TORONTO, Ontario, November 18, 2016 – Grenville Strategic Royalty Corp. (TSXV: GRC) (“Grenville” or the “Company”) today announced the closing of a $500,000 follow-on financing in Expert Homes, an Alberta-based manufacturer of modular homes. The transaction represents the first investment under the joint venture arrangements with Foregrowth Holdco Inc. (“Foregrowth”) and Darwin Strategic Royalty Corp. (“Darwin”) announced last month.
Grenville funded $250,000 of the follow-on and the Foregrowth JV and Darwin JV funded an additional $125,000 each. The funds will be used to continue to accelerate growth at Expert Homes, where sales have been very robust in 2016, well ahead of plan from the time of the original Grenville investment. With this investment, Grenville has invested a total of $1,810,000 in the company including the original $1,560,000 investment in April 2015.
“We believe Expert Homes is an excellent choice as the first co-investment given the exceptional performance of the company and the value our joint venture partners can bring to the table above and beyond capital,” said Steve Parry, Chief Executive Officer of Grenville. “We believe this investment is a great start to what we see as an exciting investment platform for the three partners.”
“This first investment, just one month after the closing of the Joint Venture agreement, represents an excellent start to our portfolio development,” said Vishy Karamadam, Director of Foregrowth-Grenville Investments Inc. “We look forward to continued growth in the portfolio in the coming months.”
“Grenville has provided us with a robust pipeline of deals for investment,” said Louis Desmarais, Managing Partner of Darwin Strategic Royalty Corporation. “The Expert Homes investment matches well with our expectations for joint funding opportunities with Grenville and we look forward to building a diverse portfolio of investments through the joint funding arrangements.”
“Grenville has been a highly strategic partner since their first investment,” said Brad Sanders, CEO of Expert Home. “We appreciate the vote of confidence from this tranche of capital provided by Grenville, Foregrowth and Darwin, and we are enthusiastic as this capital will help to fuel our business providing high quality, sustainable homes to our many First Nations partners.”
About Grenville
Based in Toronto, Grenville 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.
For further information, please contact:
Grenville Strategic Royalty Corp.
Steve Parry
Chief Executive Officer
Tel: (416) 777-0383
