Revenue Royalty Certificate Factsheet

What is a revenueroyalty certificate(“RRC”) financing?The RRC is a fundingmechanism for firms toraise capital. Theinvestors will beentitled to ‘royalty’payments computedon the revenue of thefirm. E.g. of firms thatused RRC:Listerine®,Sears® and Arby’s®.

When can the RRCbe used?• Early stage/ growth

capital;• Merger &

acquisition;• MBO/MBI; and• Business exits to

facilitate funding forincomingpurchasers.

Benefits of RRC:• Little or no equity

dilution;• No exit strategy

required;• No reliance on

valuation of the firmsince no equitystake; and

• Generally nodirector’s guaranteeis required.

Want to know moreor see how we canassist with yourcapital raisingrequirements:Contact PennamPartners oninfo@pennampartners.com or+613 9221 6219

RRC Funder

Firm

Capital injection

Issue bonds &service bondsby way ofrevenue ‘royalty’

RRC Funder can sell bondsto external party to exit withno disruption to the firm

Little or no equity released toraise capital