(Alliance News) - Duke Royalty Ltd on Monday said it has secured GBP461,500 as part of a retail share offer as it seeks to raise funds for further investments.
On Friday, the royalty financing firm announced plans to raise GBP20 million through a share placing, retail offer and open offer, priced at 44.00 pence per share. To date, the placing and retail offer has raised roughly GBP16.6 million, Duke Royalty said.
Shares in the company were 4.0% lower at 45.70p apiece in London on Monday morning.
Up to GBP3.5 million will be available to shareholders who qualify for the open offer of 7.8 million shares.
For every 51 existing shares held, qualifying shareholders are entitled to two open offer shares, Duke Royalty explained.
The funds will be used - along with its revolving credit facility - to deploy capital into an additional royalty partner which is currently under letter of intent.
The financing will also be used to facilitate follow on investments in its existing portfolio, the company said.
Chief Executive Neil Johnson said on Friday: "We are excited to continue building the diversification of royalty partners and to support existing royalty partners in their acquisition strategies. Our revolving line of credit means the company can efficiently use our balance sheet to continue to deploy capital."
By Eric Cunha; ericcunha@alliancenews.com
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Duke Capital (DUKE)