Duke Royalty Strikes Third European Royalty Agreement With Trimite

LONDON (Alliance News) - Duke Royalty Ltd said Mondayit has entered into a royalty financing agreement with a Birmingham-based specialist coatings manufacturer Trimite Global Coatings Ltd.

The AIM-listed alternative capital closed-ended investment company said that the royalty financing agreement - which is its third in Europe - is worth GBP9.0 million, and will provide it with the necessary funds to buy-out a minority shareholder, to fund a small bolt-on acquisition, and to provide the additional working capital required to fund its anticipated future organic sales growth.

The company said the arrangement will produce an initial cash-on-cash yield of over 13% via monthly payments.

In addition, Duke said that it has entered into non-binding terms with a fourth royalty partner and will publish an updated, unaudited balance sheet to better reflect its current financial position following its GBP20.0 million equity financing completed in December 2017.

"We have been working closely with Trimite for some time to execute this financing. With a solid sales pipeline and a high-quality management team who are also investing their capital in the business, we feel that Trimite represents a textbook deal for Duke," Duke Chief Executive Neil Johnson said.

Duke shares were up 0.8% at 39.00 pence per share on Monday.