ARITZIA ANNOUNCES NORMAL COURSE ISSUER BID
VANCOUVER, BC, Jan. 18, 2023 /CNW/ - Aritzia Inc. ("Aritzia" or the "Company") (TSX: ATZ) today announced that the Toronto Stock Exchange ("TSX") has accepted its notice of intention to proceed with a normal course issuer bid ("NCIB").
Aritzia's Board of Directors believes that an NCIB represents an appropriate and desirable use of its available cash, after prioritizing investments in boutiques and strategic infrastructure, to increase shareholder value and is in the best interest of Aritzia and its shareholders. As at November 27, 2022, the Company had approximately $131.9 million of cash and cash equivalents. Any purchases made under the NCIB will be made by Aritzia subject to favourable market conditions at the prevailing market price at the time of acquisition through the facilities of the TSX and/or alternative Canadian trading systems.
Pursuant to the notice, Aritzia may purchase up to 3,860,745 of its subordinate voting shares ("Shares"), representing approximately 5% of the public float of 77,214,916 Shares, during the twelve-month period commencing January 20, 2023 and ending January 19, 2024. As at January 12, 2023, there were 89,843,643 Shares issued and outstanding. Under the NCIB, other than purchases made under block purchase exemptions, Aritzia may purchase up to 82,277 Shares on the TSX during any trading day, which represents approximately 25% of the average daily trading volume on the TSX for the most recently completed six calendar months (being 329,109 Shares) prior to the TSX's acceptance of the notice of the NCIB. Any Shares purchased under the NCIB will be cancelled.
Although the Company presently intends to purchase Shares under its NCIB, there can be no assurances that any such purchases will be completed. Any purchases made under the normal course issuer bid will be made by Aritzia at the prevailing market price at the time of acquisition and through the facilities of the TSX or alternative Canadian trading systems, as applicable. The Company may rely on an automatic purchase plan during the NCIB. The automatic purchase plan would allow for purchases by the Company of Shares during certain pre-determined blackout periods, subject to certain parameters and approval of the TSX.
Pursuant to the Company's previous notice of intention to conduct an NCIB, the Company sought and received approval from the TSX to purchase up to 3,732,725 of its Shares for the period from January 17, 2022 to January 16, 2023. The Company repurchased a total of 1,783,780 Shares on the market for cancellation at a volume weighted average price of $38.77 per Share for total cash consideration of $69.2 million under that prior bid.
Aritzia is a vertically integrated design house with an innovative global platform, home to an extensive portfolio of exclusive brands for every function and individual aesthetic. We're about good design, quality materials, and timeless style that endures and inspires — all with the wellbeing of our People and Planet in mind. We call this Everyday Luxury.
Founded in 1984, in Vancouver, Canada, we create and curate products that are both beautiful and beautifully made, cultivate aspirational environments, offer engaging service that delights, and connect through captivating communications. We pride ourselves on providing immersive and highly personal shopping experiences at aritzia.com and in our 100+ boutiques throughout North America to everyone, everywhere.
Everyday Luxury. To elevate your world.TM
Certain statements made in this press release may constitute forward-looking information under applicable securities laws, including statements related to the Company's NCIB, investments in boutiques and strategic infrastructure, future purchases of Shares pursuant to the NCIB and potential use of an automatic share purchase plan. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent our expectations, estimates and projections regarding future events or circumstances.
Given this unprecedented period of uncertainty, there can be no assurances regarding: (a) the limitations or restrictions that may be placed on servicing our clients in reopened boutiques or potential re-closing of boutiques; (b) the COVID-19-related impacts on Aritzia's business, operations, supply chain performance and growth strategies; (c) Aritzia's ability to mitigate such impacts, including ongoing measures to enhance short-term liquidity, contain costs and safeguard the business; (d) general economic conditions related to COVID-19 and impacts to consumer discretionary spending and shopping habits; (e) credit, market, currency, interest rates, operational, and liquidity risks generally; (f) geopolitical events; and (g) other risks inherent to Aritzia's business and/or factors beyond its control which could have a material adverse effect on the Company.
Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the Company's annual information form dated May 5, 2022 for the fiscal year ended February 27, 2022 (the "AIF"). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. The forward-looking information contained in this press release represents our expectations as of the date of this press release (or as the date they are otherwise stated to be made), and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.
SOURCE Aritzia Inc.(Communications)
Investors, Beth Reed, Vice President, Investor Relations, 646-603-9844, [email protected]
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