Grenville Completes Investment in Insight Downhole Tools Inc.
June 02 2014 - 7:27AM
Marketwired
Grenville Completes Investment in Insight Downhole Tools Inc.
TORONTO, ONTARIO--(Marketwired - Jun 2, 2014) - Grenville
Strategic Royalty Corp. (TSX-VENTURE:GRC) ("Grenville") is pleased
to announce that it has completed the purchase of a gross sales
royalty from Insight Downhole Tools Inc. ("Insight") for a purchase
price of CAD$1.25 million, with an option, if agreed upon by both
companies, to advance an additional CAD$750,000. In exchange for
these advances, Grenville will receive a royalty based on Insight's
gross revenues within Grenville's targeted 1% - 4% royalty range,
subject to certain adjustments.
Insight Downhole Tools Inc. was incorporated in 2010 as a
Canadian-controlled private Alberta-based Corporation specializing
in measurement while drilling products and service. The company
provides directional drilling services and engages in the
development and commercialization of measurement while drilling
(MWD) near bit technology.
"Insight has displayed impressive growth since inception and has
established a solid group of employees, all of whom are
shareholders - which is a great way to build a service company in
this field," said William (Bill) R. Tharp, Grenville's Chief
Executive Officer. "We are excited about our partnership and feel a
solid fit with their management team. We are highly confident that
Mr. Ryan Richardson, Donny Hall and their team can grow their
operation in a sustainable manner and are keen to assist them in
doing so."
Ryan Richardson, Chief Executive Officer of Insight, commented:
"Grenville's product proved to be a solid fit with our current
requirements to grow the business. Their team has been receptive
and enjoyable to work with since day one. We are motivated and look
forward to working with Grenville to build our company in the
future."
Insight represents Grenville's 10th investment since its
inception in July, 2013. To date, Grenville has completed
approximately $7.2 million in royalty financings across Canada and
the US.
About Insight
Insight Downhole Tools Inc. is a Canadian-controlled private
Alberta-based Corporation specializing in measurement while
drilling products and service. The company provides directional
drilling services and engages in the development and
commercialization of measurement while drilling (MWD) near bit
technology. Insight offers MWD equipment and tools, pulser drivers
and directional sensors, and MWD software. The company was
incorporated in 2010 and is based out of Calgary with offices
throughout Alberta.
About Grenville
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 bridge the financing needs of these companies until
traditional debt or equity is available to them on more attractive
commercial terms. 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.
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.
Grenville Strategic Royalty Corp.William (Bill) R.
TharpPresident and Chief Executive Officer(416) 777-0383
Grenville Strategic Royalty (TSXV:GRC)
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