 15, 2018 –

TORONTO, Ontario, February 9, 2018 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its year end 2017 financial results after the markets close on Thursday, February 15, 2018. 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, Friday, February 16, 2018, to review the results. A question and answer session will follow the corporate update.

 CONFERENCE CALL DETAILS

DATE:                                          Friday, February 16, 2018

TIME:                                           8:00 AM Eastern Time

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

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

REFERENCE NUMBER:            5494847

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, buyouts from contracts and equity returns. 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

 

January 22, 2018

Grenville Strategic Royalty Announces Equity Investment Increase to 13% in Cannabis Business – Inner Spirit

Grenville Strategic Royalty Announces Equity Investment Increase to 13% in Cannabis Business – Inner Spirit

– Grenville’s $1 million investment in WatchIt! converted to 10 million shares of Inner Spirit –

TORONTO, Ontario, January 22, 2018 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it has reached an agreement with Inner Spirit Holding Ltd., to convert Grenville’s $1 million royalty agreement in Watch It! Consolidated Ltd. (“Watch It!”) to 10 million shares in Inner Spirit Holding Ltd. (“Inner Spirit”) at a price of 10 cents per share. Watch It! is a wholly-owned subsidiary of Inner Spirit and is current in all royalty payment due to Grenville under the royalty agreement. With the conversion, Grenville now holds 14,455,000 shares or approximately 13 percent of the total issued and outstanding common shares of Inner Spirit. The conversion provides Grenville exposure to Inner Spirit’s recreational cannabis business and its retail growth strategy.

Inner Spirit is the parent company of Spirit Leaf Inc. (“Spirit Leaf”) which aims to be a market leader in the franchising of retail cannabis dispensaries in jurisdictions in Canada where private distribution is legalized. Spirit Leaf has entered into 95 franchise agreements for proposed retail locations in Canada.

 “This transaction demonstrates another lever in our toolbox to optimize returns, by blending royalties with the upside of equity returns. Inner Spirit has constructed an impressive retail footprint in preparation for the launch of the recreational cannabis market in Canada,” said Steve Parry, Chief Executive Officer of Grenville. “In select cases where we believe the equity gains can dramatically outperform the royalty returns, like the situation that arose with the integration of Spirit Leaf and Watch It!, a conversion to equity in a broader based business like Inner Spirt makes sense for our shareholders. We look forward to continuing to support Inner Spirit management as they execute their growth strategy.”

 “The transaction demonstrates the flexibility of Grenville’s model to support entrepreneurs through the different phases of their growth. We are very excited about our next phase of growth at Inner Spirit as we prepare for the launch of the Canadian recreation cannabis market this year,” said Darren Bondar, Chief Executive Officer of Inner Spirit. “With 95 executed retail agreements and the recent strategic supply relationship announced earlier this month, we are well positioned to be a leading Canadian retail provider of cannabis in markets where private distribution is legal. We look forward to drawing on Grenville’s experience and expertise as we execute our growth strategy.”

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, buyouts from contracts and equity returns. 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.

 About Inner Spirit

Inner Spirit is a specialty retailer and franchise company that is applying its management’s significant franchise experience and model to the recreational cannabis market. The first and only Canadian cannabis focused company to be granted Canadian Franchise Association membership to date, Inner Spirit intends to establish a chain of recreational cannabis dispensaries under its Spiritleaf brand, with the vision of becoming the leading private recreational cannabis retail dispensary chain in Canada. Spiritleaf aims to be the most knowledgeable and trusted source of recreational cannabis, offering a premium consumer experience with high-quality product brands.

 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

 

 

January 3, 2018

Grenville Strategic Royalty Announces Investment in Solar Brokers

Grenville Strategic Royalty Announces Investment in Solar Brokers

TORONTO, Ontario, January 2, 2018 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) today announced that it has signed an agreement to provide growth capital to Solar Brokers Canada Corp. (“Solar Brokers”) and its affiliate Green Lion Eco Group Corp. (“Green Lion”).

