Royalties Inc. Acquires $500,000 in Shares of Music Royalties Inc.

Rhea-AI Summary

Royalties Inc. (ROYIF) has announced the acquisition of 1 million common shares of Music Royalties Inc. (MRI) from Quinsam Capital Corporation for $500,000, priced at $0.50 per share. The transaction will be executed through the issuance of 12.5 million Royalties Inc. shares. MRI, a private Toronto-based company, owns 30 cash-flowing music royalties from various rightsholders and has distributed over $11 million through 65 dividend payments since 2019, maintaining a 7.2% annual yield. Following this acquisition, Royalties Inc. will hold 3 million MRI shares, generating $108,000 in annual dividend income. The issued securities will carry a four-month and one-day hold period.

Positive

• Acquisition provides $108,000 in annual dividend income from MRI shares
• MRI has a proven track record with 65 consecutive dividend payments since 2019
• Investment in MRI offers exposure to 30 cash-flowing music royalties
• MRI demonstrates strong yield at 7.2% annually

Negative

• Significant share dilution through issuance of 12.5 million new shares
• Four-month hold period restricts immediate trading of issued securities
• Acquisition is being made at $0.50 per share with no mention of discount or premium to market value

Toronto, Ontario--(Newsfile Corp. - June 18, 2025) - Royalties Inc. (CSE: RI) (OTC Pink: ROYIF) (or "the Company") is pleased to announce that it has entered into an acquisition agreement for the purchase of 1 million common shares of Music Royalties Inc. ("MRI") at a price of $0.50 per share with a value of $500,000 from Quinsam Capital Corporation (CSE: QCA) in exchange for the issuance of 12,500,000 shares in Royalties Inc. MRI is a Toronto-based private company that acquires passive music royalties on iconic songs from rightsholders (artists, producers and songwriters) which holds a portfolio of 30 cash-flowing music royalties. MRI pays a monthly dividend generating a 7.2% annual yield and has paid out over $11 million in 65 dividend payments since 2019. The Company will now hold 3 million shares in MRI generating $108,000 in annual dividend income.

All securities issued pursuant to this acquisition will have a legend with a hold period of four months and one day from the date of issuance.

About Royalties Inc.

• Royalties Inc. owns a 100% interest, subject to a 1.5% NSR owned as a separate asset, on the Bilbao silver-zinc-lead project located in the State of Zacatecas, Mexico.
• Royalties Inc. owns 88% of the outstanding shares of Minera Portree de Zacatecas, S.A. de C.V ("MPZ") which holds an asserted claim (backed by a court approved lien) to a 2% net smelter royalty established in 2002 on five mining concessions called the 'Portree claims', a portion of which is on the Mala Noche Footwall Zone, the main source of production at the Cozamin mine where Capstone Copper Corp. ("Capstone") has been mining since 2010. Capstone assigned this royalty to themselves without the knowledge, consent or proper payment to MPZ, the longstanding and rightful owner, in August 2019. MPZ filed civil and criminal lawsuits in Zacatecas in 2021 to invalidate the contract to transfer ownership and a judgment is expected imminently. The claim is challenged by Capstone (TSX:CS). https://capstonecopper.com/operations/cozamin/
• Royalties Inc. has a 2% stake in Music Royalties Inc. ("MRI"), which has acquired 30 cash-flowing catalogs and paid out over $11 million in dividends since 2019 from 30 cash-flowing catalogs generating a 7.2% annual yield.

For further information contact Royalties Inc. at www.royaltiesinc.com

Tim Gallagher 
CEO & Director
(416) 925‐0090

Connor Gallagher
Investor Relations
(647) 921-2206

Andrew Robertson
Director
(416) 317-0137

Neither the CSE, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of those terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to: sufficient capital and financing required in order to fulfill the Company's business plans and strategy may not be obtained as expected; that the Company will not be able to pay future dividends; and other risks related to the Company as disclosed in the documents filed on the Company's profile at SEDAR+ at www.SEDARplus.ca. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements contained in this press release and they are expressly qualified in their entirety by this cautionary statement. The forward-looking statements herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. The Company does not undertake any obligation to update publicly or revise any such forward-looking statements whether as a result of new information, future events or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/256039

FAQ

What is the value of Royalties Inc's (ROYIF) acquisition of Music Royalties Inc shares?

Royalties Inc is acquiring 1 million shares of Music Royalties Inc at $0.50 per share, totaling $500,000

How many shares is Royalties Inc (ROYIF) issuing for the MRI acquisition?

Royalties Inc is issuing 12.5 million shares to complete the acquisition

What is the annual dividend income Royalties Inc (ROYIF) will receive from MRI shares?

Royalties Inc will receive $108,000 in annual dividend income from its 3 million MRI shares

What is Music Royalties Inc's dividend yield and payment history?

MRI pays a 7.2% annual yield and has made 65 dividend payments totaling over $11 million since 2019

How many music royalties does MRI have in its portfolio?

MRI holds a portfolio of 30 cash-flowing music royalties from artists, producers, and songwriters