Grenville Strategic Royalty (GRC-V) Nov 3rd 2014 has contracted for a gross sales royalty from Medical Imaging Corp. (MEDD) in exchange for an advance of $2-million (U.S.), with an option, if agreed upon by both companies, to advance up to an additional $1-million (U.S.). 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.
Message 29768683
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Oct 20, '14
Grenville Strategic Royalty Corp. has contracted for a gross sales royalty from BG Furniture Ltd. in exchange for an advance of $750,000, with an option, if agreed upon by both companies, to advance an additional $500,000. In exchange for this advance, Grenville will receive a royalty based on BG Furniture's gross revenue within Grenville's average royalty rate of between 1 per cent and 4 per cent.
BG Furniture, formerly Bogden and Gross, is an 87-year-old furniture design and manufacturing business located in Walkerton, Ont. BG Furniture makes a large variety of home and office furniture products combining best-in-class style and quality and a high degree of customization for the consumer enabled by innovative parametric manufacturing processes.
"Grenville has allowed us to accelerate our growth strategy and advance the company's services for our expanding customer base, as well as continue to innovate and bring new Canadian made, solid wood furniture to market," stated Adam Hofmann, president, BG Furniture. "Over the next five years, we plan to invest over $5-million in new product development, technological advancement in manufacturing, new products, creating good paying jobs in the process," said Dirk Nielsen, vice-president, manufacturing, BG Furniture.
"BG Furniture is a great example of the reinvention of Canadian manufacturing -- an 87-year-old company making a high-quality product using advanced manufacturing strategies and impeccable design. We are delighted to invest in the community of Walkerton, Ont., with this expert management team and skilled work force," noted William Tharp, president and chief executive officer of Grenville.
BG Furniture represents Grenville's 20th investment since its inception in July, 2013. To date, Grenville has completed approximately $20.86-million in royalty financings across Canada and the United States. |
