Core Viewpoint - Diversified Royalty Corp. has amended its licensing agreements with Air Miles and Bank of Montreal, resulting in a more favorable financial arrangement for the company, including guaranteed royalty payments and the potential for future monetization of trademarks [1][2][5]. Licensing Agreement Details - The amended licenses will provide a fixed annual royalty payment of $3,925,000 for 10 years, with payments made quarterly [2]. - The royalty will increase at a rate of 2.42% per annum starting February 1, 2027 [2]. - The royalty payments are guaranteed by Bank of Montreal [2]. Future Rights and Options - AM Royalties Limited Partnership will have the right to sell or license the AIR MILES® trademarks starting February 1, 2032 [3]. - Air Miles has the option to buy out the remaining term of the licenses for a cash payment equal to the net present value of the remaining royalty payments after February 1, 2032 [3]. Financial Impact - The amendment is expected to result in approximately $43.8 million in total royalty payments over the next 10 years, significantly increasing the annual royalty payment by over 20% compared to previous years [5]. - Prior to the amendment, royalty payments had decreased to a low of $3.2 million in 2025, indicating a positive shift in financial outlook for the company [5]. 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 increase cash flow per share through accretive royalty purchases and intends to maintain a stable monthly dividend for shareholders [8].