TORONTO, Oct. 26, 2015 – Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) has received from Above Security Inc. $6.7 million net of transaction costs, completing the previously announced buyout of the $3 million royalty agreement and repayment of two bridge notes totaling $960,000. Above Security is a Montreal-based provider of managed cyber-security services which was previously reported on August 27, 2015.
“Grenville provided the catalytic capital that enabled us to successfully transition to the next stage of our company,” said Ray Chehata, Chief Executive Officer of Above Security. “Grenville’s professional and financial support throughout the sale process was critical to this highly favourable outcome for all parties.”
“We are very pleased with this transaction, and this investment is our highest return to date for Grenville shareholders,” said Grenville Chief Executive Officer William (Bill) Tharp. “Grenville generates stable royalty revenues and cash flow for our shareholders with the upside of equity-like returns on royalty buyouts. This is an excellent example of how our business model works to the benefit of our shareholders and the businesses within our portfolio.”
Following this transaction, Grenville has approximately $29.4 million of capital available for investments.
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 $19.7 million from $42.7 million invested in the two years since its inception.
Certain statements herein may be “forward-looking” statements that involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of Flow or the industry to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof. Flow assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances.
