Duke Royalty (DUKE) provides capital to profitable businesses in exchange for rights to a small percentage of their future revenues. This model has worked very well in Canada, but people in the UK are less familiar with it.
Duke Royalty, an Aim-traded company that makes its money by providing capital to companies in exchange for rights to a small percentage of their future revenues over a typical term of 25-40 years, has raised £17.4m at 44p a share through a placing, retail offer and small open offer. The new equity equates to 16 per cent of Duke’s enlarged share capital.
Alternative capital provider Duke Royalty announced on Monday that, further to the completion of its recent fundraising, it has paid down the outstanding balance of its new revolving credit facility from £11.65m to nil.
Duke Royalty Ltd on Monday said it has paid down the entire outstanding balance of a revolving credit facility following a fundraising. The royalty financing firm said it has paid the remaining GBP11.7 million, which it added was a key commitment of its recent fundraising strategy.
Duke Royalty, which provides royalty finance to companies in the UK and Europe, told Yahoo Finance UK it has secured £16.1m ($19.52m) from new and existing institutional investors and is aiming to raise another £3.9m when it opens a retail offer later today.
Duke has just announced a fund-raising of up to £20m, of which £16.1m has already been placed in an institutional offering at 44p per share. This will allow it to invest another £45m in the next 12 months. We estimate a sustainable ROE of 14% for Duke and we see the current fair value range at 50–58p per share.
Duke Royalty, an Aim-traded company that makes its money by providing capital to companies in exchange for rights to a small percentage of their future revenues over a typical term of 25-40 years, has reported a robust set of annual results and a new credit line that has prompted analysts to materially upgrade their forecasts.
Duke Royalty said annual profit more than doubled following a surge in total income as new royalty investments bolstered growth.