LANGLEY, BC, Dec. 28, 2023 /CNW/ - ADENTRA Inc. ("ADENTRA" or the "Company") (TSX: ADEN) is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by the Company of its intention to make a Normal Course Issuer Bid (the "Bid") to be transacted through the facilities of the TSX or any alternative Canadian trading system.
The notice provides that the Company may, during the period commencing on January 2, 2024 and ending on December 31, 2024, purchase up to 1,702,309 of its common shares ("Shares") in total, being approximately 10% of the Company's Public Float (as that term is defined in the policies of the TSX) based on 22,345,708 issued and outstanding Shares as at December 19, 2023. The price which the Company will pay for any such Shares will be the prevailing market price at the time of acquisition. The actual number of Shares which may be purchased pursuant to the Bid will be determined by management of the Company. All Shares will be purchased for cancellation.
Pursuant to TSX policies, as of December 19, 2023, the Company's public float consists of 17,023,097 Shares. Under the Bid, the maximum number of Shares the Company may purchase during any trading day will be 7,151, which represents 25% of the average daily trading volume of 28,607 Shares on the TSX for the period from June 1, 2023 to November 30, 2023. In addition, the Company may make, once per week, a block purchase of Shares not directly or indirectly owned by insiders of the Company, in accordance with TSX policies.
The Board of Directors believes that during the course of the Bid the market price of the Shares may not, from time to time, reflect the underlying value of the Company. As a result, depending upon future price movements and other factors, the Board of Directors believes that the purchase of the Shares may be in the best interests of the Company and its shareholders. Furthermore, any purchases are expected to benefit all persons who continue to hold Shares by increasing their equity interest in the Company when the repurchased Shares are cancelled.
Under the Company's current normal course issuer bid that commenced January 3, 2023 and terminates December 31, 2023, the Company was authorized to purchase up to 1,735,401 Shares. Under that bid, the Company has purchased 421,811 Shares through open market purchases on the TSX at a volume weighted average price of $29.61 per Share during the period from January 3, 2023 to December 19, 2023.
In connection with the Bid, the Company will enter into an automatic share purchase plan ("ASPP") with a designated broker. The ASPP is intended to allow for the purchase of Shares under the Bid at times when the Company would ordinarily not be permitted to purchase Shares due to regulatory restrictions and customary self-imposed blackout periods. Pursuant to the ASPP, before entering into a blackout period, the Company may, but is not required to, instruct the designated broker to make purchases under the Bid in accordance with the terms of the ASPP. Such purchases will be determined by the designated broker at its sole discretion based on purchasing parameters set by the Company in accordance with the rules of the TSX and any applicable alternative Canadian trading system, applicable securities laws and the terms of the ASPP. The ASPP will be in effect for the term of the Bid.
About ADENTRA
ADENTRA is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. The Company currently operates a network of 86 facilities in the United States and Canada. ADENTRA's common shares are listed on the Toronto Stock Exchange under the symbol ADEN.
SOURCE ADENTRA Inc.
Ian Tharp - Investor Relations, Phone: (416) 567-2563, Email: [email protected], Website: www.ADENTRAgroup.com
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