Dundee Corp T.DC.A

New Press Release - Dundee Corporation Announces the Sale of 8,000 Shares of TauRx Pharmaceuticals Ltd. for Proceeds of US$1 Million

TORONTO, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A) (the “Company” or “Dundee”) announced today that it has sold to a private investor 8,000 of the 1,015,008 shares it holds in TauRX Pharmaceuticals Ltd. (“TauRx”) at a price of US$125 per share for proceeds to the Company...read article.

[pierrelebel]

If we accept that US$125 per share is a fair market value, then 1,007,008 shares x US$125.00 = US$ 125,876,000 converted into Cdn$ using US$0.7425 per Cdn$1.00 = $169,530,000 divided by 89,310,000 shares = $1.90 WOW! ...and the shares are trading for $1.42. ... and what about cash on hand and all those mining shares? Once again I ask: what am I missing?

[Catscratch]

And Dundee's TauRx investment is going to be worth a hell of a lot more if TauRx gets approval for HMTM which is expected in the UK later this year. If there is a market for TauRx at this price what makes absolutely zero sense is why isn't Dundee buying back the sub voting shares.

[TheCount11]

Sounds really really fishy.  Why the hell would Dundee sell ANY TauRx shares with a few months to go on, likely, UK approval after having this speculation for over 15 years!?!?   Why wasn't this option available to current shareholders?  Terrible.  

[valueinvestor89]

I think is smart to take some chips of the table. Maybe a bit more, but I think the key point is this is the first time in a while we get to see what the market value for the investment is. They hold Taurx at $68M cad or 0.78 a share. This US$1M investment translates into a cad$170m valuation which is $1.9 a share. With the regulatory approvals this could go to 0 or it could go to $500m so is an

[TheCount11]

Do you honestly think a "Private Investor" is going to go to all the trouble of getting a CEO to go to their BOD for 1 million USD?  When are approvals expected?  Why wasn't this offered to shareholders?  

[TheCount11]

My base case has management buying back shares NCIB over the few months.  Hopefully they do.

[CBalardo]

Yes possibly,but they're missing the boat, Ausgold up, Saturn gold up, reunion up, magna up. This stock should be moving much quicker especially when they you can see they have 125 million worth in Taurx. Then magna moves parabolic and stock trades nothing? Actually the first two days after Magna announced it was mostly my purchases showing. Where the hell is everyone? There is no liquid cash

[CBalardo]

There we have movment! At open finally. We just need soc, mea, and Atico to move abd this will be a good quarter. The other thing Atico is an actual producer of gold and copper and they should have good quarter cause they have 40% of ore help back due to lag on shipping and said it would go to next quarter. They still had good results and aparently its just been sitting gaining value. They also

[Catscratch]

That's $125M USD. But I agree... there effectively is no significant buyer here for Dundee stock which is exactly why the company needs to step-in with meaningful share buybacks to clean up all the short term speculators willing to sell shares way below any reasonable view of fair value.

[TheCount11]

Wrote to Investor Relations and asked them if the TauRx opportunity was available to shareholders.

[TheCount11]

Agreed.   So why pop the stock price by selling 8000 TauRx shares when the investor can simply buy $1.36M of Dundee stock? Now regular shareholders who value TauRx have 8000 less and NCIB costs 15% more?!?!

[Catscratch]

I don't get it either.  They didn't need to press release this transaction because $1M is not material.

[TheCount11]

Honestly why chance it.  It's material to me and probably many investment funds that are shareholders.  You can bet management is fielding calls this morning.  I am still waiting to hear back from IR.

[TheCount11]

Given the "pop" in the stock price investors find it material. 

[pierrelebel]

The announcement stinks as the announcement of this relatively small transaction makes no sense. Could it be that management, before closing the third quarter on Monday, wants to substantially increase the "value" of its holdings in TauRx? If so, for what purpose? If management really want to proceed with thier concept of Dundee 2.0 (mining exploration/production), TauRx does not

[TheCount11]

I have asked Investor Relations is this deal is available to shareholders.  Waiting to hear back.

[nozzpack]

It's a promotional gambit as the stock is grossly undervalued . They still have $170 million cad of those Taurex shares in their holdings which is almost $2 per share by itself. Nice to see such a sneaky way to promote..

[Catscratch]

I guess that's right.  

[TheCount11]

Goes to show how checked out the marginal shareholder of Dundee is.  Come back in a few months and then see what TauRx is worth.

[Catscratch]

Indeed.  I guess that's the opportunity for those who are willing/able to understand and value the business.  Also illustrates the opportunity for the company to buyback stock at good prices.

[Catscratch]

Perhaps I should just shut up about the common  stock buybacks and be greatful the stock is up 15% today and moving in the right direction for the first time in a while.

[Catscratch]

And perhaps more importantly perhaps I should be buying more Dundee stock...  If there weren't the multiple voting shares I'd definitely be doing that.

[TheCount11]

Haha.  So true.  It's friday...there's a party here so I might as well enjoy it too!

[CBalardo]

Just clean and simple who ever this private investor is? If he/she like Taurx that bad why not buy more and why would you not be buying the hell out of this stock if they wont sell the rest to you? 

[TheCount11]

What I am missing is how a "private investor" can get 8000 shares of TauRx.   The company has owned over 100 private investments over the years and we have never ever seen a "private investor" end up with fish, chicken, livestock, casino, etc before.  Why now?  Why this?

[TheCount11]

Why didn't Dundee management tell the "private investor" just to buy Dundee stock?  WTF is going on at HQ?