TORONTO, Oct. 6, 2015 /CNW/ - Echelon Financial Holdings Inc. ("EFH" or "the Company") (TSX: EFH) announced today acceptance by the Toronto Stock Exchange ("TSX") of the Company's notice of intention to make a normal course issuer bid. Pursuant to the bid, EFH proposes to purchase through the facilities of TSX and alternative trading systems, from time to time over the next 12 months, if considered advisable, up to an aggregate of 619,265 common shares of EFH, representing approximately 10% of its public float, being 6,192,655 common shares as of September 23, 2015. As of September 23, EFH had 11,740,486 issued and outstanding common shares. Purchases may commence through the TSX on October 8, 2015 and will conclude on the earlier of the date on which purchases under the bid have been completed and October 7, 2016. Daily purchases will be limited to 2,598 common shares, other than block purchase exceptions. The previous EFH normal course issuer bid (for the period August 21, 2014 to August 20, 2015) resulted in 302,900 shares repurchased at a volume-weighted average price of $13.40 per share, for a total of approximately $0.7 million. EFH believes that, from time to time, the market price of the common shares may not reflect their underlying value and, therefore, that the bid is in the best interests of the Company and is a desirable use of corporate funds.
All common shares purchased by EFH pursuant to the bid will be cancelled. The program does not require the Company to repurchase a minimum number of shares, and it may be modified, suspended or terminated at any time without prior notice.
About Echelon Insurance
Founded in 1998, EFH operates in the property and casualty insurance industry in Canada and Europe, primarily focused on providing non-standard automobile insurance and other niche and specialty insurance solutions. The Company operates and distributes insurance products through Echelon Insurance, The Insurance Company of Prince Edward Island and Qudos Insurance. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, visit echeloninsurance.ca.
This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the normal course issuer bid and EFH's intentions for the bid.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH's control, affect the operations, performance and results of the Company and its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information, including, but not limited to, the inability of the Company to purchase and cancel common shares pursuant to the normal course issuer bid and market conditions that are not conducive to the bid.
EFH does not undertake to update any forward-looking information, except as required by law. Additional information about the risks and uncertainties about EFH's business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.
SOURCE Echelon Financial Holdings Inc.
For further information: Kathy Shulman, Manager, Investor Relations, Echelon Financial Holdings Inc., Telephone: 905-214-7880, Email: firstname.lastname@example.org