Solar Brokers, based in Toronto, Ontario, is one of Canada’s largest solar sales organizations. Solar Brokers has brokered the sale of over 30 megawatts of solar to homeowners in Ontario since 2012, selling through online and premium retail channel partners. Solar Brokers is redefining how Canadian consumers adopt residential solar. Green Lion is a project management and quality assurance firm that ensures that every Solar Brokers project is built to industry-leading standards.

Grenville CEO Steve Parry commented: “Our team has a profitable track record of investing in consumer-facing energy sales companies, with over USD $100M of exit value yielded from investments made prior to the inception of Grenville.  We can identify the winning teams and business models.  Grenville is thrilled to have the opportunity to fuel Solar Brokers’ continued expansion with our capital and relationships.”

Solar Brokers CEO J.C. Awwad commented: “Grenville’s unique investment model is a good alternative to equity investment, and is very attractive to fast-growth entrepreneurial companies like ours. This initial investment capital will be used for more rapid expansion across Canada in the first quarter of 2018. We look forward to a mutually beneficial partnership.”

Grenville’s initial investment into Solar Brokers, in the amount of CAD $1,075,000, is through an expandable capital facility. Similar to Grenville’s other royalty agreements, the financial terms include an indefinite term, monthly payments, and a buyout provision.

About Solar Brokers

Solar Brokers is one of the largest solar providers in Canada and the first residential solar brokerage in the country. Since its founding in 2012, the company has experienced revenue growth of over 8900%. To date the company has brokered over 30 megawatts of residential solar in Ontario. Based in Toronto, Solar Brokers and its affiliate companies oversee a staff of over 100 industry-leading professionals. Through its proprietary tools, including state-of-the art project and customer relationship management software, and lead-generating interactive kiosks, Solar Brokers is redefining how consumers adopt residential solar.

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 15, 2017

Grenville Strategic Royalty Provides Additional Detail on Boardwalktech Transaction

Grenville Strategic Royalty Provides Additional Detail on Boardwalktech Transaction

TORONTO, Dec. 15, 2017 (GLOBE NEWSWIRE) — Further to the release earlier today, Grenville Strategic Royalty Corp. (TSXV:GRC) (“Grenville” or the “Company”) provides additional commentary that the investment in Boardwalktech, Inc. (“Boardwalktech”) was made with similar financial terms to our other royalty agreements with monthly payments and a buyout provision. The transaction was led by SQN Venture Partners (“SQN”), and Grenville was a participant in the transaction following SQN as lead investor.

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

Grenville Strategic Royalty Announces Investment in Boardwalktech, Pioneer in Enterprise Blockchain

Grenville Strategic Royalty Announces Investment in Boardwalktech, Pioneer in Enterprise Blockchain

TORONTO, Ontario, December 15, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced that it has signed an agreement, alongside SQN Venture Partners (“SQN”), to provide growth capital to Boardwalktech, Inc. (“Boardwalktech”).

Based in Cupertino, California, Boardwalktech has developed a patented digital ledger technology that allows for multi-party collaboration and verification on a trusted, shared, secure, and private information cloud. Their data management platform allows rapid blockchain application development on any platform or user interface, supporting both on/off-chain “smart contract” business logic and blockchain data. The Boardwalktech Application Engine (BAE) Platform acts as the data management engine enabling enterprises to build enterprise-quality applications.

Grenville CEO Steve Parry commented: “Our Boardwalktech investment demonstrates the value of Grenville’s business model for evaluating and participating in emerging exponential markets like blockchain. Boardwalktech is a pioneer in digital ledger technology, with patents, Fortune 100 customers and significant revenues based on delivering applications that enable the blockchain environment to generate tangible return on investment to customers in mission-critical applications.  Our royalty product is an excellent match for the rapid revenue growth that these companies experience.  We have an established pipeline of new deals in the blockchain space and are devoting additional resources to sourcing more.  We hope that Boardwalktech will be the first of many in this space.”

