On November 23, 2022, Diversified Royalty Corp. (“DIV”) closed its previously announced bought deal public offering of 16,428,900 common shares from treasury, including 2,142,900 common shares issued pursuant to the full exercise of the over-allotment option, at a price of $2.80 per common share for total gross proceeds of approximately $46M (the “Offering”).

The Offering was conducted by a syndicate of underwriters led by Cormark Securities Inc., that included CIBC World Markets Inc., Canaccord Genuity Corp., PI Financial Corporation, BMO Nesbitt Burns Inc., iA Private Wealth Inc. and Scotia Capital Inc. As described in the Prospectus Supplement, DIV intends to use the net proceeds of the Offering for repayment of outstanding amounts under DIV’s acquisition credit facility, which funds were drawn by DIV to partially finance DIV’s indirect acquisition of the worldwide trademark portfolio and certain other intellectual property rights utilized by SBS Franchising, LLC in its business of offering, managing and operating master franchises for commercial cleaning services and building maintenance care under the “Stratus Building Solutions” system and trademarks.

DIV is a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America. DIV’s objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors.

DIV was represented by a Farris transaction team including Robert Veitch, Mark Chu, Michael Rawluk, Trevor Shum and Kurtis Harms.

For a copy of the full press release, click here.