Flow Capital Announces Acquisition of Darwin Portfolio
TORONTO, September 18, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) is pleased to announce that it has acquired the portfolio of joint venture partner Darwin Strategic Royalty Corp. (“Darwin”).
The portfolio is comprised of Darwin’s share of eight existing Flow Capital royalty investments, including Expert Homes, eScribe, Hybrid Financial, Solar Brokers Canada, Dionymed Holdings, Factor75, Medworxs and Stability Healthcare. The portfolio was acquired for a price equal to approximately CAD $1.3 million, which is the original cost of the Darwin portfolio.
Concurrent with the acquisition, the joint venture between Flow Capital and Darwin was concluded. The joint venture agreement was signed in October 2016 and was due to expire in October 2018.
“I would like to thank Darwin’s principals, Louis Desmarais and Brad Romoff, for their work in making the joint venture a success, which allowed us to scale our portfolio across a broader number of investment opportunities while providing sufficient growth capital to help our portfolio companies achieve their growth objectives,” said Robb McLarty, Acting Chief Executive Officer of Flow. “Flow Capital is positioned for continued growth in its recurring revenues from royalties and interest, and non-recurring cash inflows from royalty buyouts and realizations of equity positions.”
Inclusive of the portfolio of five royalties acquired from Foregrowth, announced on August 8th 2018, this acquisition increases Flow Capital’s exposure to investments made since 2016 by approximately CAD $2.0 million. Similar to Flow’s other royalty agreements, the financial terms of all acquired royalties include an indefinite term, monthly payments, and a buyout provision. In addition, Flow Capital acquired from Darwin a warrant to purchase up to 20,000 common shares of DionyMed at a strike price of CAD $1.50 per share for a period of 5 years following the issuance date of the warrants.
About Flow Capital
Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.
For further information, please contact:
Flow Capital Corp.
Chief Executive Officer (Acting)
Phone: (416) 777-0383
1 Adelaide Street East, Suite 3002,
PO Box 171,
Toronto, Ontario M5C 2V9