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.