TORONTO, Aug. 08, 2018 (GLOBE NEWSWIRE) -- Flow Capital Corp. (“Flow Capital” and “Flow”) announced today the conclusion of the joint venture agreement with Foregrowth Holdco Inc, (“Foregrowth”). The joint venture agreement was signed in October 2016 and was due to expire in October 2018.
“I would like to thank Foregrowth for their work in making the partnership a success,” said Robb McLarty, Acting Chief Executive Officer of Flow. “The partnership allowed us to scale our portfolio across a broader number of investment opportunities while still providing sufficient growth capital to help investees achieve their growth objectives. Flow is now positioned to achieve future growth through investments with stronger alignment with managers/owners, better security interests, and in certain cases, additional upside in the form of equity participation through instruments such as warrants.”
Flow Capital has divested its 15% shareholding in Foregrowth-Grenville Investments Inc. (“FGI”). Flow Capital and its other joint venture partner, Darwin Strategic Royalty Corp. (“Darwin”), acquired Foregrowth’s share of the five royalty investments made by FGI for a price equal to the investment amount. The five royalty investments consist of Expert Homes, eScribe, Factor75, Medworxs and Hybrid Financial. Flow Capital and Darwin share the acquired investments on a 79% and 21% basis, respectively.