TORONTO, ONTARIO--(Marketwired - Nov. 3, 2014) - Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) ("Grenville") is pleased to announce that it has contracted for a gross sales royalty from Medical Imaging Corp. ("MEDD") in exchange for an advance of $2,000,000 USD, with an option, if agreed upon by both companies, to advance up to an additional $1,000,000 USD. In exchange for this advance, Grenville will receive a royalty based on MEDD's gross revenue maintaining Grenville's average royalty rate of between 1% and 4%.
Headquartered in Toronto, MEDD is engaged in providing comprehensive medical diagnostic imaging services to clients throughout North America. A substantial portion of Grenville's advance was used by MEDD to complete the acquisitions of three diagnostic imaging clinics in Florida, thereby demonstrating the pivotal role that Grenville's non-dilutive royalty financing structure can play in a growing company's acquisition strategy.
"With Grenville's investment we are able to advance our company and meet our long-term objectives. Grenville's professional staff worked expeditiously with us to meet our tight timelines for our acquisitions. It is a pleasure to work with an investment firm and its team that understands our long-term growth plans." said Mr. Geisler, Chief Executive Officer of MEDD.
"We are pleased to add MEDD to the GRC portfolio and that they were able to secure such attractive acquisition and development opportunities using Grenville's innovative financing structure." said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. "Grenville's non-dilutive financing allowed MEDD to materially strengthen its balance sheet and use this pivotal structure to secure a stronger base for their existing operator relationships, as well as pursue new operator relationships, enabling continued external growth."
MEDD represents Grenville's 22nd investment since its inception in July, 2013. To date, Grenville has completed approximately $24.16 million in royalty financings across Canada and the US.
About MEDD
Headquartered in Toronto, with offices in Las Vegas, Nevada, Pennsylvania, and Florida, Medical Imaging Corp. is engaged in providing comprehensive medical imaging services to clients in the United States and Canada through its five diagnostic centres and its Teleradiology services centre. For more information, please visit www.medimagingcorp.com.
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.