Dundee Corporation Announces Second Quarter 2020 Financial Results
TORONTO, Aug. 13, 2020 (GLOBE NEWSWIRE) — Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) today announced its financial results for the three months ended June 30, 2020.During the second quarter of 2020, the Corporation recognized net earnings attributable to owners of Dundee Corporation of $52.2 million, or earnings of $0.49 per share, before the effect of any dilutive securities. This compares with a loss of $7.9 million or $0.12 per share incurred during the same quarter of the prior year.Operating results during the second quarter of 2020 reflect a $97.4 million market appreciation (2019 – $5.1 million) in certain of the Corporation’s investments that are carried in the consolidated financial statements at Fair Value Through Profit or Loss (“FVTPL”).“During the second quarter we completed the sale transaction of a significant portion of our holdings in Dundee Precious Metals. This transaction allowed us to generate a significant amount of capital to support our growth strategy for the Corporation, while allowing Dundee Precious to expand its shareholder base and continue with its market re-rating,” said Jonathan Goodman, Chairman and CEO.“Subsequent to quarter end, we announced a substantial issuer bid for up to $44 million of the outstanding Series 2 Preference Shares. This offer, combined with the Dundee Precious transaction, were two important strategic steps in support of our efforts to streamline our capital structure,” added Mr. Goodman.SALE OF DUNDEE PRECIOUS METALS SHARES AND WARRANTS
On May 7, 2020, the Corporation announced that it had entered into an agreement with RBC Dominion Securities Inc. and Stifel GMP (together, the “Dealers”) to sell 20 million units (the “Units”) at a price of $6.35 per Unit to qualified purchasers. The size of this secondary offering being made pursuant to an agreement with the Dealers was subsequently upsized to sell 23.9 million units at a price of $6.35 per Unit to qualified purchasers, for gross proceeds to Dundee of $151.8 million.