Diversified Royalty Corp. Announces Closing of the Over-Allotment Option Exercised in Connection with its Recently Completed $60 Million Bought Deal Offering of 5.75% Convertible Unsecured Subordinated Debentures

Executive Summary

• Diversified Royalty Corp. closed a bought‑deal public offering of an additional $9 million of 5.75% convertible unsecured subordinated debentures, exercising the full over‑allotment option and bringing total gross proceeds to $69 million.
• Net proceeds will be used to repay indebtedness under the acquisition facility, fund additions to royalty pools of partner companies, and support working capital/general corporate purposes, thereby increasing future borrowing capacity for acquisitions.
• The debentures trade on the Toronto Stock Exchange under the symbol “DIV.DB.B”.

Key Details

• Offering Size: $9 million additional principal (5.75% convertible unsecured subordinated debentures) at $1,000 per debenture.
• Total Gross Proceeds: $69 million (including prior $60 million offering and full over‑allotment).
• Interest Rate / Terms: 5.75% coupon; convertible; unsecured; subordinated.
• Underwriters/Syndicate: Co‑led by CIBC Capital Markets (sole bookrunner) with Desjardins Securities Inc.; participants also included Canaccord Genuity Corp., National Bank Financial Inc., Scotia Capital Inc., ATB Capital Markets Corp., BMO Nesbitt Burns Inc., iA Private Wealth Inc., and Raymond James Ltd.
• Use of Proceeds:
• Repayment of outstanding amounts under the corporation’s acquisition facility.
• Funding expected additions to royalty pools of certain royalty partners.
• Working capital and general corporate purposes.
• Repayment will increase available borrowing capacity for future acquisitions.
• Trading Symbol: DIV.DB.B on the Toronto Stock Exchange.

Notable Quotes

• Sean Morrison, CEO: “The successful completion of this offering provides us with the financial flexibility to continue acquiring high‑quality royalty streams and support growth across our portfolio.”
• Greg Gutmanis, President & CFO: “Deploying proceeds to reduce acquisition facility debt enhances our balance sheet and positions DIV for further strategic acquisitions.”