Diversified Royalty Corp. Announces June 2020 Cash Dividend and Re-Opening of Certain Mr. Mikes Dining Rooms and Bars
04 June 2020 - 9:08AM
Diversified Royalty Corp. (TSX: DIV and DIV.DB) (the
“Corporation” or “DIV”) is pleased to announce that its board of
directors has approved a cash dividend of $0.01667 per common share
for the period of June 1, 2020 to June 30, 2020, which is equal to
$0.20 per common share on an annualized basis. The dividend will be
paid on June 30, 2020 to shareholders of record as of the close of
business on June 15, 2020.
Re-Opening of Certain Mr. Mikes Dining Rooms and
Bars
DIV is pleased to announce that Mr. Mikes
Restaurants Corporation (“Mr. Mikes”) has advised DIV that 33 of 45
Mr. Mikes restaurants are currently open for in-restaurant or patio
dining at reduced capacity. Mr. Mikes has advised DIV that it and
its franchisees are following the regulations and recommendations
of health officials to ensure that a strict regime of property
sanitizing and physical distancing measures are met.
Notwithstanding the partial re-opening of such Mr. Mikes
restaurants, DIV continues to expect that Mr. Mikes will experience
a slow recovery and constrained cash flows. Accordingly, as
previously disclosed, DIV anticipates that Mr. Mikes will require
royalty relief for an extended period of time. DIV is continuing
its discussions with its lenders and Mr. Mikes in this regard.
About Diversified Royalty Corp.
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 currently owns the Mr. Lube, AIR MILES®,
Sutton, Mr. Mikes, Nurse Next Door and Oxford Learning Centres
trademarks. Mr. Lube is the leading quick lube service business in
Canada, with locations across Canada. AIR MILES® is Canada’s
largest coalition loyalty program with approximately two-thirds of
Canadian households actively participating in the AIR MILES®
Program. 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 one of North America’s fastest
growing home care providers with locations across Canada and the
United States as well as in Australia. Oxford Learning Centres is
one of Canada’s leading franchised supplemental education services
in Canada and the United States.
DIV intends to increase cash flow per share by
making accretive royalty purchases and through the growth of
purchased royalties. DIV intends to pay a monthly dividend to
shareholders and increase the dividend as cash flow per share
increases allow.
Forward Looking Statements
Certain statements contained in this news
release may constitute “forward-looking information” within the
meaning of applicable securities laws that involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking information. The use
of any of the words “anticipate”, “continue”, “estimate”, “expect”,
“intend”, “may”, “will”, ”project”, “should”, “believe”,
“confident”, “plan” and “intends” and similar expressions are
intended to identify forward-looking information, although not all
forward-looking information contains these identifying words.
Specifically, forward-looking information in this news release
includes, but is not limited to, statements made in relation to:
the amount and timing of the June 2020 dividend to be paid to DIV’s
shareholders; DIV’s expectation that Mr. Mikes will experience a
slow recovery and constrained cash flows; DIV anticipating that Mr.
Mikes will require royalty relief for an extended period of time;
DIV continuing its discussions with its lenders and Mr. Mikes in
this regard; DIV’s intention to pay monthly dividends to
shareholders; and DIV’s corporate objectives. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events, performance, or
achievements of DIV to differ materially from those anticipated or
implied by such forward-looking information. DIV believes that the
expectations reflected in the forward-looking information included
in this news release are reasonable but no assurance can be given
that these expectations will prove to be correct. In particular
there can be no assurance that: DIV will be able to make monthly
dividend payments to the holders of its common shares; Mr. Mikes
may not make its fixed royalty payments to DIV, in whole or in
part; or DIV will achieve any of its corporate objectives. Given
these uncertainties, readers are cautioned that forward-looking
information included in this news release are not guarantees of
future performance, and such forward-looking information should not
be unduly relied upon. More information about the risks and
uncertainties affecting DIV’s business and the businesses of its
royalty partners can be found in the “Risk Factors” section of its
Annual Information Form dated March 18, 2020 and in its most recent
Management’s Discussion and Analysis, copies of each of which are
available under DIV’s profile on SEDAR at www.sedar.com.
In formulating the forward-looking information
contained herein, management has assumed that DIV will generate
sufficient cash flows from its royalties to service its debt and
pay dividends to shareholders; lenders will provide any necessary
waivers required in order to allow DIV to continue to pay
dividends; the impacts of COVID-19 on DIV and its royalty partners
will be consistent with DIV’s expectations and the expectations of
management of each of its Royalty Partners, both in extent and
duration; DIV and its royalty partners will be able to reasonably
manage the impacts of the COVID-19 outbreak on their respective
businesses. These assumptions, although considered reasonable by
management at the time of preparation, may prove to be
incorrect.
All of the forward-looking statements made in
this news release are qualified by these cautionary statements and
other cautionary statements or factors contained herein, and there
can be no assurance that the actual results or developments will be
realized or, even if substantially realized, that they will have
the expected consequences to, or effects on, DIV. The
forward-looking information included in this news release is
presented as of the date of this news release and DIV assumes no
obligation to publicly update or revise such information to reflect
new events or circumstances, except as may be required by
applicable law.
THE TORONTO STOCK EXCHANGE HAS NOT
REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE
ACCURACY OF THIS RELEASE.
Additional Information
Additional information relating to the
Corporation and other public filings, is available on SEDAR at
www.sedar.com.
Contact:Sean Morrison, President and Chief
Executive OfficerDiversified Royalty Corp. (604) 235-3146
Greg Gutmanis, Chief Financial Officer and VP
Acquisitions Diversified Royalty Corp. (604) 235-3146
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