Diversified Royalty Corp. Announces Closing of the Over-Allotment Option Exercised in Connection with its Recently Completed $60 Million Bought Deal Offering of 5.75% Convertible Unsecured Subordinated Debentures

Core Viewpoint - Diversified Royalty Corp. has successfully closed a public offering of $9,000,000 in convertible unsecured subordinated debentures, increasing total gross proceeds to $69,000,000 after the full exercise of the over-allotment option [1][3]. Group 1: Offering Details - The offering consisted of an additional $9,000,000 aggregate principal amount of 5.75% convertible unsecured subordinated debentures priced at $1,000 per debenture [1]. - The total gross proceeds from the offering, including the over-allotment option, reached $69,000,000, following a previously completed offering of $60,000,000 [1][3]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized to repay outstanding amounts under the Corporation's acquisition facility, fund expected additions to royalty pools, and for working capital and general corporate purposes [3]. - Repaying the acquisition facility will increase the amount available for future acquisitions [3]. Group 3: Company Overview - Diversified Royalty Corp. is a multi-royalty corporation focused on acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America [6]. - The company aims to acquire predictable and growing royalty streams from a diverse group of businesses, including brands like Mr. Lube + Tires, Sutton, and AIR MILES® [7]. Group 4: Financial Strategy - The company intends to increase cash flow per share through accretive royalty purchases and growth of purchased royalties [8]. - It aims to maintain a predictable and stable monthly dividend for shareholders, with plans to increase the dividend over time as cash flow per share allows [8].