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Diversified Royalty Corp T.DIV

Alternate Symbol(s):  BEVFF | T.DIV.DB.A

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The Company owns Mr. Lube, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademark. Mr. Lube is the quick lube service business in Canada, with locations across Canada. Mr. Mikes operates casual steakhouse restaurants primarily in western Canadian communities. Nurse Next Door is North America’s growing home care provider with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is a franchised supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing janitorial, building cleaning, and office cleaning services primarily in the United States. BarBurrito is a quick-service Mexican restaurant chain.


TSX:DIV - Post by User

Comment by pierrelebelon May 02, 2022 10:23am
155 Views
Post# 34647376

RE:Additions to the Mr. Lube Royalty Pool

RE:Additions to the Mr. Lube Royalty Pool
NOT so fantastic, unfortunately.

News release a year ago: "The initial consideration paid to Mr. Lube for the estimated net additional royalty revenue is $7.7 million (previously estimated to be $6.9 million), representing 80% of the total estimated consideration of $9.6 million (previously estimated to be $8.7 million), which was paid in cash"

News release today: "The initial consideration paid to Mr. Lube for the estimated net additional royalty revenue was $3.4 million, representing 80% of the total estimated consideration of $4.3 million. The initial consideration of $3.4 million was elected by DIV to be paid in the form of 1,083,063 Common Shares of DIV on the basis of the 20-day volume weighted average closing price of the Common Shares for the period ended April 25, 2022 of $3.1592 per Common Share."

That works out to about 1% share dilution.

As a shareholder, I am not happy with the decision to pay by issuing new shares instead of simply borrowing cash.

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