Growth LimitationsThere is limited upside as the investigation continues, including from a likely pause in the pursuit of new royalty assets, where the sector is undergoing inflection.
Leadership InstabilityDRI announced the immediate resignation of its CEO and suspension of its CFO with pay as the result of an ongoing investigation related to irregularities associated with consulting fees and expenses by the previous CEO.
Market OpportunitiesThe investigation creates a substantial overhang and the pursuit of new royalty assets is likely to be paused, despite a unique opportunity in the market and inflection underway.