Is Dundee Corp going PRIVATE?What is DUNDEE 2.0?
At the recent shareholders meeting, Jonathan Goodman:
"We welcome Steven to our leadership team in his new role of Executive Vice Chair,” commented Mr. Goodman. “We believe that with his skillset, expertise, and senior leadership experience, Steven is perfectly suited to execute on one of our key strategic objectives, namely, rationalizing our portfolio of legacy assets.” Steven Sharpe’s extensive senior leadership and public company experience span a wide range of industries and responsibilities, from legal practice to corporate strategy and restructuring to investment banking to C-suite leadership.
“With [Steven] leading this initiative,” he added, “Dundee’s efforts in this regard will clearly accelerate, and we can sharpen our focus on building Dundee 2.0 as an active investor in the mining sector.”
It makes a lot more sense to achieve Dundee 2.0 goals as a private company than a public company, required to provide quarterly reports using accounting rules that do not favour holding companies.
Last year Dundee Corp raised huge amounts of money by selling DPM. More money was raised this year with the proceeds of the DPM warrants.
Some of that money was used to buy back common shares buying back "weak hands" ($1.40) and preferred shares, reducing future dividend payments and increasing common share equity since preferred shares were purchased below "book value" ($25).
All in all, I see controlling shareholders (Goodman and associates) eliminating minority shareholders over time. I expect more common share buyback to be announced soon.
Unfortunately, long time shareholders may never get the opportunity to recoup their original investment if their shares were purchased more than three years ago ($3+).