Picture of Duke Capital logo

DUKE Duke Capital News Story

0.000.00%
gb flag iconLast trade - 00:00
FinancialsBalancedSmall CapSuper Stock

REG - Duke Royalty Limited - Successful Exit of Investment in Royalty Partner

For best results when printing this announcement, please click on link below:
http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20200914:nRSN8181Ya

RNS Number : 8181Y  Duke Royalty Limited  14 September 2020

14 September 2020

 

Duke Royalty Limited

("Duke Royalty", "Duke" or the "Company")

 

Successful Exit of Investment in Royalty Partner

 

Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions
to a diversified range of profitable and long-established businesses
in Europe and abroad, is pleased to announce the successful exit of its
£2.0 million investment in Royalty Partner Xtremepush
Limited ("Xtremepush"), the Dublin-based B2B technology platform.

 

Highlights:

 

·    The transaction represents Duke Royalty's first exit, further
validating its funding model

·    Post exit fees, the investment's IRR is in excess of 22%, with a
cash-on-cash return in excess of 1.5x

·   Duke retains its warrant over 3% of Xtremepush's share capital,
representing further potential upside in the future

 

Xtremepush has been a Royalty Partner since February 2018. Operating in an
online sector which has attracted substantial amounts of capital, Xtremepush
has grown robustly in recent years through a combination of organic growth and
M&A.  Duke's capital has played an important role in this, having been
used to fund the strategic acquisitions of Emailcenter UK Limited
("Emailcenter") in March 2018 and Alchemetrics Limited ("Alchemetrics") in
December 2019.

 

Whilst Xtremepush represented one of the smaller investments within the Duke
portfolio (£2.0 million), the deal has nonetheless returned an attractive IRR
in excess of 22% to date, which is anticipated to be further enhanced
following the eventual exercise of Duke's warrants over 3% of Xtremepush's
share capital.

 

Neil Johnson, CEO of Duke Royalty, said:

 

"We have enjoyed working with the Xtremepush team as they have grown the
business from strength to strength. We are proud of the role Duke's flexible
capital solution has played in Xtremepush's recent success and wish Tommy and
the team all the best as they continue to drive the business forward.

 

"We are equally pleased to have successfully generated returns in excess of
22% for Duke's shareholders, further validating the attractiveness of our
model."

 

Tommy Kearns, CEO and founder of Xtremepush, added:

 

"We thank Duke Royalty for the capital support throughout a period of
expansion in Xtremepush's business.  Although the business has moved to
another capital provider due to where the evolved business has reached in its
growth lifecycle, we are grateful for the level of support and capital that we
received since we partnered in early 2018.  The flexibility of the solution
and the ability for us to choose the timing of our refinancing event,
certainly helped us focus on the execution of our global expansion plan."

 

***ENDS***

 

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

 

 Duke Royalty Limited             Neil Johnson / Charlie Cannon-Brookes / Hugo Evans               +44 (0) 1481 741 240

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

 (Nominated Adviser and Broker)

 Newgate Communications           Elisabeth Cowell / Ian Silvera / Megan Kovach                    +44 (0) 20 3757 6880

 (PR)                                                                                              Dukeroyalty@newgatecomms.com

 

About Duke Royalty

 

Duke Royalty Limited provides alternative capital solutions to a diversified
range of profitable and long-established businesses in Europe and abroad. Duke
Royalty's experienced team provide financing solutions to private companies
that are in need of capital but whose owners wish to maintain equity control
of their business. Duke Royalty's royalty investments are intended to provide
robust, stable, long term returns to its shareholders. Duke Royalty is listed
on the AIM market under the ticker DUKE and is headquartered in Guernsey.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGPUQGBUPUGCP

Recent news on Duke Capital

See all news