Dundee Corp T.DC.A

TauRx, Chernett stake and buyback

[FrozenInOntario]

If TauRx is unsuccesfull in their approval, will DC stock be under a lot of pressure if  Chernett decides to throw the towel and sell his stake of almost 13 M shares ?   Would doubt that he is for Junior Mining investments.   So, what happens then to the stock price ?   Should management wait until UK decision is known in April to either buy him out, or do a share buy back ?   Who bougth that 1 000 shares of TauRx, was it a gentlemen's agreement ?

So while we assume that the TauRx upside is not reflected in the share price,  this is not a slam dunk and Goodman has to protect shareholders against this risk.

I still vividely remember the excitement of a biotech stock I owned prior Phase III results annoncement and gee, the 90% drop on opening when the results did not pan out is not a pleasant memory.

Of course, this is different as we are waiting for a regulatory approval.   What puzzles me : why no excitement ?  I look at Gentig chart and its stock price droping from 4.80 in June to 3.60 right now and it does not spell investors irrational exhuberance.

Another point, if that decision is positive, will the stock react right away or will we have wait until the wheels are set in motion for a TauRx IPO or sale ?

So thinking about it, right now, I much prefer that Goodman be cautious with the cash and keep it until approval of TauRx.   Then, if positive or negative, there will be more information available about what to do with it.

GLTA

GLTA

[pierrelebel]

FrozenInOntario asked "What puzzles me : why no excitement ?" Frankly most investors who have followed the TauRx saga for the last many years do not expect the drug to be approved at this time (2025) ... because... of the placibo problem (test patients receiving the placibo also received a small dose of the medication because of a coloration in the urine). Some still hope authorities

[FrozenInOntario]

Thanks for this perspective. So, if TauRx fails to be approved, it will not have have an impact on the stock price ? Chernett took over this position from Herr which invested in 2024.  Seems to me that it was for TauRx given his background.     So if appears that some gambler/speculator did found DC.A.   Not too sure if regular Malaysian/Singapore punters would find

[greyowl]

Or Dundee can sell thier Taurx holding for the equivalent of all the DC.A market cap and then do a  substantial issuer bid for pratically all the DC.A shares. All on the same day preferably if that is allowed. One can dream. We are, however, talking about a terrible disease here . Huge long term effects on families and health systems TauRx either works or it doesn't. in mild to medium

[TheCount11]

HAHAHAHA  Largest shareholder would sue the living daylights out of the Dundee if the terrible management sold TauRx.  

[pierrelebel]

"Dundee can sell thier Taurx holding for the equivalent of all the DC.A market cap" That could only happen IF you can find a buyer (or group of buyers) willing to pay US$125,000,000 for the TauRx shares held by Dundee. It is one thing to sell a few shares to someone willing to speculate one million dollars. Much more difficult to find someone willing to speculate 125 million dollars

[TheCount11]

I am worried management wants to take company private soom so they get all the upside from the massive discount to NAV with Tau at $200 a share.

[FrozenInOntario]

Hey, maybe they can not sell the entire stake of US 125 M, but what about a part of it ?   Goodman sold a big chunk of GMIN stating that it was getting too big a position in their portfolio.  So obviously, selling part or all of TauRx shares would fit right in and unlock some value. Logically, Chernett would be interested in doing a swap for his DC Shares and maybe add some cash

[Catscratch]

They are a few months away from a regulatory decision in the UK.  They've held the TauRx investment for over a decade... They aren going to sell it on the goal line.  Wait a few month and it's either worth 10x that carrying value or something less. ... In the meantime the board, execs and company should be buying some damn stock.

[Catscratch]

My guess is that if there is approval for HMTM in the UK there will two possible scenarios 1) a monetization event/IPO at the TauRx level or 2) Dundee will sell or spin-off its TauRx investment into a separate pubco (something Dundee has done in the past).   Either way it doesn't fit with the mining strategy and Dundee will eventually sell or separate its TauRx investment to

[FrozenInOntario]

Hey Cat, And what happens if there is no approval  ?   And should Goodman do something about this ?  Or can he do something about it ? Anyway, I would expect the stock to go down with TauRx investors leaving.  Temporary dip, would sting but then, would give us a chance to add at a discount. (Again...) Cheers,

[Catscratch]

TauRx has existed on Dundee's balance sheet for decades without an approved drug (TauRx is hardly reflected in Dundee's current market cap).  If no approval I don't expect much change to Dundee's share price.   .... heads you win, tails you don't lose (much).

[TheCount11]

Goodman and board have to go.  Shareholders have lost faith in them.  Last 7 years has been a complete disaster for only one class of shares. Don't forget Parq Casino is open and operating. Don't forget the 12% $14,000,000 Earlston Loan that tanked the stock down to $0.70. Don't forget lazy CEO doesn't do CCs anymore.

[nozzpack]

Glad that I recognized that this one is an over rated dog and got out. Incompetent management who skim off the free cash flows..

[pierrelebel]

nozzpack wrote : "... Incompetent management who skim off the free cash flows." Strong words. Let us check the facts. Based on 2024 Q3 financials, salaries and compensation total in excess of $2.250,000 - basically $3,000,000 yearly. That works out to slightly more than 2% of DC market value.  Then we have management/directors stock options. From Q3 financials: "Share Bonus

[TheCount11]

Dual Class Shares have to go.  Goodman had 7 years.  Roughly 2X the amount of shares at less than half the price before he became CEO.

[Macpoor]

The court, how dual class shares has to go? As retail inverters what we have to do? 

[Catscratch]

Would like to see them buy back stock to lessen the dilution.

[Macpoor]

So Rick Rule top picks DC.A Do you think he is not smart enough to do his homework prior to choose  Dc.A as  top picks? Also the same management that has invested in Maritime.  I am l frustrated as well . Merry Christmas