It’s merely a small step there is however finally what’s promising from Dundee Corp., the holding company that has interests inside a slew of industries including investment advisory, corporate finance, energy, resources, property and infrastructure.
The great news: a good investment Dundee produced in a recently formed unit more than four years back seems set to go public by way of a reverse takeover having a Gulfstream Acquisition 1 Corp., a capital pool company whose shares are listed on the TSX-Venture Exchange.
This week Gulfstream announced it had signed a non-binding letter of intent with Blue Goose Capital Corp. (Dundee acquired a majority stake in Blue Goose this year, right after creating Dundee Agricultural.) Plans demand that intent to become converted into a definitive agreement.
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For Gulfstream the proposed acquisition is going to be its qualifying transaction given that it’s buying Blue Goose. When the merger is completed, Blue Goose will end up a public company and Dundee may have monetized one of its investments.
Blue Goose, whose net assets in Dundee’s last annual report (March 2015) were listed at $86.13 million, is concentrated “on the production, distribution and sale of organic and natural beef, chicken and fish.” Dundee has an 87 per cent curiosity about Blue Goose, which has operations across Canada: It has organic beef cattle operations and a hay-making business in B.C.; as well as an natural and organic poultry business as well as a fish farming business in Ontario.
Blue Goose, that has been around since 1992, was formed “with one man’s desire to feed his family neat and nutritious protein, and the belief that if you take care of your land and animals, they will look after you.” In every of the last financial years Blue Goose has posted a loss of revenue.
For the qualifying transaction to proceed, a number of steps need to be taken: Blue Goose needs to raise $20 million; the 2 sides have to complete their due diligence; the shareholders of Blue Goose need to approve the deal; and also the TSX-Venture has to sign off.
TASEKO BATTLE
The proxy battle being fought by Raging River, a shareholder and bond holder at Taseko Mines – is similar to many more which have occurred over the years: The dissident wants change in the company due to the fact of either management’s poor performance or governance issues; the organization typically resists; and the fight goes on until its clear that certain side is set for victory.
Along the way there’s lot of mud slinging. Thursday was no exception. Each morning Taseko issued a statement saying Raging River had failed to disclose a company bankruptcy of one of “its proposed nominees for Taseko’s Board.” (In the afternoon Taseko designed a second release announcing the resignation of one of their directors “effective immediately.”)
In its first release, Taseko said Raging River “explicitly denied” the involvement of their four director nominees with any bankruptcies inside the previous 10 years, essential under Canadian law. For the reason that release, Taseko included an attachment detailing the bankruptcy settlement agreement with one of Raging River’s nominees.
By a special afternoon, Raging River indicated it is “commencing a defamation lawsuit with the objective of elevating the tenor of the debate to focus on the real problems with Taseko.”
Given that the meeting date is May 10, there’s lots of time for more arrows to be fired by each side.
bcritchley@nationalpost.com
