Bullboard - Stock Discussion Forum Diversified Royalty Corp T.DIV

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

Consumer Cyclical Auto & Truck Dealerships

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations... see more

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TSX:DIV - Post Discussion

Diversified Royalty Corp > Stock issue is new shares not treasury shares.

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Post by hawk35 on Feb 16, 2024 3:15pm

Stock issue is new shares not treasury shares.

The key is in the wording. The press release says the new shares were "issued from the treasury". It does not say they are treasury shares held by the treasury. They always use this expression when issuing new shares.

Also, the treasury does not have any treasury shares to use. We know this because they do not have approval from the TMX to buy back their shares. No buy back program means no treasury shares.

Bottom line is the stock issue is dilutive. Good news is that Simply Wall Street in their review of DIV confirmed the share dilution but states it is not meaningful.

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