Canopy Rivers to commence a normal course issuer bid.
Canopy Rivers Inc. (TSX:RIV) , a venture capital firm specializing in cannabis, announces that the Toronto Stock Exchange has accepted the notice of Canopy Rivers' intention to commence a normal course issuer bid. The NCIB reflects management's position that the current share price does not reflect the Company's underlying value and future prospects.
With our strong cash position, launching the NCIB gives us the flexibility to purchase back our stock," however, we continue to have a robust deal pipeline and maintain our focus on making investments that we believe will generate value for our shareholders."Narbe' Alexandrian President & CEO
The NCIB allows the Company to purchase up to 10,409,961 subordinated voting shares (the "Subordinated Voting Shares") of the Company (representing 10% of the Company's current public float (as such term is defined in the TSX Company Manual)) over a period of 12 months commencing on April 2, 2020. The NCIB will expire on April 1, 2021. The Company currently has 155,676,025 issued and outstanding Subordinated Voting Shares.
All purchases made pursuant to the NCIB will be made through the facilities of the TSX or alternative Canadian trading systems. In accordance with TSX rules, any daily purchases (other than pursuant to a block purchase exemption) on the TSX under the NCIB are limited to a maximum of 70,653 Subordinated Voting Shares, which represents 25% of the average daily trading volume of Subordinated Voting Shares on the TSX for the period beginning on September 9, 2019 and ending on February 29, 2020, being an average of 282,613 Subordinated Voting Shares per day during the period.
Canopy Rivers has entered into a pre-defined plan with a broker in accordance with applicable Canadian securities laws to allow for the repurchase of Subordinated Voting Shares at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise.
The actual number of Subordinated Voting Shares that may be purchased and the timing of such purchases will be determined by the Company. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors. Any Subordinated Voting Shares that are purchased under the NCIB will be cancelled.
Disclaimer: Past performance is not an indicator of future performance.
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