TSX:DHT.UN - Post by User
Comment by
Marley66on Jul 05, 2023 2:00am
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Post# 35526773
RE:National bank
RE:National bank And....DRI has another deal in late-stage due diligence, which, should it close, will very likely result in a firm guidance of growing cash receipts.
Transaction Details
Details of the transaction include 1) upfront purchase price of US$85 mln; 2) DRI to receive a mid-single digit tiered royalty on worldwide sales (we are assuming U.S. and E.U. countries in our forecasts); 3) an undisclosed (but likely in the US$ millions) regulatory milestone payment following potential E.U. approval (decision in the NTM); 4) undisclosed (but likely in the US$ millions) milestone payment(s) should sales exceed certain thresholds; 5) 15 years of patent protection (until January 2038); 6) DRI to receive quarterly royalty payments on a one-quarter lag basis from April 1, 2023 (first payment in Q3/2023); and 7) the deal to be financed via a combination of cash and credit.
As discussed, we preliminarily estimate an IRR in the upper end of DRI’s guided 10%-14% target range.