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Toronto-based LOGiQ Asset Management Inc. announced on Monday that it has entered into an agreement to acquire Grenville Strategic Royalty Corp., also of Toronto, in an all-stock deal.

Specifically, LOGiQ will acquire all of the issued and outstanding common shares of Grenville on the basis of 6.25 common shares of LOGiQ for each outstanding Grenville share. Upon completion of the transaction, existing holders of LOGiQ and Grenville shares will collectively own approximately 33% and 67% of the combined company, respectively.

LOGiQ, which provides investment management services to institutional investors, and Grenville, which makes investments in growing businesses in the technology, industrial technology and services sectors in exchange for a long-term royalty, believe that the companies together will offer a more effective and viable platform for enhancing shareholder value.

LOGiQ, which was formed through the merger of Aston Hill Financial Inc. and Front Street Capital in 2016, sold off its retail investment business of 32 mutual funds and closed-end funds collectively comprising $1.3 billion in assets under management, to Purpose Investments Inc. late last year in a deal valued at $32.9 million.

“As we explored various options for LOGiQ shareholders, we believe Grenville and its business model, combined with LOGiQ’s institutional global advisory sales platform, offers exciting growth opportunities and the potential to rebuild shareholder value” says Eldon Smith, LOGiQ’s chairman, in a statement. “Grenville’s renewed investment process, strong deal flow pipeline and investment structure are designed to return significant cash on cash yields to investors while participating in the growth of its portfolio companies. This model has been built to provide a win for Grenville’s shareholders and portfolio companies alike.”

“Both companies have worked very hard over the past year to address their challenges, and the combination of these businesses will provide us with a solid financial platform from which to build a value-creating business focused on providing alternative sources of financing to high-growth companies throughout North America,” adds Vernon Lobo, chairman of Grenville’s investment committee, in a statement. “We are looking forward to partnering with Steve Mantle and his team at LOGiQ Global Partners as they continue to grow their business, which generates a consistent and growing revenue stream for the benefit of shareholders. We will be working on board and management configuration over the coming weeks.”