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GRC.V - Grenville Strategic Royalty Corporation

Grenville est une société de financement d’entreprise basé sur royalty des revenues. ci-inclus le lien de la compagnie
Grenville déclare aussi des dividendes sur ces profits tel qu’expliquer dans son dernier bilan financier
actions en circulation 80,450,263
prix de l’action 13-05-2015 $ 0.85
GRC-V a été recommandé par Eric Nutall sur le canal BNN ci-inclus la vidéo
ainsi que Jérôme Hass aussi sur BNN

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Le dernier prix cible selon l’analyste de la banque Nationale (9 mars 2015) est de $1.15
Voici le résumé

  • Off Restriction post financing
    We are resuming coverage following GRC’s $11.5 mln equity
    raise, which added 19.8 mln shares (priced at $0.58/share) and
    increased basic share count by 33% (to 79.2 mln).

  • Cash balance forecast to be over $18 mln
    After adjusting for the financing, the Feb. 18 / March 2
    secondary / tertiary $500k investments into Above Security and
    new $1 mln investment into WATCH IT! (Feb. 27), we calculate
    GRC has $18.2 mln remaining in cash. With management
    targeting deploying $2-4 mln per month it appears GRC has
    adequate liquidity to fund its acquisition strategy the next ~2+
    quarters.

  • Return on investment compelling
    With recent results demonstrating GRC is capable of achieving
    the lower end of its targeted 25-40% IRR, EBITDA margins
    60%+ and growing, and its cost of equity believed sub-10%
    (7.2% dividend yield), the accretion from GRC deploying each
    new dollar of capital is by far the highest amongst our coverage
    list. Its 25% ROI is well ahead of TSX diversified royalty peers
    Alaris (14-16%) and Diversified Royalty (~12%); however, GRC
    trades at less than half their average valuation, which we
    expect narrows over time.

  • Above Security establishing a nice footprint
    GRC made its initial $2 mln investment into the IT solutions
    provider mid-August, the subsequent advances taking total
    invested capital in Above Security to $3 mln, making it the
    largest single current partner (~12% of current ~$27 mln
    invested capital). Above used the proceeds to help acquire
    information integrator Seccuris, which provides a
    complementary platform with U.S. upside, the resulting growth
    in top line flowing through to GRC (subject to some carve-out)
    as per its top-line royalty structure.

  • Resuming with unchanged OP rating and $1.15 target
    Our target implies 10x 2016e EV/EBITDA & 14x P/CF multiples.

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J’aime bien le modèle d’affaires de l’entreprise, mais je n’ai jamais vraiment pris le temps de creuser.

@Snowball, es-tu toujours actionnaire ?

Oui Je le suis

La Banque Nationale réitère le prix cible a $1.15 selon un rapport le 13 mai 2015.
Voici le résumé

  • Results ahead of NBF forecast; In line with Street
    GRC reported Q1/15 revenue of $1.6 mln (vs. $1.4 mln est.),
    adj. EBITDA of $1.1 mln (vs. $0.9 mln est.), EPS of $0.02 (vs.
    $0.01 est.) and DCPS of $0.008 reflecting a 53% payout (vs.
    $0.005/79% est.). Results were in line with consensus $1.5 mln
    top line and $1.1 mln EBITDA.
  • Royalty rate tracking well
    One of the most compelling and unique features of GRC is its
    targeted $250k+ return per $1 mln deployed, and the portfolios
    performance continues to impress. GRC averaged $250k in
    Q1, with March the highest to date at $263k. Additional Q1
    results takeaways include: 1) same-portfolio rev growth
    continues to track well; 2) none of the portfolio partners are in
    arrears, which is a positive given the nature of GRC’s SME
    portfolio; 3) we continue to believe a handful of investments
    have the potential to be monetized this year, providing a
    significant return to GRC; and 4) deal flow outlook and
    expectations of $2-$4 mln capital deployed/month remain
    consistent with expectations.
  • Resuming coverage post financing
    We are off Restriction following GRC’s $13.8 mln financing,
    which placed 17.3 mln shares (+21% to 97.6 mln basic) at a
    price of $0.80. The prior financing done in February was at a
    price lower than we were modelling ($0.58 vs. $0.75); however,
    with the recent uptick in share price this transaction pushes the
    average closer to a level we originally modelled.
  • Two partners added + two follow-ons
  1. $1.7 mln into Dove Cleaners; 2) $1.6 mln into Expert RV
    Park Models; and additional financings into 1) Bluedrop
    Performance Learning (up to $650k by YE); & 2) US$1 mln into
    Lattice Biologics. Following the equity raise and these
    investments GRC has a total of ~$34 mln deployed into 23
    portfolio companies (average investment $1.5 mln), with ~$24
    mln in cash remaining (expected to last until into Q4/15).
  • Reiterate Outperform rating; $1.15 target price

