Dundee Corporation Obtains Approval for Class A Share Buyback Program
Toronto, Canada – April 9, 2025 – Dundee Corporation (TSX: DC.A) (“Dundee” or the “Company”), a leading publicly-traded investment management firm, is pleased to announce that it has received regulatory approval from the Toronto Stock Exchange (TSX) to renew its normal course issuer bid (NCIB) for the purchase of up to 3,211,519 Class A subordinate voting shares (“Class A Shares”) during the period from April 14, 2025, to April 13, 2026.
Background on Normal Course Issuer Bids
A normal course issuer bid, also known as a share buyback program, is a corporate finance tool that allows a publicly-traded company to repurchase its own shares from the marketplace. This strategy can be employed for various reasons, including capital structure optimization, reducing outstanding shares, and enhancing earnings per share.
Details of Dundee’s Class A Share Buyback Program
Under the renewed bid, Dundee can purchase up to 3,211,519 Class A Shares, representing approximately 5.9% of the total issued and outstanding Class A Shares as of March 31, 2025. The average daily trading volume of Dundee’s Class A Shares on the TSX for the six months ending March 31, 2025, was 561,848 shares. Dundee will not purchase more than 25% of the average daily trading volume on any given trading day.
Impact on Individual Investors
The renewed Class A share buyback program by Dundee Corporation could potentially benefit individual investors in the following ways:
- Price Support: As the company repurchases its shares in the open market, it could help to provide price support for the stock, potentially preventing further declines in the share price.
- Reduced Supply: The buyback program reduces the total number of Class A Shares available for trading, which could lead to increased demand for the remaining shares and potentially higher share prices.
- Dividend Yield: Dundee is a dividend-paying company, and the buyback program could potentially lead to higher dividends per share for remaining shareholders due to the reduced number of outstanding shares.
Impact on the World
The impact of Dundee’s Class A share buyback program on the world at large is less direct but could potentially include:
- Capital Markets: Share buyback programs are a common tool used by publicly-traded companies to manage their capital structures and return value to shareholders. The renewed buyback program by Dundee is an indication of the company’s confidence in its future prospects and could help to bolster investor confidence in the Canadian capital markets.
- Economic Growth: Corporate profits and earnings are crucial drivers of economic growth. As Dundee generates profits and repurchases its shares, it contributes to the overall economic growth of Canada and beyond.
Conclusion
Dundee Corporation’s receipt of regulatory approval for its Class A share buyback program marks an important milestone for the company and its shareholders. The renewed bid enables Dundee to repurchase up to 3,211,519 Class A Shares over the next year, potentially providing price support, reducing supply, and enhancing dividends for remaining shareholders. Additionally, the buyback program underscores Dundee’s confidence in its future prospects and contributes to the overall economic growth of Canada and beyond.
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