Grenville Strategic Royalty exits Aquam with $5M buyout

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By CPE News

Toronto (pcJ News Briefs) – Grenville Strategic Royalty Corp. (TSX-V: GRC) has received $5 million from the contract buyout of its royalty agreement with Aquam Corporation, an integrated pipe infrastructure solutions company that provides proven technology solutions to owners and operators of both water and natural gas pipe infrastructures.

Headquartered in Toronto, Ontario with corporate offices in San Diego, California and Manchester, U.K., Aquam operates from 20 locations in Canada, the United States, the U.K. and Ireland. The company currently has over 250 employees.

Grenville’s total return from its $2 million investment was $5 million plus all royalties earned since the inception of the investment in June 2014. The contract buyout transaction also generated $2.8 million of free cash flow for Grenville.

“We want to congratulate the Aquam team on the transformational financing that facilitated the buyout of the Grenville royalty and wish them continued success with their exciting business,” said Steve Parry, CEO of Grenville. “We are proud to have been a contributor to this successful outcome as an early capital provider. This is our highest cash on cash return to date, a strong demonstration of the value of our combined royalty-buyout financing structure. Grenville has now received more than $23.9 million in cash inflows from the seven buyouts to date. The proceeds from contact buyouts, like this one, provide us with a non-dilutive source of capital to redeploy across new opportunities. These new investments, together with the leverage in the portfolio from the participation of our joint venture partners, support our core objectives of diversification and scale. With $11.8 million in capital ready to deploy, we are very well positioned for 2017 growth.”

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.

photo credit: Aquam