DC.PR.B : 63% of Issue Purchased For Cancellation

Dundee Corporation has announced:

the results of its substantial issuer bid, as amended (the “Offer”), to purchase for cancellation from the holders thereof all of its issued and outstanding Cumulative 5-Year Rate Reset First Preference Shares, Series 2 in the capital of the Corporation (the “Series 2 Shares”) at a fixed price of C$19.50 per Series 2 Share. The Offer expired at 5:00 p.m. (Toronto time) on September 8, 2020.

Based on the report of Computershare Investor Services Inc., as depositary for the Offer (the “Depositary”), approximately 1,966,816 Series 2 Shares were tendered to the Offer. In accordance with the terms and conditions of the Offer and based on the Depositary’s report, the Corporation has taken up and paid for approximately 1,966,816 Series 2 Shares at a fixed price of C$19.50 per Series 2 Share for an aggregate purchase price of approximately C$38,352,912. All Series 2 Shares purchased by the Corporation under the Offer will be cancelled. The Series 2 Shares purchased under the Offer represent approximately 63% of the Series 2 Shares issued and outstanding before giving effect to the Offer. After giving effect to the cancellation of the Series 2 Shares purchased by the Corporation under the Offer, approximately 1,149,162 Series 2 Shares will be issued and outstanding.

The Corporation has made payment for the Series 2 Shares tendered and accepted for purchase by tendering to the Depositary (i) the aggregate purchase price, and (ii) the aggregate amount of the accrued dividend payable on the Series 2 Shares validly tendered, taken up and paid for under the Offer, all in accordance with the Offer and applicable laws. The accrued dividend amount payable per Series 2 Share validly tendered, taken up and paid for under the Offer is C$0.25487. Payment to shareholders for the Series 2 Shares will be made in cash, without interest, and will be completed by the Depositary as soon as practicable. Any Series 2 Shares invalidly tendered will be returned to the tendering shareholder promptly by the Depositary.

The full details of the Offer are described in the Corporation’s offer to purchase and issuer bid circular dated July 22, 2020, as amended by the notice of variation dated August 26, 2020, as well as the related amended letter of transmittal and amended notice of guaranteed delivery, copies of which were filed and are available under Dundee’s profile on SEDAR at www.sedar.com and are posted on Dundee’s website at www.dundeecorp.com.

Dundee retained RBC Dominion Securities Inc. to act as financial advisor, Cassels Brock & Blackwell LLP to act as its external legal advisor, Kingsdale Advisors to act as information agent and appointed Computershare Investor Services Inc. to act as depositary for the Offer.

The Board of Directors of the Corporation will continue to review various options for the allocation of capital. Throughout 2019 and during 2020 to date, the Corporation has continued to implement its strategy of rationalizing its portfolio of investments and monetizing non-core assets as it exits business lines which are no longer deemed to be aligned with its longer-term strategy, while remaining committed to creating value for the Corporation and considering opportunities that might present themselves, including potential returns to shareholders of the Corporation.

This purchase offer at 19.50 follows an earlier attempt to organize a Dutch Auction issuer bid. Note that DC.PR.B’s FloatingReset counterpart, DC.PR.D, was not targetted by either purchase proposal.

DC.PR.B is a FixedReset, 5.688%+410, that commenced trading 2009-9-15 with a 6.75% coupon after being announced 2009-8-25. It reset to 5.688% effective 2014-09-30. I made no recommendation regarding conversion. DC.PR.B later reset to 5.284% effective September 30, 2019. I recommended retaining, or converting to, DC.PR.B. Instead, there was a small net conversion to DC.PR.D leaving DC.PR.B with about 61% of the total. The issue is tracked by HIMIPref™ but is relegated to the Scraps – FixedReset (Discount) subindex on credit concerns.

DC.PR.D is a FloatingReset, +410, that came into existence via a partial conversion from DC.PR.B. It is tracked by HIMIPref™ but relegated to the Scraps – FloatingReset subindex on credit concerns.

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