AUTOCANADA RECEIVES TSX APPROVAL FOR NORMAL COURSE ISSUER BID
EDMONTON, AB, Dec. 20, 2021 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, announced today that the Toronto Stock Exchange ("TSX") has accepted the Company's notice of intention to commence a normal course issuer bid ("NCIB") to purchase up to 1,730,321 common shares during the 12-month period commencing December 23, 2021 and ending December 22, 2022 or such earlier date as the Company may complete its purchases under the NCIB.
"AutoCanada's continuing strong operating and financial performance affords the Company the ability to simultaneously execute on our disciplined M&A strategy while repurchasing Company shares at what the Board of Directors believes to be a highly attractive valuation relative to the earnings of the Company," commented AutoCanada's Executive Chairman, Paul Antony.
The Company reviews all elements of its capital allocation strategy on an ongoing basis. The Company continues to focus on supporting its acquisition pipeline, however, the Company believes that the market price of the common shares may not, from time to time, fully reflect their value and accordingly the purchase of the common shares would be in the best interest of the Company and an attractive and appropriate use of available funds. Currently, AutoCanada has over $100 million in revenue under agreement or letter of intent and the Company continues to work towards building its pipeline to continue its strategy of aggregating dealerships with a focus on both brand and geographic diversification. M&A remains a key focus for management. AutoCanada continues to take a disciplined approach to its efforts as it continues to evolve and grow its pipeline of dealership targets.
The number of common shares authorized for purchase under the NCIB represents approximately 10% of AutoCanada's public float as of December 17, 2021 (calculated in accordance with TSX rules). As of December 17, there were 27,493,016 common shares issued and outstanding. Purchases will be made through the facilities of the TSX and/or alternative Canadian trading systems at prevailing market prices in accordance with the rules and policies of the TSX and applicable securities laws. Daily repurchases will be limited to a maximum of 36,686 common shares, representing 25% of the average daily trading volume for the six months ended November 30, 2021 (being 146,747 common shares), except where purchases are made in accordance with the "block purchase exception" of the TSX rules. All common shares purchased under the NCIB will be cancelled.
Although the Company has a present intention to acquire its common shares pursuant to the NCIB, the Company will not be obligated to make any purchases and purchases may be suspended by the Company at any time. The Company reserves the right to terminate the NCIB earlier if it feels it is appropriate to do so.
In connection with the NCIB program, AutoCanada has entered into an automatic share purchase plan ("ASPP") with its designated broker to allow for purchases of its common shares during certain pre-determined black-out periods, subject to certain parameters as to price and number of shares. Outside of these pre-determined black-out periods, shares will be repurchased in accordance with management's discretion, subject to applicable law. The ASPP has been pre-cleared by the TSX and will terminate on December 22, 2022, unless earlier terminated in accordance with its terms.
About AutoCanada
AutoCanada is a leading North American multi-location automobile dealership group operating 78 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Honda, Porsche and Acura branded vehicles. Additionally, the Company's Canadian operations segment currently operates two used vehicle dealership supporting the Used Digital Retail Division, and four stand-alone collision centres (within our group of 18 collision centres). In 2020, our then dealerships sold approximately 66,000 vehicles and processed over 756,000 service and collision repair orders in our 1,098 service bays generating revenue in excess of $3 billion.
Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.
Certain statements contained in this press release are forward-looking statements and information (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in these forward-looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe" and similar expressions) are not historical facts and are forward looking. In particular, this press release contains forward-looking statements with respect to, among other things, the intention to purchase common shares under the NCIB, including the number of common shares to be purchased, and the Company's acquisition pipeline.
The forward-looking statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Readers are cautioned that forward-looking statements are based on current expectations, estimates and projections that, by their nature, forward-looking statements involve a number of known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. These known and unknown risks and uncertainties include, but are not limited to: future operating results, the impact of the COVID-19 pandemic on our operations, financial condition and liquidity and the duration of such impacts; potential changes in the regulatory and legislative environment; volatility in interest and tax rates; operating risks inherent in the automotive retail industry; and changes in general economic conditions including the capital and credit markets all of which may affect the Company's ability to or decision to purchase common shares under its NCIB.
Forward-looking statements involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict. Accordingly, actual results or outcomes may differ materially from those expressed in the forward-looking statements.
AutoCanada cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements contained in this press release speak only as of the date hereof and AutoCanada assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.
SOURCE AutoCanada Inc.
Mike Borys, Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]
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