Dundee Corporation Targets Up to C$20 Million in Series 3 Preferred Shares Buyback

TORONTO, Nov. 20, 2023 -- Dundee Corporation DC, with its preferred series shared marked under DC.PR.B and DC.PR.D, has officially announced its intent to initiate a significant issuer bid. This move is expected to involve the repurchase and subsequent cancellation of up to C$20,000,005 worth of its Series 3 Preferred Shares. This strategic action is often taken by corporations to buy back their own shares from the marketplace, demonstrating confidence in the company's intrinsic value and effectively increasing the equity stake of remaining shareholders. It also often results in an earnings-per-share boost, due to the reduced number of shares outstanding.

Substantial Issuer Bid Explained

In a substantial issuer bid, a company offers to repurchase a notable portion of its shares within a specified timeframe. This allows shareholders the opportunity to sell back shares typically at a premium to market prices, offering an immediate liquidity event. Dundee Corporation has outlined specific terms and conditions that will govern the repurchase process, with detailed information to be provided in the issuer bid circular that will be distributed to shareholders. Participation is optional, offering flexibility to investors holding Series 3 Preferred Shares in Dundee's portfolio.

Impact on Shareholders and the Market

The announcement from Dundee Corporation is a significant development for stakeholders and the market at large. Share buybacks are considered a signal by management of undervalued share prices or a method to return capital to shareholders more efficiently than dividends. For Dundee, this move represents a confident stance on its financial standing and future outlook. Shareholders are advised to review the details upon release and consult with financial advisors to understand the implications for their investments.

Process and Timeline

Dundee Corporation's offer will follow a set timeline, divulged within the official issuer bid circular, which includes an expiry date, and irrevocable commitments by the shareholders choosing to accept the offer. All related transactions will be conducted in accordance with regulatory guidelines to maintain transparency and fairness throughout the process. Affected investors should be attentive to announcements for further details on the bid's commencement and its conclusion.

Dundee, Buyback, Shares