Dundee Acquisition Ltd. Announces Redemption Level

TORONTO, ONTARIO--(Marketwired - Jan. 25, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES

Dundee Acquisition Ltd. ("Dundee Acquisition" or the "Company") (TSX:DAQ.A)(TSX:DAQ.WT) announced today that, in connection with its proposed qualifying acquisition with CHC Student Housing Corp. ("CHC") and other properties, that it has received redemption deposits of approximately 10.77 million Class A Restricted Voting Shares. The result is that, despite the funds committed to its proposed private placement of up to $50 million, the targeted minimum cash amount of $87.3 million will not be satisfied. The Company intends to review its strategic alternatives, including working with CHC. The Arrangement Agreement provides that the Company and CHC will use reasonable commercial efforts to seek to obtain additional debt or equity or other financing sufficient to restore the Company's and/or CHC's cash level to meet the minimum cash requirement, or make other appropriate arrangements to seek to complete the transaction (which may include, without limitation, issuing shares, or securities convertible or exchangeable therefor, or not completing one or more of the proposed acquisitions). In the meantime, it currently intends to continue to hold its shareholders meeting, currently scheduled for January 27, 2017. Based on proxies received to date, shareholders would overwhelmingly vote in favour of the transaction.

No assurance can be given as to the results of the Company's strategic review.

Shareholders wishing to withdraw their redemption deposits may do so.

Dundee's registered office is located at 1 Adelaide Street East, Suite 2100, Toronto, Ontario, M5C 2V9.

About Dundee Acquisition Ltd.
Dundee Acquisition Ltd. is a special purpose acquisition corporation incorporated under the laws of the Province of Ontario for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or engaging in any other similar business combination with one or more businesses or assets.

Cautionary Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Dundee Acquisition Ltd.'s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee Acquisition Ltd.'s control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Dundee Acquisition Ltd. undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.