LONDON (ShareCast) - (Sharecast News) - Alternative capital provider Duke Royalty has announced the close of a conditional placing and subscription to raise £44m, before expenses, by way of the issue of 100 million ordinary shares at a price of 44p per share.
The AIM-traded firm said the net proceeds of the fundraising of around £42m would allow the company to continue to finance its diversified pipeline of royalty financing opportunities.

It said it had four new potential royalty partners under signed letters of intent, with aggregate demand of £27.5m of capital, with the additional proceeds to execute new identified opportunities, or make follow on investments in existing royalty partners.

Following the full deployment of capital, Duke said it could have exposure to up to nine royalty partners and 13 underlying diverse businesses.

It added that an increased dividend yield was expected following the deployment of capital, over a period of less than 12 months.

"We are delighted to have closed such a sizable financing today with the strong support from new and existing institutions," said Duke CEO Neil Johnson.

"The board firmly believes in the ability to scale the business and these proceeds will be used to broaden the portfolio and produce accretive cash flow for shareholders.

"The company has made significant progress since readmission in March of last year and I look forward to updating the market as we further deploy the proceeds into long-standing, profitable businesses in Europe and abroad."

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