Dundee Corporation Announces Results of Substantial Issuer Bid

Dundee to purchase for cancellation 14,285,714 Class A Shares at C$1.40 per share representing 14.3% of the issued and outstanding Class A Shares

TORONTO, Jan. 12, 2021 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A, DC.PR.B and DC.PR.D) (“Dundee” or the “Corporation”) announced today the results of its substantial issuer bid (the “Offer”) launched on November 25, 2020 to purchase for cancellation up to C$20,000,000 in value of its Class A subordinate voting shares in the capital of the Corporation (the “SV Shares”) from the holders thereof who chose to participate. The Offer expired at 5:00 p.m. (Toronto time) on January 11, 2021.

As further detailed below, the Corporation will purchase 14,285,714 SV Shares under the Offer at C$1.40 per SV Share, which will reduce the SV Shares issued and outstanding by approximately 14.3% to 85,692,301 and advances the Company’s stated objectives of returning capital to shareholders and streamlining its capital structure.  

Jonathan Goodman, President and CEO of Dundee Corporation, commented:

“Since returning to Dundee in early 2018, our strategic objective has been to bring the Corporation back to its roots as an active investor focused on delivering long-term, sustainable value from mining investments. As part of the implementation of this strategic direction, we are committed to rationalizing our portfolio of legacy investments and monetizing non-core assets as the Corporation exits business lines which are no longer aligned with Dundee’s mining-focused strategy. We have also taken significant steps to streamline the Corporation’s capital structure, reduce its overall costs and G&A expenses, and strengthen its balance sheet.”

“Completing this Offer is viewed as a prudent allocation of capital that is consistent with our goal of returning excess cash to shareholders when appropriate. Looking ahead, we will continue to review options for capital allocation that deliver value to our shareholders as we execute on our strategic plan.”

Based on the report of Computershare Investor Services Inc., as depositary for the Offer (the “Depositary”), an aggregate of 43,024,893 SV Shares were tendered to the Offer, including an aggregate of 20,822,835 SV Shares which were either tendered at the minimum purchase price or by way of a purchase price tender under the Offer. As the Offer was oversubscribed, successful holders of SV Shares can expect to have approximately 68.6% of their successfully tendered SV Shares purchased by the Corporation, other than successful “odd lot” tenders, which are not subject to pro-ration. In accordance with the terms and conditions of the Offer and based on the Depositary’s report, the Corporation has taken up and paid for 14,285,714 SV Shares at a price of C$1.40 per SV Share for an aggregate purchase price of C$20,000,000. All SV Shares purchased by the Corporation under the Offer will be cancelled. After giving effect to the cancellation of the SV Shares purchased by the Corporation under the Offer, 85,692,301 SV Shares will be issued and outstanding.