Royalty North Closes Inaugural Loan and Royalty Transaction

September 2, 2016

Responsive image

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 2, 2016) – Royalty North Partners Ltd. (TSX VENTURE:RNP) (“RNP” or the “Company“) is pleased to announce that it has completed the transactions contemplated by its previously announced loan and royalty agreement (the “Agreement“) with Country Wine & Spirits, Inc. (“CWS“), a leading San Diego retailer of wine, beer & liquor.

Under the terms of the Agreement, RNP has loaned US$5,500,000 to CWS (the “Loan“) and, as partial consideration for the Loan, CWS has granted RNP a royalty (the “Royalty“) calculated on the gross sales of CWS. The initial royalty rate will be 5.5% of gross sales until the Loan has been repaid at which point a reduced royalty rate will be payable thereafter. CWS is required to pay a minimum of US$770,000 per year for the first two years.

Justin Currie, Chief Executive Officer at RNP, commented: “We are pleased to have successfully closed this transaction with CWS and look forward to our partnership with them going forward.”

Proceeds from the Company’s recently completed private placement were used to fund the Loan. The private placement consisted of approximately C$9.5 million of units at a price of C$0.15 per unit, with each unit consisting of one common share in the capital of the Company and one-half of one share purchase warrant (as opposed to a full warrant as referenced in the Company’s September 1, 2016 press release). Each full warrant entitles the holder to acquire one common share in the capital of the Company at C$0.25 per share until the date that is 60 months from the closing of the private placement.

RNP is currently evaluating a number of other high-quality companies with the goal of providing attractive royalty-based financing to our partners and diversifying the Company’s portfolio of royalty investments.

On behalf of the Company,

Justin Currie, Chief Executive Officer and Director

About Royalty North Partners Ltd.

Royalty North Partners is a Vancouver, BC based, TSX-V listed (RNP) company focused on creating a diversified portfolio of cash flowing royalties by providing financing to private businesses operating in the “mid-market”. RNP is led by a seasoned board and management team with a successful track record of experience in royalty financing, capital markets transactions and private company operations. RNP is targeting royalty investments in companies with stable cash flow in non-resource based sectors looking for growth capital or succession liquidity.

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

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “target” and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company’s expectations as of the date of this news release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time.

Category: General