{"id":381184,"date":"2020-11-13T18:44:06","date_gmt":"2020-11-13T23:44:06","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=381184"},"modified":"2020-11-13T18:44:06","modified_gmt":"2020-11-13T23:44:06","slug":"dundee-corporation-announces-third-quarter-2020-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/dundee-corporation-announces-third-quarter-2020-financial-results\/","title":{"rendered":"Dundee Corporation Announces Third Quarter 2020 Financial Results"},"content":{"rendered":"
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TORONTO, Nov. 13, 2020 (GLOBE NEWSWIRE) — Dundee Corporation <\/strong>(TSX: DC.A) (the \u201cCorporation\u201d or \u201cDundee\u201d) today announced its financial results for the three months ended September 30, 2020.<\/p>\n

During the third quarter of 2020, the Corporation recognized net earnings attributable to owners of Dundee Corporation of $15.9 million, or earnings of $0.14 per share, before the effect of any dilutive securities. This compares with a loss of $28.6 million or $0.30 per share incurred during the same quarter of the prior year.<\/p>\n

Operating results during the third quarter of 2020 reflect a $23.5 million market appreciation (2019 \u2013 loss of $16.1 million) on certain of the Corporation\u2019s investments that are carried in the consolidated financial statements at Fair Value Through Profit or Loss (\u201cFVTPL\u201d).<\/p>\n

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\n SUBSTANTIAL ISSUER BID FOR SERIES 2 PREFERRED SHARES<\/strong>
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On September 9, 2020, the Corporation announced the completion of its substantial issuer bid (the \u201cOffer\u201d) to purchase for cancellation the Corporation\u2019s Cumulative 5-Year Rate Reset First Preference Shares, Series 2 (the \u201cSeries 2 Shares\u201d). The Corporation paid an aggregate $38.4 million for the purchase and cancellation of approximately 2 million Series 2 Shares that were validly tendered to the Offer. In addition to the payment of purchase price, the Corporation also paid $0.5 million of accrued dividends on the Series 2 Shares validly tendered. Transaction costs in respect of the Offer were approximately $1.5 million.<\/p>\n

\u201cWe continued to make significant progress in our efforts to streamline our capital structure and improve our financial position during the third quarter. The substantial issuer bid for our Series 2 Shares was successful for the purchase and cancellation of approximately 2 million shares, helping to significantly lower our dividend payments by approximately $2.6 million annually, which is another step in reducing the fixed costs of the Corporation\u201d said Jonathan Goodman, President and CEO.<\/p>\n

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\n EARLY WARRANT EXERCISE PROCEEDS OF $5<\/strong>
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\n 6<\/strong>
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\n .6 MILLION<\/strong>
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Subsequent to quarter end, on October 28, 2020, Dundee announced the completion of its early discount exercise price program of Dundee Precious\u2019 purchase warrants. A total of 7.5 million warrants were exercised at the discounted exercise price of $7.60 during the specific period in exchange for proceeds of $56.6 million. A total of 4.1 million warrants remain issued and outstanding.<\/p>\n

\u201cThe early exercise of the Dundee Precious’ warrants further strengthens our balance sheet and improves our strategic flexibility as we continue to invest in our mining-focused strategy,\u201d added Mr. Goodman.<\/p>\n

\u201cOur management team and board of directors believe it was a prudent step to take to facilitate the early warrant exercise as we continue to navigate a climate of economic, geopolitical and market uncertainty including the ongoing effects of the COVID\u201319 pandemic,\u201d said Robert Sellars, Executive Vice President and Chief Financial Officer.<\/p>\n

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\n COVID-19 UPDATE<\/strong>
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The Corporation\u2019s business continuity plan has been in place since early March and has helped maintain orderly business operations during the pandemic. During the COVID-19 pandemic, the Corporation continues to make the health and well-being of its employees a top priority. As a result, all head office employees continue working from home and are expected to do so for the foreseeable future, limiting their personal risks and helping ensure their safety. The Corporation is monitoring information from local health authorities and all levels of government on a daily basis.<\/p>\n

\u201cWe have made employee safety our top priority during the pandemic and continue to implement business continuity measures that protect our staff while allowing us to continue operations during these challenging times,\u201d said Mr. Sellars. \u201cOn behalf of management and the board of directors, we would like to thank our employees for their continued dedication and commitment.\u201d<\/p>\n

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\n FINANCIAL RESULTS<\/strong>
\n <\/strong>\u00a0 <\/p>\n