Dividendes annoncés:

Grenville Strategic to pay 0.41-cent dividend
2015-05-15 18:06 ET - Dividend Declared
The issuer has declared the following dividend.
Dividend per common share: 0.416 cent
Payable date: June 15, 2015
Record date: May 29, 2015
Ex dividend date: May 27, 2015

Octroi d’options chez grenville Grenville grants options to buy 2.91 million shares

L’opinion de Jérôme Hass sur le canal BNN Son commentaire positif sur le titre a environ 2:00 minute du vidéo

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Un autre recommandation sur BNN de Eric Nutall voici le vidéo, selon lui, il va y avoir des augmentations de dividendes dans le futur. J’ai remarqué aussi que le titre semble avoir beaucoup de résistance a passer le $0.90

Une nouvelle présentation pour les investisseurs est disponible Juin 2015

Bonjour, comme certain ici je suis relativement nouveau dans le domaine des micro caps ainsi que dans l’univers de la Bourse en général. Je lis les commentaires sur le forum depuis quelques mois et je me demandai:
Est-ce que quelqu’un aurait une hypothèse sur les causes du chute du prix de l’action depuis 1 mois? (L’action est à 0.51, en date du 24 août)

Dans leur dernier trimestre, il y a eu un “impairment” dans un de leur placement. Je crois qu’il sont rendu a deux mauvais placements cette année. Certains analystes se demandent si la compagnie a bien fait leur due diligences avant d’investir dans ces compagnies. Ce qui a fait baisser le prix de l’action et en plus de la correction du marché actuel qui n’aide pas…

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Une bonne nouvelle pour Grenville aujourd’hui,

Grenville Strategic’s Above to be acquired by Hitachi

2015-08-25 09:47 ET - News Release

Mr. William Tharp reports

GRENVILLE PROVIDES UPDATE ON ABOVE SECURITY

Grenville Strategic Royalty Corp. has provided the press release issued on Aug. 25, 2015, by its portfolio company, Above Security Inc., regarding the proposed acquisition of Above Security by Hitachi Systems Ltd., a wholly owned subsidiary of Hitachi Ltd.

Hitachi Systems acquires Above Security, a global IT (information technology) security service provider in Canada – to accelerate global development of Hitachi’s managed security service and security consulting businesses

Hitachi Systems Ltd., a wholly owned subsidiary of Hitachi Ltd., and Above Security Inc., a global IT security service provider in Canada, announced that Hitachi Systems has decided to acquire Above Security and make Above Security a wholly owned subsidiary. The acquisition process will be completed in October.

Through this acquisition, Hitachi Systems will integrate the advantages of both companies and leverage the group companies in Japan and overseas to strengthen its managed security service business (1) and its security consulting business in Japan, North America, Europe, India and Southeast Asia.

(1) The aim of the managed security service is to provide prioritized security measures to customers, undertake the early detection of security incidents with security monitoring and examine problems using a security diagnosis system for the configuration servers and machines of the customers’ system by using the unified SOC (security operations centre) operation software.

Hitachi Group is promoting the social innovation business globally to address the challenges facing the society in general and its customers in particular by providing targeted solutions with a combination of products, services and IT.

IT systems, web services and data are becoming increasingly important in society. On the other hand, the exploitation of information and system failure caused by malignant attacks are occurring frequently, therefore increasing the need for security services. In addition, with the advent of the Internet of things (IoT) – connecting everything (including social infrastructure and services such as electricity, gas and water) to IT networks, the importance of security is significantly increasing. Hitachi Systems, as the core company addressing the information and telecommunication systems business of the Hitachi Group, is pursuing the enhancement and global development of its key IT security business.

Above Security is one of the world’s leading global managed security service providers with SOCs in Canada, Mexico and Switzerland, providing managed security services to customers in over 40 countries. Above Security delivers its services using high-performance, unified SOC operation software that it has developed in-house, and a security consulting practice that complies with the industries and legal standards and regulations as well as the company’s own security standards. In recent years, Above Security has been building up its business capabilities in Japan and Asia, expanding its business in Europe and strengthening its managed security service business, as well as its security consulting business.

Thus, Hitachi Systems recently decided to acquire Above Security and make Above Security a wholly owned subsidiary. By combining the products, service engineering technologies and expertise, as well as the business resources of the two companies, Hitachi Systems will be able to provide customers worldwide with more advanced and broader range of IT security services based on Above Security’s managed services and security consulting practice. Since Above Security has no customer base in Asia and southern Europe, Hitachi Systems will seek to further expand the business by successively providing a global security service that will leverage the integration of the technology of the two companies through the group companies of Hitachi Systems in India, Southeast Asia and Italy.

