Grenville Strategic Royalty Corp.

Grenville Strategic Royalty Corp.

July 02, 2015 17:00 ET

Grenville Completes Investment in TruGolf Inc.

TORONTO, ONTARIO--(Marketwired - July 2, 2015) - Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) ("Grenville") is pleased to announce that it has contracted for a gross sales royalty from TruGolf Inc. ("TruGolf") in exchange for an advance of $1,000,000 USD with an option, if agreed upon by both companies, to advance an additional $1,000,000 USD at a later date. In exchange for this advance, Grenville will receive a royalty based on TruGolf's gross revenue within Grenville's average royalty rate of between 1% and 4%.

Based in Centreville, Utah, TruGolf is a virtual golf Content Solution Provider that offers cutting edge technology for Cloud-based, real-time gaming, game improvement and alternative golf formats. Originally a subsidiary of Access Software, TruGolf formally spun off from the company in 1999 when Access Software was purchased by Microsoft, to focus on a growing market interest in golf software development. For more than 20 years, TruGolf has been passionately committed to recreating the artistry of the game and currently offers the most prestigious course library with almost 100 courses available, over 25 of which that are ranked among the "Top 100 Courses in the World" by Golf Digest. TruGolf's E6GOLF Software, a physics-based engine that replicates the precise behaviours of outdoor play, can be found in commercial and residential indoor golf simulators throughout the world.

TruGolf CEO, Chris Jones, says of the new investment, "TruGolf has been a leader in virtual golf simulation for many years, and with the release of E6 Cloud which will incorporate a number of exciting offerings never seen in the marketplace before. We believe the company stands poised to revolutionize not only the virtual golf simulation industry, but the sport as a whole. It has been incredibly exciting to partner with Grenville to execute our vision on a large scale."

"This is an exciting investment. Being offered the opportunity to purchase a royalty in TruGolf, as Chris Jones, TruGolf's CEO, and his uniquely assembled team of software programmers and avid golfers, expand into a cloud-enabled offering really is exceptional," says Grenville President and CEO William (Bill) R. Tharp. "TruGolf is a profitable business pivoting to take full advantage of the shifting appetite in golf with a sophisticated offering where their software skills are perfectly positioned. From cloud-enabled tournament-play to personal swing-stats management, Chris has positioned TruGolf to be a clear trend-setter in the strengthening digital-golf marketplace."

In the second quarter of 2015, Grenville invested $7.94 million in capital, $4.36 million into new investments and $3.58 million into follow-on investments. To date, Grenville has completed approximately $37.79 million in royalty financings, building a diversified portfolio in Canada and the United States.

About TruGolf Inc.

Based in Centreville, Utah, TruGolf Inc. is a virtual golf Content Solution provider that offers cutting edge technology for Cloud-based, real-time gaming, game improvement and alternative formats. For more than 20 years, TruGolf has been passionately committed to recreating the artistry of the game and currently offers the most prestigious course library with almost 100 courses available, over 25 of which that are ranked among the "Top 100 Courses in the World" by Golf Digest. TruGolf's E6GOLF Software, a physics-based engine that replicates the precise behaviours of outdoor play, can be found in commercial and residential indoor golf simulators throughout the world.

About Grenville

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

Forward-Looking Information and Statements

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

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

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

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

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

Contact Information

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