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 £2.0 million investment in Royalty Partner Xtremepush Limited ("Xtremepush"), the Dublin-based B2B technology platform.
· 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 (£2.0 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."
For further information, please contact www.dukeroyalty.com, or contact:
Duke Royalty Limited
Neil Johnson / Charlie Cannon-Brookes / Hugo Evans
+44 (0) 1481 741 240
Cenkos Securities plc
(Nominated Adviser and Broker)
Julian Morse / Michael Johnson / Stephen Keys / Callum Davidson
+44 (0) 207 397 8900
Elisabeth Cowell / Ian Silvera / Megan Kovach
+44 (0) 20 3757 6880
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.