Dundee Corporation

Dundee Corporation

June 21, 2011 11:47 ET

Dundee Corporation Acquires Interest in IOU Financial Inc.

TORONTO, ONTARIO--(Marketwire - June 21, 2011) - In accordance with regulatory requirements, Dundee Corporation (TSX:DC.A)(TSX:DC.PR.A)(TSX:DC.PR.B) ("Dundee") announced today that it has acquired, pursuant to a private placement, 2,500,000 units (each a "Unit") of IOU Financial Inc. ("IOU Financial") at a price of $0.40 per Unit. Each Unit is comprised of one Class B common share in the capital of IOU Financial (each a "Share") and one Class B common share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one Share at an exercise price of $0.50 for a period of 12 months from the date of closing. This holding represents an approximate 9.47% interest in IOU Financial on an undiluted basis or an approximate 17.30% interest assuming the conversion of all Warrants.

The position in IOU Financial was acquired for investment purposes and may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors and in accordance with the provisions of applicable securities legislation.

Contact Information

  • Dundee Corporation
    Ned Goodman
    President and Chief Executive Officer
    (416) 365-5665

    Dundee Corporation
    Lucie Presot
    Vice President and Chief Financial Officer
    (416) 365-5157