Boardwalktech CEO Andrew Duncan commented: “We are very pleased to include Grenville as a financial partner alongside of SQN. These two firms have provided our founding investors the ability to delay significant dilution of ownership while we developed our customer base. Now, with the explosion of interest in the blockchain environment, we are in an ideal place to realize significant shareholder value.”

As part of the growth capital facility, Grenville invested US $425,000.

About Boardwalktech, Inc.

Based in Cupertino, California, Boardwalktech has developed a patented digital ledger technology that allows for multi-party collaboration and verification on a trusted, shared, secure, and private information cloud. Their data management platform allows rapid blockchain application development on any platform or user interface, supporting both on/off-chain “smart contract” business logic and blockchain data. Founded in 2005, Boardwalktech is primarily employee-owned.

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 8, 2017

Grenville Strategic Royalty Announces Acquisition of Portfolio Holding Frequentz Inc.

Grenville Strategic Royalty Announces Acquisition of Portfolio Holding Frequentz Inc.

TORONTO, Ontario, December 7, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) today announced that rfXcel, a provider of supply chain track and trace solutions for the pharmaceutical industry has acquired the assets of Frequentz, Inc. (“Frequentz”), a leading player in life science and food traceability. Terms of this transaction can be found in the following press release: https://www.prnewswire.com/news-releases/rfxcel-acquires-frequentz-assets-300566623.html.

As previously announced on June 21, 2017 Grenville entered into a royalty purchase agreement with Frequentz, to provide USD$500,000 in growth capital.  Coincident with the close, Grenville purchased USD$350,000 of senior secured Frequentz debt for additional royalty payments, bringing Grenville’s total investment to USD$850,000.

At closing, Grenville received an aggregate payment equal to one year of royalty payments. Following completion of the acquisition, the royalty agreement between Grenville and Frequentz will remain in place.

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.

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, 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.

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

November 21, 2017

Grenville Strategic Royalty Announces 2017 Third Quarter Results

Grenville Strategic Royalty Announces 2017 Third Quarter Results

– Records Royalty Payment and Interest Income of $1.2 million in Q3 2017 –

TORONTO, Ontario, November 21, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced its financial and operating results for the three- and nine-month periods ended September 30, 2017. Financial references are in Canadian dollars unless otherwise specified.

2017 Third Quarter Financial Highlights

  • Royalty Payment and Interest Income of $1,187,000
  • Adjusted EBITDA(1) of $556,000
  • Free Cash Flow(1) of $166,000

“For the fifth time in the last six quarters we generated positive free cash flow in the quarter. The core of the portfolio continues to perform, which together with the cost discipline we’ve implemented, provide a stable foundation for future growth,” said Steve Parry, Chief Executive Officer of Grenville. “At present, the markets are valuing the business at 33% of book value despite the portfolio generating positive free cash flow, the potential for additional contract buyouts and the improved portfolio performance. The pipeline is as strong as it’s ever been and we screened more opportunities in the quarter than ever before. While the timing of new investments has been lumpy recently, we remain confident in our ability to access high-quality opportunities based on the existing pipeline. In the interim, we are building our cash position – which is ready to deploy – and we are being vigilant as we select the best opportunities for our next round of investments.”

Financial Highlights

Canadian dollars Three months ended September 30, 2017 Three months ended September 30, 2016
Revenues $          (1,222,621) $             (854,503)
Royalty Payment Income and Interest and Fee Income Earned

       1,193,359

    2,044,058

Adjusted EBITDA(1)                   555,774                1,376,396
Free Cash Flow(1)                   166,068                   163,992
(Loss)/Profit for the period             (1,763,068)             (1,690,843)
Basic Earnings/(Loss) per share                  (0.0166)                  (0.0159)
Diluted Earnings/(Loss) per share                  (0.0166)                  (0.0159)
Weighted basic average number of shares outstanding            106,317,656            105,596,427
Royalty agreements acquired in period

