Diversified Royalty raises additional $9M in offering

Mr. Sean Morrison reports 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 Diversified Royalty Corp. has closed its previously announced bought deal public offering of an additional $9-million aggregate principal amount of 5.75 per cent convertible unsecured subordinated debentures at a price of $1,000 per debenture, pursuant to the exercise in full of the overallotment option granted to the underwriters in respect of the corporation's recently completed $60-million aggregate principal amount of debentures. The full exercise of the overallotment option increased the total gross proceeds of the offering to $69-million. The syndicate for the offering was co-led by CIBC Capital Markets, as sole bookrunner, and Desjardins Securities Inc., together with 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. The net proceeds of the offering, including from the exercise of the overallotment option, are intended to be used to repay outstanding amounts under the corporation's acquisition facility, to finance expected additions to the royalty pools of certain of the corporation's royalty partners, and for working capital and general corporate purposes. The repayment of indebtedness under the corporation's acquisition facility will thereby increase the amount available to be drawn under the acquisition facility to finance future acquisitions. The debentures trade on the Toronto Stock Exchange under the trading symbol DIV.DB.B. About Diversified Royalty Corp. Diversified Royalty is a multiroyalty corporation, engaged in the business of acquiring top-line royalties from well-managed multilocation businesses and franchisors in North America. Diversified Royalty's objective is to acquire predictable, growing royalty streams from a diverse group of multilocation businesses and franchisors. Diversified Royalty currently owns the Mr. Lube + Tires, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, BarBurrito, Cheba Hut, and AIR MILES trademarks. Mr. Lube + Tires is the leading quick-lube-service business in Canada, with locations across Canada. Sutton is among the leading residential real estate brokerage franchisor businesses in Canada. Mr. Mikes operates casual steakhouse restaurants primarily in Western Canadian communities. Nurse Next Door is a home care provider with locations across Canada and the United States, as well as in Australia. Oxford Learning Centres is one of Canada's leading franchisee supplemental education services. Stratus Building Solutions is a leading commercial cleaning service franchise company providing comprehensive janitorial, building cleaning and office cleaning services primarily in the United States. BarBurrito is the largest quick-service Mexican restaurant food chain in Canada. Cheba Hut is a fast-casual toasted sub sandwich franchise with locations in the United States. AIR MILES is a Canadian loyalty program. Diversified Royalty's objective is to increase cash flow per share by making accretive royalty purchases and through the growth of purchased royalties. Diversified Royalty intends to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time, in each case as cash flow per share allows. We seek Safe Harbor.