EDMONTON, June 6, 2017 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX:ACQ) is pleased to announce that it has received approval from the Toronto Stock Exchange ("TSX") to commence a normal course issuer bid to purchase its common shares on the open market in accordance with the rules of the TSX or under applicable law.
Pursuant to the normal course issuer bid, AutoCanada may acquire up to 1,372,984 of AutoCanada's common shares ("Common Shares"), representing approximately 5% of the issued and outstanding Common Shares of the Company. Subject to certain prescribed exemptions and any block purchase made in accordance with the rules of the TSX, daily purchases will be limited to 24,247 Common Shares, which is equal to 25% of the average daily trading volume of 96,990 during the last six months.
AutoCanada is authorized to make purchases during the period of June 8, 2017 to June 7, 2018 or until such earlier time as the normal course issuer bid is completed or terminated at the option of AutoCanada. Purchases of Common Shares will be made in open market transactions on the TSX or through alternative trading systems. AutoCanada may also purchase Common Shares through private agreements or share repurchase programs if it receives an issuer bid exemption order permitting it to make such purchases. Any purchases of Common Shares made by way of private agreements or under share repurchase programs may be at a discount to the prevailing market price as provided in the relevant issuer bid exemption order. As of June 1, 2017, AutoCanada had 27,459,683 outstanding Common Shares.
Decisions regarding the timing of future purchases of Common Shares will be based on market conditions, share price and other factors. AutoCanada may elect to suspend or discontinue its normal course issuer bid at any time. Common Shares acquired under the normal course issuer bid will be cancelled. AutoCanada believes that the market price of Common Shares could be such that their purchase may be an attractive and appropriate use of corporate funds.
From time to time, when AutoCanada does not possess material non-public information about itself or its securities, it may enter into a pre-defined plan with its broker to allow for the purchase of Common Shares at a time when AutoCanada ordinarily would not be active in the market due to its own internal trading blackout period and insider trading rules. Any such plans entered into with AutoCanada's broker will be adopted in accordance with the requirements of applicable Canadian securities laws.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 57 franchised dealerships, comprised of 65 franchises, in eight provinces and has over 4,250 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, Mercedes-Benz, BMW and MINI branded vehicles. In 2016 with $2.9 billion in revenue, our dealerships sold approximately 60,000 vehicles and processed approximately 864,000 service and collision repair orders in our 928 service bays.
SOURCE AutoCanada Inc.
For further information: Christopher Burrows, Senior Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]