Grenville Completes Investment in One Up Games, LLC and Interim Update
Toronto, Ontario, August 15, 2014 /Marketwired/ – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville”) is pleased to announce that it has contracted for a gross sales royalty from One Up Games, LLC (“OneUp Games”) in exchange for an advance of USD$2 million, with an option, if approved by both parties, to advance an additional USD$1 million.
OneUp Games Agreement
OneUp Games is a leading mobile sports network that develops global live-play, sports-based social gaming platforms for mobile users. Through its premium mobile sports platform, fans are linked to teams, leagues, sponsors and sports media properties while being offered a deeper and more engaging live-sports experience. As a leading second screen sports provider, OneUp Games has developed partnerships with the NFL, MLB, NBA, NHL, PGA Tour and NASCAR, together with more than 30 professional and college teams. OneUp Games is located in West Palm Beach, Florida.
“OneUp’s CEO, Daren Trousdell, and the OneUp team are changing the way fans watch sports. Their second screen platform offers considerable value to all parties involved; the teams, leagues, sponsors, and fans”, said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. “We’ve really enjoyed working with Daren and the OneUp team and are pleased to be able partner with such a revolutionary company – a great diversified addition to our growing Grenville portfolio”.
“Grenville’s innovative product was a fantastic fit for our growth plan”, said Daren Trousdell, CEO of OneUp Games. “Grenville’s team took the time to fully understand our business model and develop a solution tailored to our needs. As a partner, we feel Grenville can help us achieve our business goals while preserving value for our existing partners and shareholders”.
The investment in Securite Above, Inc. announced yesterday and the OneUp Games investment represent Grenville’s 16th and 17th investments, respectively, since Grenville’s inception in July, 2013. “These are two solid, back-to-back additions to the Grenville portfolio that provide further material portfolio diversification in IT Security and mobile sports applications. Candidly, the quality of deals we are seeing attracted to our form of capital is stronger than we had anticipated; solid, fast-growth companies run by experienced management teams with focused vision. Additions like these should result in even stronger portfolio returns with lower volatility”, said Mr. Tharp. “In just over 12 months, Grenville has deployed almost $20 million in capital in a growing and diversified small-cap, public and private royalty portfolio. This month alone, Grenville has invested just over $4 million in additional royalty partners, with a quantity of deal flow at its highest since the company’s inception. Grenville’s average quarterly invested capital, not including follow-on investments in existing portfolio companies, has increased from just over $550,000 in our first quarter (the fourth quarter of 2013) to just over $3,200,000 during the current quarter. Management is proud of this accomplishment and believes that these trends will continue given the robust pipeline we are seeing”.
About OneUp Games
OneUp Sports offers no-holds-barred, live-action, edge of your seat, split-second decision making, mobile sports platforms that offer a deeper and more engaging live-sports experience. They enhance TV sports watching, using the power of mobile and social platforms to bring professional sports teams, fans and friends together like never before. Visit www.1up.me, on twitter at @oneupgames and on Facebook at www.facebook.com/oneupgames.
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 be complementary to other financing alternatives or be simple stand-alone capital. Capital can be used in a variety of ways: from working capital needs, to funding acquisitions, buying out minority partners, or just adding a financing alternative to the range of existing capital solutions. 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.
For more information, please contact:
Grenville Strategic Royalty Corp.:
William (Bill) R. Tharp
President and Chief Executive Officer
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 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; and 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; 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; 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; and that Grenville will have the ability to raise required equity and/or debt financing on acceptable terms. 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 April 21, 2014 and the other public filings of Grenville available on SEDAR at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof, and Grenville does not undertake to update any forward-looking information 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.