TORONTO, ONTARIO–(Marketwired – May 17, 2016) –
NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.
Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville” or the “Company”) today announces that the board of directors of the Corporation has declared a dividend of $0.00416 per common share for the month of May 2016, representing $0.05 per share on an annualized basis. The dividend is payable on June 15, 2016 to shareholders of record on May 31, 2016. The ex-dividend date is May 27, 2016.
“This step toward achieving a sustainable dividend is commensurate with the original dividend level we implemented last year. The Board’s decision reflects the current challenges faced by the SME market and the impact we expect these conditions to have on the portfolio during the first half of 2016,” said Steve Parry, Chief Executive Officer of Grenville. “To date, we have generated $27.6 million in returns based on $63 million of invested capital which demonstrates the strength of the core holdings. We believe reducing the monthly dividend now is a responsible decision that provides greater flexibility in terms of our financial position as we continue to work with those investee companies that are underperforming.”
This dividend is designated by the Corporation to be an eligible dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents. The declaration and payment of dividends is at the discretion of the board of directors of the Corporation and any future declaration of dividends will depend on the Corporation’s financial results, cash requirements, future prospects and other factors deemed relevant by the board of directors of the Corporation.
About Grenville
Based in Toronto, Grenville is a publicly-traded royalty company that makes investments in established businesses with revenues of up to $50 million dollars. Grenville generates revenues from royalty payments and buyouts from contracts. The non-dilutive royalty financing structure offered by Grenville competes directly with traditional equity to meet the long-term financing needs of companies on more attractive commercial terms.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Steve Parry
Chief Executive Officer
(416) 777-0383
