Grenville Strategic Royalty Announces Successful Exit of Wmode Transaction

TORONTO, ONTARIO--(Marketwired - July 27, 2015) - Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) ("Grenville" or the "Company") today announced a successful exit of its investment in Wmode Inc. ("Wmode"), a Calgary-based technology and service company for the connected device, mobile and app economy, in accordance with the terms of the royalty agreement previously entered into between Grenville and Wmode.

Grenville's total return from its $1.0 million investment in Wmode in November, 2013 was $3.15 million, representing an IRR of approximately 104% and a 3.15x cash on cash return.

"Wmode's platform attracted new, high-quality investors with a great deal of expertise in identifying innovative technologies and excellent management teams, which Wmode clearly has," said William (Bill) R. Tharp, President and Chief Executive Officer of Grenville. "This transaction is a great example of our business model and the applicability of the royalty offering we're pioneering by providing capital to companies that helps them achieve their growth objectives while allowing them to retain their independence and equity ownership, including enabling shareholders the ability to monetize the value in the business at the right time. It also demonstrates our deal structure allows us to balance expected SME portfolio investment losses and gains to protect our overall portfolio returns, an important attribute of our small business investment strategy. A 3x cash on cash return on our investment protects the portfolio for three equivalent investments. Proceeds from this sale will be used to strengthen our dividend capability, make new investments from our robust pipeline of prospects and follow on investments in select portfolio companies."

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.