TSX Symbol: CIX
TORONTO, May 27 /CNW/ - CI Financial Corp. announced today that The
Toronto Stock Exchange has accepted its Notice of Intention to Make a Normal
Course Issuer Bid.
CI intends to purchase up to 15,677,022 of its common shares by way of a
normal course issuer bid through the facilities of The Toronto Stock Exchange.
All shares purchased under the normal course issue bid will be cancelled
unless they are needed for re-issuance pursuant to CI's equity compensation
plans. The 15,677,022 common shares represent approximately 10% of the public
float. As of May 26, 2009, there are 293,518,840 issued and outstanding common
shares of CI.
It is expected that the purchases under the normal course issuer bid may
commence on May 29, 2009 and will terminate on May 28, 2010, or on such
earlier date as CI completes its purchases or provides notice of termination.
Purchases will be effected through the facilities of The Toronto Stock
Exchange at prevailing market prices, or such other means as may be permitted
by The Toronto Stock Exchange. CI is permitted to purchase up to twenty-five
percent of the average daily trading volume of the common shares for the six
months prior to the date hereof being approximately 128,403 common shares.
CI believes that the market price of the common shares may, at certain
times throughout the duration of the normal course issuer bid, be undervalued
based on CI's future earnings and prospects and accordingly the directors are
of the opinion that the purchase of common shares is an appropriate use of
funds to increase shareholder value.
To the best of the knowledge of the directors and senior officers of CI,
no director, senior officer, associate of a director or senior officer, or
person holding 10% or more of the common shares of CI intends at present to
sell common shares during the course of this bid. However, sales by such
persons through the facilities of The Toronto Stock Exchange or elsewhere may
occur as the personal circumstances or decisions of any such person, unrelated
to the bid, determine. The benefits to any such person whose common shares are
purchased would be the same as the benefits available to all other holders
whose common shares are purchased.
In the last 12 months under its previous normal course issuer bid, CI
purchased 3,201,004 of its common shares at a weighted average price of $17.18
per common share, of which 3,043,664 common shares were purchased for
cancellation, and the remaining 157,340 common shares were purchased for
re-issuance pursuant to CI's equity compensation plans.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth
management company with approximately $82.1 billion in fee-earning assets at
April 30, 2009. CI offers a broad range of investment products and services,
including an industry-leading selection of investment funds, and is on the Web
For further information:
For further information: Stephen A. MacPhail, President, Tel.: (416)