Dundee Corporation closes sale – GuruFocus.com
TORONTO, October 21, 2021 (GLOBE NEWSWIRE) – Dundee Company (TSX: DC.A) (the “Company” or “Dundee”) is pleased to announce that its approximately 88% owned subsidiary, Blue Goose Capital Corp. (“BGCC”) has completed the previously announced sale of shares (the “Transaction”) of The Blue Goose Cattle Company Ltd. (“BG Cattle”). The gross proceeds from the transaction will be used by BGCC to repay existing debt of approximately $ 39 million, certain debts owed to Dundee, closing costs and other costs.
Jonathan Goodman, President and CEO of Dundee Corporation, said: “The sale of BG Cattle is another important milestone for Dundee and shows a clear execution of our plan to rationalize our portfolio of non-core assets. This sale is an integral part of Dundee’s overall transformation into a disciplined, mining-focused investment company that delivers long-term sustainable value.
Mr. Goodman continued: “We expect the sale of BG Cattle to benefit Dundee in a number of ways. The proceeds from this divestiture significantly reduce Dundee’s balance sheet, make significant progress to further rationalize our capital structure and allow our management team to devote more time to our core mining investment business. Mr. Goodman concluded, “We will use this positive momentum to continue to seek opportunities to accelerate the rationalization of our non-core legacy portfolio. “
The overall adjusted gross proceeds of the transaction were $ 63 million. $ 6.0 million of the purchase price is being held in escrow pending settlement of working capital and cattle count adjustments, and to secure certain representations, warranties and commitments made by BGCC under the Agreement. purchase of shares.
ABOUT THE DUNDEE COMPANY
Dundee Corporation is an independent Canadian holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on creating sustainable long-term value as a trusted partner in the mining industry with over 30 years of experience in delivering profitable mining investments.
This press release contains forward-looking information. This forward-looking information is identified by the use of terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan” , “Predict”, “project”, “will”, “would” and “should” and similar terms and expressions, including references to hypotheses. Such statements may imply, without limitation, Dundee’s expectations, including the objective of accelerating the strategic objectives of the Company. Forward-looking statements, by their nature, are based on assumptions and are subject to significant risks and uncertainties. No forecast, prediction or forward-looking information can be relied on because of, among other things, the evolution of external events and general uncertainties of the company and its business structure. Results shown in forward-looking information may differ materially from actual results for a number of reasons. The forward-looking information contained in this document is subject to change. However, Dundee disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.
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