Hitachi Systems Group is focusing on a variety of measures to achieve fiscal year 2015 sales target of 500 billion yen and the 10-per-cent overseas sales ratio specified in the midterm management plan. Through this acquisition, the group will strengthen and expand its global business and will be a step closer to accomplishing this objective.

Naoya Takahashi, president and chief executive officer of Hitachi Systems, said: “We are very pleased to welcome Above Security to the Hitachi Systems Group. The security business is one of the most important IT services that will continue to grow in demand and complexity in the future. Hitachi Systems has the advantages of having built solid security service technology, know-how and solutions (such as Hitachi Systems SOC services) that we have developed in Japan and our business capability in Europe and Asia. By integrating these advantages with the global security services capacity, technology and know-how of Above Security, we will create advanced IT services and actively provide them to companies across the globe.”

Ray Georges Chehata, president and chief executive officer of Above Security, said: “We have started 18 months ago a global strategic growth plan to stay competitive in the actively consolidating IT security market. This process had led us to the acquisition of Seccuris last February. Now, by joining the Hitachi Systems Group, we have found a global partner that embraces our vision and will allow us to continue to run as a separate entity, while further enhancing our capability to continue to give our clients the highest level of services without compromising the values that made Above Security a successful and respected player globally.”

Grenville considers the announcement to be positive and will provide a further update to the market on this development once more information becomes available.

Grenville Strategic sells royalty to DS for $1.39M

2015-09-29 17:45 ET - News Release

Mr. William Tharp reports

GRENVILLE STRATEGIC ROYALTY ANNOUNCES SUCCESSFUL BUYOUT OF DS HANDLING INVESTMENT

Grenville Strategic Royalty Corp. has entered into an agreement with DS Handling Systems Ltd., an Ontario-based provider of case and pallet conveyer handling systems, pursuant to which DS has bought out Grenville’s royalty for $1.39-million in cash in connection with a change of control of DS.

Based on the $1.0-million invested by Grenville in DS Handling, the total return of $1.65-million represents an internal rate of return of approximately 67 per cent and a 1.65 times cash on cash return.

“Grenville’s unique royalty structure provided our family business with the capital required to transition us successfully through a change in ownership. We appreciated the Grenville team’s professionalism and attention to detail throughout the relationship,” said Steve Marr, chief executive officer of DS Handling.

“The DS Handling buyout, along with those previously announced for WMode and Above Security, in combination with royalty payments received to the end of June, has generated over $18-million in cash returns from $42-million in invested capital since Grenville’s inception just two years ago,” said William R. Tharp, president and chief executive officer of Grenville. “We believe this level of cash generation demonstrates the advantage in our unique investment approach focused on smaller, cash-generating businesses.”

We seek Safe Harbor.

Greenville strategic royalty a finalisé la transaction de vente de Above security et a maintenant 29.4 million a déployé pour ses prochains investissements.

Grenville Strategic Royalty Announces Closing of Above Security Royalty Exit
TORONTO, ONTARIO–(Marketwired - Oct. 26, 2015) - Grenville Strategic Royalty Corp. (TSX VENTURE:GRC) (“Grenville”) has received from Above Security Inc. $6.7 million net of transaction costs, completing the previously announced buyout of the $3 million royalty agreement and repayment of two bridge notes totaling $960,000. Above Security is a Montreal-based provider of managed cyber-security services which was previously reported on August 27, 2015.

“Grenville provided the catalytic capital that enabled us to successfully transition to the next stage of our company,” said Ray Chehata, Chief Executive Officer of Above Security. “Grenville’s professional and financial support throughout the sale process was critical to this highly favourable outcome for all parties.”

“We are very pleased with this transaction, and this investment is our highest return to date for Grenville shareholders,” said Grenville Chief Executive Officer William (Bill) Tharp. “Grenville generates stable royalty revenues and cash flow for our shareholders with the upside of equity-like returns on royalty buyouts. This is an excellent example of how our business model works to the benefit of our shareholders and the businesses within our portfolio.”

Following this transaction, Grenville has approximately $29.4 million of capital available for investments.

Grenville acquires $2M (U.S.) sales royalty from Agnity

2015-11-02 07:36 ET - News Release

Mr. William Tharp reports

GRENVILLE COMPLETES US $2 MILLION ROYALTY INVESTMENT IN AGNITY GLOBAL, INC.

