TORONTO, Sept. 8, 2015 /CNW/ - The Intertain Group Limited ("Intertain" or the "Company")(TSX: IT) announced today that it intends to make a normal course issuer bid (a "NCIB") to purchase and cancel up to 3,617,740 common shares of Intertain ("Common Shares") over a one-year period, representing up to approximately 5% of Intertain's Common Shares issued and outstanding on the Toronto Stock Exchange (the "TSX") as of September 4, 2015. The Company intends to fund such purchases through working capital.
The Company believes that its current share price does not reflect the underlying value of the Company, and that purchasing shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. The Company intends to buy back Common Shares for cancellation from time to time when it determines the price at which they are trading is undervalued and that such purchases provide the best use of available cash.
"Alongside our shareholders, Intertain has built a very profitable business - a company with one of the highest rates of regulated revenue globally in the online gaming space," said John Kennedy FitzGerald, President and CEO of Intertain. "For that we are extremely thankful. Given, however, where our share price is today, management and our Board are of the strong view that the best investment available to the Company at this time is its own equity."
The NCIB is subject to acceptance by the TSX and, if accepted, will be made in accordance with the applicable rules and policies of the TSX. Common Shares will be purchased through the facilities of the TSX at prevailing market prices at the time of purchase. In accordance with the applicable TSX rules, the maximum amount of daily purchases may not exceed 25% of the average daily trading volume of the Common Shares, and the Company may make, once per calendar week, a block purchase of Common Shares not owned, directly or indirectly, by insiders of Intertain that exceeds the daily repurchase restriction.
About The Intertain Group Limited
Intertain is an online gaming company that provides entertainment to a global consumer base. Intertain currently offers bingo and casino to its customers using the InterCasino www.intercasino.com, Costa www.costabingo.com, Vera&John www.verajohn.com, Jackpotjoy www.jackpotjoy.com, and Botemania.es brands. For more information about Intertain, please visit www.intertain.com.
Disclaimer in Regards to Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information is provided for the purposes of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such information may not be appropriate for other purposes. Forward-looking information may relate to the Company's future outlook and anticipated events, including the number of Common Shares that may be purchased under the NCIB and the advantages to remaining shareholders of a purchase of Common Shares pursuant to a NCIB, and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company or the online gaming industry are forward-looking information. In some cases, forward-looking information can be identified by terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "seek", "aim", "estimate", "target", "project", "predict", "forecast", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts.
Forward-looking information necessarily involves known and unknown risks and uncertainties, which may be general or specific, and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to, the market price of the Common Shares being too high to ensure that purchases benefit the Company and its shareholders, and the risks discussed in the Company's materials filed with Canadian securities regulatory authorities from time to time on www.sedar.com. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information as there can be no assurance that actual results will be consistent with such forward-looking information.
Forward-looking information is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the following: that the Common Shares will from time to time trade below their intrinsic value; that the TSX will accept the Company's proposal to conduct a NCIB; that the Company will complete purchases of Common Shares pursuant to the NCIB; that the Canadian economy will remain stable over the next 12 months; that inflation will remain relatively low; that interest rates will remain stable; that conditions within the online gaming industry, including competition for acquisitions and regulatory developments, will be consistent with the current climate; that the Canadian capital markets will continue to provide the Company with access to equity and/or debt at reasonable rates when required. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.
The forward-looking information in this press release is dated, and relates only to events or information, as of the date of this press release. Except as specifically required by law, the Company undertakes no obligation to update or revise publicly any forward-looking information, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
SOURCE The Intertain Group Limited
For further information: Amanda Brewer, Vice President, Corporate Communications, The Intertain Group Limited, Tel: 416 720-8150, email@example.com