RE:2 Successful Exit and 2 impairments GRENVILLE ANNOUNCES PORTFOLIO UPDATES
TORONTO, ONTARIO--(Marketwired - Aug. 27, 2015) - Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) ("Grenville" or the "Company") today announced that it has entered into a buyout agreement with Above Security Inc. ("Above Security"), one of its investee companies, as a result of the proposed acquisition of Above Security by Hitachi Systems, Ltd. ("Hitachi"), a wholly owned subsidiary of Hitachi, Ltd. Above Security will, in accordance with the terms of the royalty agreement between the parties and subject to the completion of the Hitachi acquisition, buy out Grenville's royalty investment in Above Security. Grenville will receive a buyout payment of $6.2 million, less transaction-related expenses, upon closing of the Hitachi acquisition, which is expected to be completed on or around October 15, 2015 subject to the satisfaction of conditions of closing typical for transactions of this nature.
Based on the $3.18 million invested by Grenville in Above Security, this results in a total return of approximately $3 million, representing an IRR of approximately 128% and a 2.1x cash on cash return.