CALGARY, Oct. 16, 2013 /CNW/ - Aston Hill Financial Inc. ("Aston Hill" or the "Company") (TSX: AHF and AHF.DB) announced today that the Toronto Stock Exchange (the "TSX") has approved its notice of intention to make a normal course issuer bid for a portion of its common shares ("Common Shares") and 6% extendible convertible unsecured subordinated debentures ("Convertible Debentures"). The normal course issuer bid will be made in accordance with the requirements of the TSX. Aston Hill may begin to purchase Common Shares and Convertible Debentures on or about October 18, 2013, subject to Company blackout periods.
As of October 3, 2013, 89,038,645 Common Shares and $40,232,000 principal amount of Convertible Debentures were outstanding. Pursuant to the normal course issuer bid, Aston Hill intends to acquire up to 5,412,324 Common Shares and $4,014,000 principal amount of Convertible Debentures in the 12-month period commencing October 18, 2013 and ending on October 17, 2014, which figures represent 10% of the public float of outstanding Common Shares and Convertible Debentures as of October 3, 2013. Purchases under the normal course issuer bid will be made by Aston Hill through the facilities of the TSX and in accordance with applicable regulatory requirements. The price that Aston Hill will pay for any Common Shares or Convertible Debentures will be the market price of such Common Shares or Convertible Debentures at the time of acquisition.
The average daily trading volume (the "ADTV") for the period of April 1, 2013 to September 30, 2013 was 37,655 Common Shares and $14,133 principal amount of Convertible Debentures. Pursuant to the TSX rules, the maximum number of securities that may be repurchased during the same trading day is 25% of the ADTV, being 9,413 Common Shares and $3,500 principal amount of Convertible Debentures, in each case subject to Aston Hill's ability to make one block purchase of each of the Common Shares and Convertible Debentures per calendar week that exceed such limits. Any Common Shares and Convertible Debentures that are purchased under the normal course issuer bid will be cancelled upon their purchase by Aston Hill. Aston Hill will fund the purchases through available cash.
Under its last normal course issuer bid, which ended December 21, 2012, Aston Hill purchased 563,000 Common Shares and $18,000 principal amount of Convertible Debentures.
Aston Hill believes that the repurchase by the Company of a portion of outstanding Common Shares and Convertible Debentures is an appropriate use of available cash and is in the best interests of Aston Hill and its securityholders.
Aston Hill is a diversified asset management company with a suite of retail mutual funds, private equity funds, hedge funds and segregated institutional funds. The Company is also engaged in oil and gas property management. Aston Hill has offices in Calgary and Toronto.
Forward-Looking Statements: This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
For a detailed description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's annual financial statements and management discussion and analysis for the year ended December 31, 2012, both of which are available at www.sedar.com. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.
SOURCE: Aston Hill Asset Management Inc.
For further information:
Chief Executive Officer
Aston Hill Financial Inc.
Vice President and CFO
Aston Hill Financial Inc.