Grenville Strategic Royalty Corp.
TSX VENTURE : GRC

Grenville Strategic Royalty Corp.

March 07, 2016 07:19 ET

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

TORONTO, ONTARIO--(Marketwired - March 7, 2016) - Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) ("Grenville") is pleased to announce that is has completed follow-on investments in Compression/Generation Services LLC ("CGS") and WATCH IT! Incorporated ("WATCH IT!").

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

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

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

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

About Grenville

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

Contact Information

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