REG - Duke Royalty Limited - PrimaryBid Offer

Duke CapitalAnnouncement

10/05/2022 17:15

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RNS Number : 0038L  Duke Royalty Limited  10 May 2022

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014.

THIS ANNOUNCEMENT IS FOR INFORMATIONAL PURPOSES ONLY, AND DOES NOT CONSTITUTE
OR FORM PART OF ANY OFFER OR INVITATION TO SELL OR ISSUE, OR ANY SOLICITATION
OF AN OFFER TO PURCHASE OR SUBSCRIBE FOR, ANY SECURITIES OF DUKE ROYALTY
LIMITED.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, OR TO ANY PERSON
LOCATED OR RESIDENT IN, ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE,
PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT AMOUNTS TO A FINANCIAL PROMOTION FOR THE PURPOSES OF SECTION
21 OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 ("FSMA") AND HAS BEEN
APPROVED BY PRIMARYBID LIMITED WHICH IS AUTHORISED AND REGULATED BY THE
FINANCIAL CONDUCT AUTHORITY (FRN 779021)

 

 

10 May 2022

 

Duke Royalty Limited

("Duke" or the "Company") (LON: DUKE)

PrimaryBid Offer

 

Further to the Company's recent announcement, Duke Royalty Limited, the AIM
quoted provider of long-term alternative capital solutions to a diversified
range of private, owner-managed SME businesses in Europe and abroad, is
pleased to announce a conditional offer for subscription via PrimaryBid (the
"PrimaryBid Offer") of up to 4,285,715 new ordinary shares of no par value in
the Company ("New Ordinary Shares") at an issue price of 35 pence per New
Ordinary Share (the "Issue Price"), being a discount of 9.7 per cent to the
closing mid-price on 9 May 2022. The Company is also conducting a placing of
new Ordinary Shares at the Issue Price by way of an accelerated bookbuild
process (the "Placing") as announced today. Certain Directors and their
related parties intend to subscribe for, in aggregate, 1,500,000 new Ordinary
Shares in the Placing. A further announcement will be made in due course
regarding their respective participations.

The PrimaryBid Offer and the Placing are conditional on the new Ordinary
Shares to be issued pursuant to the PrimaryBid Offer and the Placing being
admitted to trading on AIM ("Admission"). Admission is expected to take place
at 8.00 a.m. on 27 May 2022. The PrimaryBid Offer will not be completed
without the Placing also being completed.

The Company will use the net proceeds raised from the PrimaryBid Offer and the
Placing to invest further capital into existing Royalty Partners deploying a
buy and build acquisition strategy, and new opportunities.

Neil Johnson, CEO of the Company said:

 

"Over recent months, we have been focused on executing on the exciting growth
opportunities presented by our existing Royalty Partners who continue to
benefit from the flexible capital solution that we offer. The Fundraising
means that we can facilitate several of our Royalty Partners in pursuing their
buy and build acquisition strategies, while also looking to build our new
royalty partners within our pipeline.

 

As we reported in our Q4 trading update, normalised cash revenue for Q1 FY2023
is expected to be £5.0 million, a significant increase year-on-year, and the
board remains confident that trading results for the full year ending 31 March
2022 will be in line with market guidance. This fundraise is intended to fuel
further growth and diversification, adding to the high yielding dividend we
already provide our investors with exposure to. With this in mind, we are
delighted to invite other investors to participate alongside institutions
through the PrimaryBid Offer."

 

PrimaryBid Offer

The Company values its retail investor base and is therefore pleased to
provide private and other investors the opportunity to participate in the
PrimaryBid Offer by applying exclusively through the PrimaryBid mobile app
available on the Apple App Store and Google Play. PrimaryBid does not charge
investors any commission for this service.

The PrimaryBid Offer, via the PrimaryBid mobile app, will be open to
individual and institutional investors immediately following the release of
this announcement. The PrimaryBid Offer will close on 10 May 2022. The
PrimaryBid Offer may close early if it is oversubscribed.

The Company in consultation with PrimaryBid reserves the right to scale back
any order at its discretion. The Company and PrimaryBid reserve the right to
reject any application for subscription under the PrimaryBid Offer without
giving any reason for such rejection.

No commission is charged to investors on applications to participate in the
PrimaryBid Offer made through PrimaryBid.  It is vital to note that once an
application for New Ordinary Shares has been made and accepted via PrimaryBid,
an application cannot be withdrawn.

For further information on PrimaryBid or the procedure for applications under
the PrimaryBid Offer, visit www.PrimaryBid.com (http://www.primarybid.com/)
 or email PrimaryBid at enquiries@primarybid.com.

The New Ordinary Shares will be issued free of all liens, charges and
encumbrances and will, when issued and fully paid, rank pari passu in all
respects with the Company's existing Ordinary Shares.

For further information, please visit www.dukeroyalty.com
(http://www.dukeroyalty.com) or contact:

 Duke Royalty Limited     Neil Johnson / Charlie Cannon Brookes / Hugo Evans               +44 (0) 1481 730 613

 Cenkos Securities plc    Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson  +44 (0) 207 397 8900

 (Nominated Adviser

 and Joint Broker)

 Canaccord Genuity        Adam James / Sam Lucas / Georgina McCooke                        +44 (0) 207 523 8000

 (Joint Broker)

 PrimaryBid Limited       James Deal /                                                     enquiries@primarybid.com

                          Charles Spencer

 SEC Newgate (PR)         Elisabeth Cowell / Richard Bicknell                              + 44 (0) 20 3757 6880 dukeroyalty@secnewgate.co.uk

 

Details of the PrimaryBid Offer

The Company highly values its retail investor base which has supported the
Company alongside institutional investors over several years. Given the
longstanding support of retail shareholders, the Company believes that it is
appropriate to provide retail and other interested investors the opportunity
to participate in the PrimaryBid Offer. The Company is therefore making the
PrimaryBid Offer available exclusively through the PrimaryBid mobile app.

The PrimaryBid Offer is offered under the exemptions against the need for a
prospectus allowed under the Prospectus Rules. As such, there is no need for
publication of a prospectus pursuant to the Prospectus Rules, or for approval
of the same by the Financial Conduct Authority. The PrimaryBid Offer is not
being made into any Restricted Jurisdiction or any other jurisdiction where it
would be unlawful to do so.

There is a minimum subscription of £250 per investor under the terms of the
PrimaryBid Offer which is open to existing shareholders and other investors
subscribing via the PrimaryBid mobile app.

For further details please refer to the PrimaryBid website
at www.PrimaryBid.com (http://www.primarybid.com/) . The terms and conditions
on which the PrimaryBid Offer is made, including the procedure for application
and payment for New Ordinary Shares, is available to all persons who register
with PrimaryBid.

Investors should make their own investigations into the merits of an
investment in the Company. Nothing in this announcement amounts to a
recommendation to invest in the Company or amounts to investment, taxation or
legal advice.

It should be noted that a subscription for New Ordinary Shares and investment
in the Company carries a number of risks. Investors should consider the risk
factors set out on PrimaryBid.com before making a decision to subscribe for
New Ordinary Shares. Investors should take independent advice from a person
experienced in advising on investment in securities such as the New Ordinary
Shares if they are in any doubt.

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