Grenville Strategic Royalty Announces Restructuring of Lattice Biologics Investment

TORONTO, Ontario, April 26, 2017 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced that, subject to the approval of the TSV Venture Exchange, 18,246,600 common shares (“Shares”) of Lattice Biologics Ltd (TSXV: LBL) (“Lattice”) will be issued to the Company at an issue price of CDN$0.20 in exchange for the extinguishment of USD$2,000,000 of Grenville’s original royalty investment in Lattice and USD$700,000 of overdue royalty payments owing by Lattice to Grenville under the existing royalty agreement between the parties. Immediately following the issuance of the Shares, Grenville expects that it will hold approximately 19.7% of the total issued and outstanding common shares of Lattice. The Shares will be subject to a four-month hold period under applicable securities laws.

Pursuant to the transaction, the existing royalty agreement will be terminated and additional overdue royalty payments of US$69,512 will be extinguished. The remaining USD$1,000,000 of the original royalty investment will be converted to a new royalty equal to 1.25% of the revenue of Lattice, payable quarterly as and when cash and cash equivalents of Lattice for a quarter exceed the cash and cash equivalents of Lattice for the previous quarter by at least USD$100,000.
In addition, the parties have agreed to amend the secured note in the principal amount of USD$700,000 issued by Lattice to Grenville on July 31, 2015 (the “Secured Note”) to extend the maturity date until April 24, 2022, and to change the interest rate from 12.5% per annum to 4.244% per annum. Accrued interest owing under certain unsecured promissory notes issued by Lattice to Grenville will also be extinguished.

“Lattice has made good progress on their development of new products,” said Grenville CEO Steve Parry. “Based on this progress, Grenville believes that transitioning our investment to a blend of equity, royalty and debt provides the best opportunity for positive financial returns for Grenville’s shareholders while improving Lattice’s balance sheet for future growth opportunities.”
Completion of the transaction is subject to all necessary approvals, including the approval of the TSX Venture Exchange.

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.
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.
For further information, please contact:

Grenville Strategic Royalty Corp.:
Steven Parry
Chief Executive Officer
Tel: (416) 777-0383