TORONTO, Sept. 02, 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”), and The Blue Goose Cattle Company Ltd. (“BG Cattle”), which is wholly-owned by BGCC, have entered into a share and asset purchase agreement with an arm’s length third party pursuant to which BGCC will sell all of the shares of Lambert Creek Organic Meats Ltd. (“LCOM”), and BG Cattle will sell certain assets (the “BG cattle Non-Core Assets”), to such third party for aggregate proceeds of $8 million (the “Transaction”). Of the $8 million aggregate purchase price, $2 million is to be paid in cash on closing and the remainder on or before October 31, 2021 pursuant to a secured promissory note issued by the purchaser to BGCC and BG Cattle, which bears interest at 6% per annum and will increase to 14% per annum if the note is not repaid by November 30, 2021. The cash proceeds paid at closing will be used to repay existing bank indebtedness of BGCC and the proceeds from the promissory note are expected to be used to repay indebtedness owing to the Corporation. The Transaction is scheduled to close on or about September 3, 2021.
Jonathan Goodman, President and CEO of Dundee Corporation, commented: “The proposed sale of LCOM and the BG Cattle Non-Core Assets, combined with the proposed $68 million sale of Blue Goose Capital Corp. announced on August 30, 2021, represents the divestiture of all of BG Cattle’s ranches. We are pleased to be further advancing our strategy of the divestiture of non-core assets and will look to continue the rationalization of our legacy portfolio.”
ABOUT DUNDEE CORPORATION
Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking information. This forward-looking information is identified by the use of terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and “should” and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to, Dundee’s expectations, including Dundee’s expectations regarding the use of proceeds from the transactions described herein, timing for closing of the transactions described herein and the objective of accelerating the Corporation’s strategic objectives. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts, predictions or forward-looking information cannot be relied upon due to, among other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking information may differ materially from actual results for a number of reasons. The forward-looking information contained herein is subject to change. However, Dundee disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Greg DiTomaso
NATIONAL Public Relations
T: (416) 433-2801
E: gditomaso@dundeecorporation.com
