Closes Sale of Blue Goose Subsidiary TORONTO, Oct. 21, 2021 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) is pleased to announce that its approximately 88%-owned subsidiary, Blue Goose Capital Corp. (“BGCC”) has closed the previously announced sale of the 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 indebtedness of approximately $39 million, certain indebtedness owing to Dundee, closing and other costs.
Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation, commented, “The sale of BG Cattle is another milestone for Dundee and shows clear execution on our plan to rationalize our portfolio of non-core assets. This sale is integral to 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 deleverages Dundee’s balance sheet, makes strong inroads to further rationalizing our capital structure, and allows our management team to spend more time on our core mining investment business.” Mr. Goodman concluded, “We will use this positive momentum to continue to look for opportunities to accelerate further rationalization of our non-core legacy portfolio.”
The aggregate adjusted gross proceeds from the Transaction were $63 million. $6.0 million of the purchase price is being held in escrow pending settlement of the working capital and cattle count adjustments, and to secure certain of the representations, warranties and covenants made by BGCC under the share purchase agreement.
https://www.globenewswire.com/news-release/2021/10/21/2318835/0/en/Dundee-Corporation-Closes-Sale-of-Blue-Goose-Subsidiary.html