           425,000

             370,797

(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 $(1,223,000) and $(6,732,000) for the three-month (Q3 2017) and nine-month (YTD 2017) periods ended September 30, 2017, respectively, compared to $(855,000) and $(2,397,000) 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 $2,427,000 compared to $3,014,000 for the same period in 2016. This non-cash amount relates to $1,382,000 for an unrealized loss from the change in fair value of royalty agreements acquired and promissory notes receivable, $365,000 for an unrealized loss in the change of the fair value of the shares held in Lattice Biologics Ltd. and $680,000 of unrealized foreign exchange loss.

Royalty Payment Income and Interest and Fee Income Earned

Royalty payment income plus interest and fee income earned was $1,193,000 and $3,574,000 for Q3 2017 and YTD 2017, respectively, compared to $2,044,000 and $6,698,000 for the corresponding periods in 2016. The change in the quarterly period was due to no royalty payment income recognized in Q3 2017 from seven investees that have failed to pay royalties for at least three months compared to $810,000 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 $713,000 and $2,767,000 for Q3 2017 and YTD 2017, respectively, compared to $876,000 and $3,591,000 for the corresponding periods in 2016. The $163,000, or 19%, decrease in the quarter reflects management’s initiatives to reduce staffing costs, travel and professional fees.

Adjusted EBITDA(1)

Adjusted EBITDA(1) was $556,000 and $4,085,000 for Q3 2017 and YTD 2017, respectively, compared to $1,376,000 and $3,471,000 for the corresponding periods in 2016. The change in the quarterly period is primarily due to the decrease in royalty payment income as described above.

Free Cash Flow(1)

Free Cash Flow(1) was $166,000 and $3,737,000 for Q3 2017 and YTD, respectively, compared to $164,000 and $(98,000) for the corresponding periods in 2016.

Loss After Taxes

Loss after taxes was $1,763,000 and $8,012,000 for Q3 2017 and YTD 2017, respectively, compared to $1,691,000 and $5,515,000 for the corresponding periods in 2016.

Assets

   As at September 30, 2017  As at December 31, 2016
Cash and cash equivalents $8,611,474 $6,202,412
Royalty agreements acquired, promissory notes and equity investments 25,273,960 37,562,379
Total assets 42,630,590  49,426,466

 

Outlook

The Company has invested over $68 million of capital in 39 portfolio companies, generated Adjusted EBITDA(1) of $20.1 million since inception and generated free cash flow(1) of $11.8 million since July 2014. The core of the portfolio has reached a scale at which it is generating positive Adjusted EBITDA(1) and Free Cash Flow(1).

Grenville’s royalty agreements with its portfolio companies generated Adjusted EBITDA(1) to the Company of approximately $0.6 million for the three-month period ended September 30, 2017. As of November 21, 2017, the Company estimates that for the month of October 2017, royalty payment income, interest and fee income will be $400,000 and Adjusted EBITDA will be approximately $200,000.

Based on information available as of November 21, 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 and depreciation) for Q3 2017, were approximately $220,000 per month and are estimated to be in the range of $2.4 million to $3.0 million on an annualized basis in Q4 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 September 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, November 22, 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 5090059. The replay recording will be available until 11:59 p.m. Eastern Time, November 29, 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

November 14, 2017

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

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

– Financial results to be released after markets on Tuesday, November 21, 2017 –

TORONTO, Ontario, November 14, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced it will release its third quarter 2017 financial results after the markets close on Tuesday, November 21, 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, November 22, 2017, to review the results. A question and answer session will follow the corporate update.

CONFERENCE CALL DETAILS DATE: Wednesday, November 22, 2017

TIME: 8:00 AM Eastern Time

DIAL IN NUMBER: 647-427-3299 or 866-521-4909

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

REFERENCE NUMBER: 5090059

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

 

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