Grenville Strategic Royalty Corp. has contracted for a gross sales royalty from Agnity Global Inc. in exchange for an advance of $2-million (U.S.) with a $750,000 (U.S.) convertible promissory note. In exchange for this advance, Grenville will receive a royalty based on Agnity’s gross revenue within Grenville’s average royalty rate of between 1 per cent and 4 per cent.

Based in Fremont, Calif., Agnity is a global technology solutions and services company dedicated to designing, developing and deploying application solutions that enable communications and collaboration for telecommunications and healthcare service providers. Agnity delivers business value to its clients by not only designing and delivering innovative solutions, but also by providing expertise on deployment, management and support of the solutions.

Agnity chief executive officer, Sanjeev Chawla, commented: “Partnering with Grenville provides Agnity the capital to enable a next phase of growth to meet rapidly accelerating market demand for our solutions. We look forward to working with Grenville to build and strengthen our company.”

“This is a relevant investment for Grenville,” said Grenville chief executive officer William Tharp. “Agnity has attracted clients that are some of the largest telecommunications and health care companies because of Mr. Chawla and his remarkable leadership team, and we are pleased to help facilitate the next stage of growth for the company. This investment is a solid defensive addition to Grenville’s balanced and diversified portfolio that works to benefit our shareholders.”

Résultat spectaculaire pour GRC et augmentation du dividendes Grenville Strategic earns $3.89-million in Q3 2015

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J’aime ce que je vois, dividende à 0.07$, rendement élevé sur le capital investi. Si les buyouts peuvent plus que couvrir les mauvaises créances, ça devient assez intéressant…

Un modèle DCF m’aiderait à mieux évaluer l’opportunité. Il serait temps que je m’y mette, avec 7m+ de warrants/options à 0.42$ qui expirent en février 2016, nous pourrions avoir une fenêtre d’entrée à faible risque…

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Nouveaux rapport de la Banque Nationale prix cible a $1.10

HIGHLIGHTS
 Results reinforce appeal of SME royalty model
GRC reported Q3/15 revenue of $4.5 mln (as estimated & vs. $900k
Q3/14), adj. EBITDA of $4.3 mln (vs. $3.6 mln est. & $540k Q3/14) and
adj. DCPS of $0.02 reflecting a 71% payout ratio (vs. $0.01/121% est.
& nil Q3/14). Results were ahead of $4.2 mln top-line and $3.5 mln
EBITDA consensus expectations.
 Significant growth due to portfolio expansion + buyouts + FX
The y/y gains were a result of: 1) 26 partner companies totaling ~$42
mln of invested capital to end Q3 vs. 15 / ~$20 mln Q3/14; 2) net gains
on proceeds from contract buyouts of $2.2 mln (Wmode & DS
Handling) running through top-line and EBITDA; 3) recouping ~$410k
from last year’s $1 mln APO Group impairment (behind the EBITDA
beat vs. NBF expectations); and 4) favorable FX (~65% of the
portfolio’s invested capital US$).
 Royalty rate tracking well
Revenue per $1 mln deployed Q3 averaged ~$240k, just below the
targeted 25% and our forecast, but averaging over $500k when
including royalty buyouts. At least two more monetizations will be
booked Q4 totalling ~$3 mln in net proceeds (Above & INOVx), and the
base portfolio is performing well, suggesting positive momentum for
this key metric and GRC’s financial results as a whole.
 One new partner + four follow-ons in the quarter
Following these investments GRC’s portfolio totals 25 partners and
~$40 mln invested capital: the previously announced US$2 mln to
California-based telecommunication company Agnity Global; and
follow-ons into: 1) Switch Video ($410k + $100k loan); 2) Lattice
Biologics (US$700k loan); 3) Manifest Communications ($250k); & 4)
BG Furniture Inc. ($550k + $100k loan). With ~$25 mln in cash, a deep
pipeline of opportunities and a constantly growing team to identify and
vet deals we expect GRC remains active deploying capital despite the
recent slowdown, as evidenced by our Q4/15 assumption of another
~$10 mln and ~$13-$14 mln per quarter through 2016.
 Dividend up materially, but payout believed sustainable
Our math suggests the new dividend level of $0.07/year (+40% from
the previous $0.05) reflects a 134% payout ratio on GRC’s base
portfolio, but 78% assuming the cash on its balance sheet is fully
deployed and 53% incorporating to date cash flow gains from royalty
buyouts, suggesting the current ~10% yield is too high.
 Target increased to $1.10 (from $1); Reiterate Outperform

À première vu, très bon résultat. Je vais me pencher également sur ce titre un peu plus dans les prochains jours/semaines.

Quelqu’un peut me dire pourquoi retourner autant aux actionnaires sous forme de dividende? Je vois que l’entreprise à une encaisse du tonnerre, mais est-ce par manque d’opportunité d’investissement?