20:17:13 EST Mon 30 Jan 2023
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Diversified Royalty Corp
Symbol DIV
Shares Issued 124,766,307
Close 2022-11-22 C$ 2.91
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Diversified Royalty closes $46-million public offering

2022-11-23 11:35 ET - News Release

Mr. Sean Morrison reports

DIVERSIFIED ROYALTY CORP. ANNOUNCES CLOSING OF $46.0 MILLION BOUGHT DEAL PUBLIC OFFERING OF COMMON SHARES

Diversified Royalty Corp. has closed its previously announced bought deal public offering of 16,428,900 common shares from treasury of the corporation, including 2,142,900 common shares issued pursuant to the full exercise of the overallotment option, at a price of $2.80 per common share for total gross proceeds of approximately $46-million. The offering is fully described in the corporation's prospectus supplement dated Nov. 16, 2022, to the corporation's short form base shelf prospectus dated May 11, 2021, copies of each of which are available under Diversified Royalty's profile on SEDAR.

The offering was conducted by a syndicate of underwriters, led by Cormark Securities Inc., that included CIBC World Markets Inc., Canaccord Genuity Corp., PI Financial Corp., BMO Nesbitt Burns Inc., iA Private Wealth Inc. and Scotia Capital Inc.

As described in the prospectus supplement, Diversified Royalty intends to use the net proceeds of the offering for repayment of outstanding amounts under the company's acquisition credit facility, which funds were drawn by the company to partially finance its indirect acquisition of the worldwide trademark portfolio and certain other intellectual property rights utilized by SBS Franchising LLC in its business of offering, managing and operating master franchises for commercial cleaning services and building maintenance care under the Stratus Building Solutions system and trademarks.

About Diversified Royalty Corp.

Diversified Royalty is a multiroyalty corporation, engaged in the business of acquiring top-line royalties from well-managed multilocation businesses and franchisors in North America. The company's objective is to acquire predictable, growing royalty streams from a diverse group of multilocation businesses and franchisors.

Diversified Royalty currently owns the Mr. Lube, Air Miles, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres and Stratus Building Solutions trademarks. Mr. Lube is the leading quick lube service business in Canada, with locations across Canada. Air Miles is Canada's largest coalition loyalty program. Sutton is among the leading residential real estate brokerage franchisor businesses in Canada. Mr. Mikes currently operates casual steakhouse restaurants primarily in Western Canadian communities. Nurse Next Door is one of North America's fastest-growing home care providers with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is one of Canada's leading franchised supplemental education services. Stratus Building Solutions is a leading commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning and office cleaning services primarily in the United States.

Diversified Royalty's objective is to increase cash flow per share by making accretive royalty purchases and through the growth of purchased royalties. The company intends to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time, in each case as cash flow per share allows.

We seek Safe Harbor.

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