Thu. Dec 7th, 2023
    Dundee Corporation Announces Substantial Issuer Bid to Streamline Capital Structure

    Dundee Corporation (TSX: DC.A, DC.PR.B and DC.PR.D) has revealed its plans to launch a substantial issuer bid in order to purchase and cancel up to 975,610 of its Cumulative Floating Rate First Preference Shares, Series 3 at a purchase price of C$20.50 per share. The maximum aggregate purchase price for the bid is set at C$20,000,005.

    To ensure the success of the bid, Dundee has entered into lock-up agreements with Stornoway Recovery Fund LP and Ravensource Fund, who together hold approximately 30.48% of the issued and outstanding Series 3 Shares. The locked-up shareholders have agreed to tender all of their Series 3 shares to the bid.

    The substantial issuer bid is set to commence on November 22, 2023, and will expire on December 27, 2023. Dundee reserves the right to extend or withdraw the offer at a later date.

    Jonathan Goodman, President and CEO of Dundee Corporation, stated that this offer is an important step in streamlining the company’s capital structure to support its strategic business plan in the junior mining industry. The bid will help to reduce the call on capital from preferred share dividends and allow the company to allocate its capital more efficiently.

    Lila Murphy, EVP and CFO, believes that the bid will simplify Dundee’s balance sheet, lower its overall cost of capital, and decrease run-rate cash outflows, benefiting all shareholders.

    In addition to the substantial issuer bid, Dundee’s Board of Directors will explore various options for the allocation of capital, including repurchases of the corporation’s securities.

    Q: What is a substantial issuer bid?
    A: A substantial issuer bid is a formal offer made by a corporation to purchase a significant number of its own shares directly from shareholders.

    Q: Who are the locked-up shareholders?
    A: The locked-up shareholders are Stornoway Recovery Fund LP and Ravensource Fund, who have agreed to tender all of their Series 3 Shares to Dundee’s bid.

    Q: What is the purpose of the substantial issuer bid?
    A: The bid aims to streamline Dundee’s capital structure, reduce preferred share dividends, and allocate capital more effectively in the junior mining industry.

    Q: When will the bid expire?
    A: The substantial issuer bid is set to expire on December 27, 2023, unless extended or withdrawn by Dundee Corporation.