Duke Royalty Limited Successful Exit of Investment in Royalty Partner (8181Y)
September 14 2020 - 1:00AM
UK Regulatory
TIDMDUKE
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 GBP2.0 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 (GBP2.0 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 , or
contact:
Neil Johnson / Charlie
Cannon-Brookes /
Duke Royalty Limited Hugo Evans +44 (0) 1481 741 240
Cenkos Securities
plc Julian Morse / Michael
(Nominated Adviser Johnson / Stephen
and Broker) Keys / Callum Davidson +44 (0) 207 397 8900
------------------------- ------------------------------
Newgate Communications Elisabeth Cowell +44 (0) 20 3757 6880
(PR) / Ian Silvera / Megan Dukeroyalty@newgatecomms.com
Kovach
------------------------- ------------------------------
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.
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END
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