AIMIA ANNOUNCES INTENTION TO LAUNCH NORMAL COURSE ISSUER BID
TORONTO, May 30, 2024 /CNW/ - Aimia Inc. (TSX: AIM) announced today that its Board of Directors has authorized a Normal Course Issue Bid ("NCIB") to purchase for cancellation up to 10% of its public float of common shares or approximately 7 million common shares, subject to the approval of the Toronto Stock Exchange ("TSX"). Aimia intends to file a notice of intention with the TSX in this regard.
Aimia's decision to approve the NCIB is consistent with its priorities announced on May 15, 2024, and reflective of the Company's commitment to return capital to shareholders.
Subject to the approval of the TSX, it is expected that the NCIB will begin on or about June 6, 2024 and will end at the latest on or about June 5, 2025. Purchases made on the open market through the facilities of the TSX and alternative Canadian trading systems will be made at the prevailing market price at the time of purchase. Aimia may also purchase common shares for cancellation pursuant to exemption orders from applicable securities regulatory authorities, and such purchases will be at a discount to the prevailing market price. As at May 28, 2024 Aimia had 99,679,614 issued and outstanding common shares. The Company's public float for determining the number of shares available for purchase and cancellation, pending TSX approval, was estimated at 70 million common shares as at May 28, 2024. Aimia will only make purchases under the NCIB once all regulatory approvals are obtained.
Aimia will retain discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable TSX and other regulatory requirements. However, Aimia intends to enter into a pre-defined plan (the "Plan") with its broker to allow for the repurchase of common shares at times when Aimia ordinarily would not be active in the market due to its pre-scheduled blackout periods. The Plan will be adopted in accordance with applicable laws and is subject to the approval of the TSX.
Aimia believes that the market price of its common shares may, from time to time, not reflect the inherent value of the company, and that repurchases of common shares pursuant to the NCIB may represent an appropriate and desirable use of the company's capital. Aimia believes it is in its best interest of shareholders to proceed with the NCIB given that its availability liquidity is sufficient to execute on the Company's future strategic direction and capital allocation priorities.
Aimia Inc. (TSX: AIM) is a diversified company focused on unlocking the growth potential of its two global businesses, Bozzetto, a sustainable specialty chemicals company, and Cortland International, a rope and netting solutions company. Headquartered in Toronto, Aimia's priorities include monetizing its non-core investments, returning capital to its shareholders, and efficiently utilizing its loss carry-forwards to create shareholder value.
For more information about Aimia, visit www.aimia.com.
This press release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-looking statements"), which are based upon our current expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. In some cases, forward-looking statements are typically identified by the use of terms such as "expects" and "expected". Forward-looking statements in this press release include, but are not limited to, statements with respect to the approval of the NCIB by the TSX, the timing and size of the NCIB, the number of common shares that can be purchased under the NCIB, our current and future plans, expectations and intentions with respect to the NCIB and Aimia's repurchases thereunder and the timing of such repurchases and the Plan and its approval by the TSX.
Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to us can be found in our current Management Discussion and Analysis and Annual Information Form, each of which have been or will be filed on SEDAR+ and can be accessed at www.sedarplus.ca. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and we disclaim any intention and assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aimia Inc.
Joe Racanelli, Vice President, Investor Relations, 647 970 2200, [email protected]
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