Diversified Royalty Corp. Announces Acquisition of US-Based Cheba Hut Franchising, Inc.'s Trademarks, a 10% Dividend Increase, and an Increase in Size of its Acquisition Facility

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[{"type":"text","content":"Diversified Royalty Corp. Announces Acquisition of US-Based Cheba Hut Franchising, Inc.’s Trademarks, a 10% Dividend Increase, and an Increase in Size of its Acquisition Facility\n\n\n\n VANCOUVER, British Columbia, June 17, 2025 (GLOBE NEWSWIRE) -- Diversified Royalty Corp. (TSX: DIV and DIV.DB.A) (the “\n \n Corporation\n \n ” or “\n \n DIV\n \n ”) is pleased to announce that it has acquired the trademarks and certain other intellectual property used by Cheba Hut Franchising, Inc. (“\n \n Cheba Hut\n \n ”) of Fort Collins, Colorado, adding a ninth royalty stream (and the second based in the United States) to DIV’s portfolio. All dollar amounts in this news release, unless specifically denominated in U.S. dollars, are represented in Canadian dollars.\n \n\n\n Highlights\n \n\n\n\n Acquisition of Cheba Hut’s worldwide trademark portfolio and certain other intellectual property rights for US$36 million and certain additional consideration\n \n\n Initial annual royalty revenue from Cheba Hut of US$4 million, representing approximately 7% of DIV’s pro-forma adjusted revenue\n \n 1\n \n\n\n The royalty grows at a fixed rate equal to the greater of 3.5% and the U.S. Consumer Price Index (“\n \n U.S. CPI\n \n ”) + 1.5% per year\n \n\n Annual dividend on DIV’s common shares to be increased 10% from 25 cents per share to 27.5 cents per share, effective July 1\n \n ,\n \n 2025\n \n\n DIV’s strong balance sheet enabled it to fund the Transaction without the need to raise equity\n \n\n\n\n 1.\n \n\n Pro-forma adjusted revenue is a non-IFRS financial measure and as such, does not have a standardized meaning under IFRS. For additional information, refer to “Non-IFRS Measures” in this news release.\n \n\n\n\n Acquisition Overview\n \n\n\n DIV and its wholly-owned subsidiary Cheeb Royalties Limited Partnership (“\n \n Cheeb LP\n \n ”) entered into an acquisition agreement dated June 17, 2025 (the “\n \n Acquisition Agreement\n \n ”) with Cheba Hut and an affiliate of Cheba Hut pursuant to which Cheeb LP acquired (the “\n \n Acquisition\n \n ”) Cheba Hut’s worldwide trademarks portfolio and certain other intellectual property rights utilized by Cheba Hut in its fast casual, toasted...

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